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Home sellers to play waiting game

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Guest | 09 Jan 2014, 06:13 AM Agree 0

As house prices are expected to maintain a healthy momentum into the first half of 2014, market experts are anticipating a shift to a seller’s market.
"In the absence of some calamitous event or material increase in mortgage financing costs, we expect this positive momentum to characterize 2014. In fact, we expect a market tipped decidedly in favour of sellers for the first half of the year, after which we project a shift to a more balanced market,” says Phil Soper, president and chief executive of Royal LePage.
The agency says the average price of a home in Canada increased between 1.2 per cent and 3.8 per cent in the fourth quarter of 2013.
"Talk of a 'soft landing' for Canada's real estate market in the new year is misguided.  We expect no landing, no slowdown, and no correction in the near-term. Conditions are ripe for as strong a market as we saw in the post-recessionary rebound of the last decade,” says Soper, adding that they do not expect the government to implement any market intervention, such as a hike in interest rates.
The survey showed year-over-year average price increases in the fourth quarter of 2013 of 3.6 per cent to $418,282 for standard two-storey homes and 3.8 per cent to $380,710 for detached bungalows, while the average price of a standard condominium rose 1.2 per cent to $246,530.
  • robert ede | 09 Jan 2014, 04:33 PM Agree 0
    Two things not mentioned:
    1) Typical "senior citizen" or other types of "Last Time Sellers", are not selling....because there is no point.
    -if home is paid, most mechanical systems in good shape, and handymen available for driveway & gardens...why go to a condo that's half the size, no storage, elevator, "not as comfy and familiar as my house" environment ...for not much less price and with similar operating expenses.
    -gramma is staying put, til health, family, etc reasons press the need for equity-release.

    2) inflation/currency devaluation (the debt-busting programme that dares not speak its name) is making residential real estate the wisest place to park money in a zero% prime-rate environment.

    Buy houses. The biggest one you can operate for yourself in the best school district and transportation location.
    Buy 2nd, 3rd etc homes (w 2 or 3 units) on main streets or low density detached neighbourhoods - first areas to attract re-intensification.
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