The Canadian Real Estate Association released a statement yesterday with data that showed the number of newly listed houses fell 1.2 per cent from July to August. Translation: supply of houses on the market has decreased. Tara Perkins (Globe and Mail) reported research from TD Bank Economist Diana Petramala, saying “The number of homes for sale have not kept up with demand and the market moved more in favour of sellers.” This is why now is a great time to list your home. Petramala continued to say the sales-to-listings ratio has moved back to the level they reached at the end of last year (when prices grew 8% to 9% year-over-year). According to this report, it suggests prices may be on their way up during the last quarter of 2014. Most economists agree that house prices are outpacing household income, combined with high levels of debt, and therefore putting the economy at risk. Ottawa has been banking on signs of a soft landing. But there seem to be just as many signs suggesting we should brace for impact.
Footnote: buyers, don’t be dismayed. With our team in your corner, hunting for your desired home, you can rest at ease by knowing you’ll have a step on the competition.