Market Surge: Listings Soar 47%

Market Surge: Listings Soar 47%

According to the most recent sales statistics from May, the listings to date for this year have been coming fast and furious. Considering the amount of choice available, there really isn’t a better time to be a buyer, if you’ve got the funding. There were 47% more listings available this April 2024 than there were last April and and in May that number was up another 21% year over year. Add to the mix that The Bank of Canada began decreasing the prime rate by ¼ point and that there are fewer buyers out there looking, it’s an excellent time to jump into the market.

Chances are, when the Bank of Canada lowers interest rates further as they are predicting, there is going to be a crush of buyers out there, and prices are only going to go higher.

Where are the buyers right now? I think it’s a bit of a mob mentality; people think ‘if nobody else is buying, why should I?’. The same thing happens sometimes with properties. A house can languish on the market for weeks without an offer, leaving buyers wondering what’s wrong with the house. But then someone makes an offer and all of a sudden, a second offer comes along.

Now that the numbers have come in for May, it’s no surprise that numbers were even more dramatic than they were in April – more listings and fewer buyers. The good news for sellers is that prices have remained fairly steady.

Sellers these days need to be a little patient. According to TRREB, the average number of days a property is on the market (YTD) is 24, which is high when you realize that it used to be under two weeks. However, the real number sellers should be aware of is Property Days on Market (PDOM), which is 35. What’s the difference? Realtors will often re-list a property at a different price so that it seems new and fresh, but the PDOM is a more accurate representation of how many days the property has been on the market.

That said, not everything is actually selling. In C08, only 20% of the listings were selling, which seems pretty low. There are more houses selling compared to condos, but it’s still quite low.

My advice: If you need the funds from a sale of a property to close on a new property (and most people do!) right now, you should absolutely be selling first. Because there’s so much inventory, if you sell your place and give yourself a 60-90 day closing, you should be able to find something you love within that period of time.

Where are prices headed? Not surprisingly, when the market stats were published at the beginning of June, there is a slight decline in the prices of most housing types, including condos. There’s still some downward pressure from increasing inventory and decreased buyer activity. A lot of new listings are one bedroom condos, and investors are concerned that the rent they’ll be getting will not be enough, or a mortgage renegotiation won’t be affordable. With the increase in available properties for sale and some seller’s timelines, there is definitely opportunity to negotiate a very attractive sale price.

My latest is an unusual home on St. Clarens. There’s an interesting story related to this home. I actually helped the seller buy the empty lot in 2014. Although the zoning only allowed for a width of eight feet, this was perfect, because his plan was to build a home with shipping containers, which are exactly eight feet wide! You can have a look here.