Canadian Realestate Magazine forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Moderate May home sales point at possible 2017 cooldown—CREA

Notify me of new replies via email
Ephraim Vecina | 17 Jun 2016, 08:15 AM Agree 0
2017 slowdown is expected to stem from low sales volume in British Columbia and Ontario, according to the CREA’s latest report
  • Ian Hocking, broker | 17 Jun 2016, 11:19 AM Agree 0
    Interesting post but I feel it might actually miss the mark. It's not so much higher volume that has been the issue but out of control prices. Lower volume can be a driver of higher prices as with less on the market people fight over what is there. However, what may not be so easy to judge is the number of properties now being sold, "Off" the MLS. In the last 2 months 30% of our sales volume didn't go through the MLS at all with Sellers preferring not to get caught up in the general crazy ness, controlling the closing date in a more flexible way, and by us literally having a Buyer and finding a specific home for that Buyer. There seems to be a lot more agent to agent conversation going on where agents can bring a Buyer and Seller together without having to subject their clients to the somewhat stressing process of open market bidding. I would also add that 35% of our current listing inventory is not listed anywhere on the MLS and is essentially invisible with the exception of our own client base while we look for specific homes for those potential Sellers.
    Clients are appearing to move towards a market model that favours a bespoke, controlled service with dedicated agents looking for specific types of properties. I could be wrong but I suspect the data that CREA has access to maybe is being skewed slightly based on this off market situation. However, I would agree that the house 'price' rise is due for a slow down, but that is based on economic drivers, such as interest rates which are essentially done going down. One of the reasons that the number of foreclosures in Ontario and Bc has dropped substantially is the rise in pricing that has allowed people to refinance their way out of immediate debt situations. Unless house prices rise again, sooner or later those people will find themselves needing to refinance again as people seldom change habits when they are not forced to. Interest rates are more likely to remain static ,or rise slightly over the next 12months, hence the affordability of housing will not decrease and a knock on from that will be an inability for prices to rise. You cannot have house price inflation at 15-20% for too many years with salary inflation at 3% before you have a major issue. Let's all hope that the housing market decides to go sideways for a few years to avoid a major issue.
Post a reply