In all market segments - houses, condos, and townhomes - prices are on the rise, inventory is incredibly low, and most properties are selling over the asking price. Where three to six months of inventory was historically quite normal, our internal research shows that the inventory of available houses has dropped to a record of low of 21 days of supply this week. Condos are not far behind with only one month of supply. Both of these inventory numbers are still dropping which points to further challenging times ahead for first time buyers and for those hoping to sell one property and buy another. Low interest rates, covid induced demand, and an overall shortage of properties for our growing population are all to blame.
While the single-family home market has been making all the news for rising prices over the last year during our pandemic, condos initially saw falling prices as buyers displayed a strong preference for their own front door. However, as we have mentioned over the last quarter, condos have been rebounding. Condo pricing is now clearly moving higher, with almost one in three condos selling over asking in competitive bids. A condo buyer could benefit significantly by making a purchase sooner rather than later.
For single family home buyers, even though the statistics make it look nearly impossible to secure a home at a “reasonable” price, there may be some respite on the horizon. It’s too early to call it a trend, but last week a smaller percentage of homes sold over the asking price than the week before. It’s a small change so far, but one that we will be watching very closely.
For house sellers, the current market continues to provide outstanding opportunities to sell a property for top dollar, especially for properties that may be challenging to sell in a more balanced market. If you are considering selling this spring, our advice would be to get on the market sooner rather than later. If a slight cooling trend does develop, the market advantage that sellers currently enjoy could quickly wane.
If you would like to discuss these ideas in more depth, please feel free to give Karl Leong or Mark Roozendaal a call. We are here to help you make sense of this changing market.
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