Despite the feeling of a declined market, sellers still remain optimistic about selling their home. Accoriding to the Canadian Real Estate Association Canada showed a second monthly record of new listings coming on the market, with Ontario showing strong growth in listings.
Residential listing grew 1.8 percent on the adjusted month over month basis with over 78,000 lsitings in May 2008.
Alberta was one of the few provinces to show delcine in new listings, but the rest of the country largely offset Alberta reduction.
With the increase in inventory, the market has started to balance out, moving away from the strong sellers market we have seen over the last few years. Seller’s will need to concentrate on pricing properties correctly or face being left behind as pricing stagnant and buyers move to more competitively priced homes.
This is shown with the adjusted sales numbers edging lower in May by 1.2%. With an increase in listings but a decrease is sales, it’s clear there is a market balance occurring, if the trend continues a buyers market could develop, leaving aggressive and perhaps greedy home owners hoping to still cash in a the real estate boom very disappointed.
Although Ontario is still experiencing price gains, and the national average rose 1.8% which is the lowest increase in 7 years.
“The resale housing market has evolved quickly in just a few short months,” said CREA Chief Economist Gregory Klump. “A more balanced market means buyers are in a better negotiating position. Rising food, fuel and home prices are denting consumer confidence. Increasingly cautious homebuyers may keep listings on the market longer before being sold and increase the importance of realistic pricing.”
“Over the long haul what’s good for consumers is a strong, stable and balanced market,” says the President of The Canadian Real Estate Association, Cal Lindberg. “Buyers get to take time to assess their options, and sellers must find the right marketing plan for their property. A REALTOR® provides the expertise to help both buyers and sellers with those issues.”
Belleville and Quinte have mirrored the national trend, with Quinte West being an exception formthe strong military growth, which is expected to continue for the next 3 years.