May 17, 2010

Only a month or two ago we were in a sellers-market. There were very few listings, many people looking for their new homes, and some crazy bidding wars.

However, this sellers-market looks like it is starting to cool, and maybe we will be entering a buyers-market over the next few months.

Over the weekend I was blown away by the number of FOR SALE signs, and OPEN HOUSES around Toronto. Further, I am continually hearing of sellers not getting any offers on their houses.

Do sellers still think we are in a sellers-market? Do buyers think we have entered a buyers-market?

According to CREA:

“Residential sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards numbered 52,042 units in April 2010. This is less than one per cent short of the record for national sales activity during the month of April, which was set in 2007. Compared to April 2009, national activity was up 20 per cent.

Seasonally adjusted national home sales activity slipped 2.6 per cent from the previous month, and now stands 6.8 per cent below the peak reached in December 2009. More than half of the decline in activity over the first four months of 2010 resulted from fewer sales in British Columbia, while activity in Ontario and Quebec remains at or near record levels.

Some 99,901 homes were newly listed for sale on Canadian MLS® Systems in April 2010, surpassing the previous record for the month of April set in 2008 by six-tenths of one per cent. A total of 236,397 residential properties were listed for sale on Boards’ MLS® Systems at the end of April 2010, down 1.9 per cent from levels one year earlier.

“Next month will mark the passage of one year since the national average price rebounded from the recessionary through to return to the pre-recession peak, so the rise in the national average price is expected to be more subdued next month, ” said CREA Chief Economist Gregory Klump.

“The national average price could potentially be skewed higher over the next couple of months if buyers of higher priced homes in Ontario and British Columbia move their purchase decision forward to beat the introduction of the HST in July.”

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