We've gathered some of the top real estate headlines from last month for May's month in review.
With national statistics for April being released and markets in some areas starting to slow down, is a buyer's market next? We've gathered some of the top real estate headlines from last month for May's month in review.
Sales and listings dropped
The Canadian Real Estate Association (CREA) released national statistics mid-May that showed national home sales were down in April 2022 (home sales dropped by 12.6% on a month-over-month basis). Along with home sales being down, the number of newly listed properties also went down 2.2% month-over-month.
Markets in many areas are starting to cool off
What does this mean for potential buyers? This slowdown could mean buyers have more time on their side while searching for a home. This past month, we've seen buyers have less competition in bidding wars. Although bidding wars may still be happening in some markets, one might be competing against a handful of other offers rather than dozens like we saw earlier this year. In other markets, bidding wars have stopped and properties are selling for lower than anticipated.
What does this mean for potential sellers? This could mean returning to more traditional marketing strategies. The days might be over for listing a property at a lower price and expecting a bidding war, resulting in it selling for much more. The days of unconditional offers may be over as well. With less competition in certain areas, home buyers are doing their due diligence before signing papers.
The slowing market in some areas has caused anxiety for some Canadians who purchased a property when home prices were at their peak. When the competition was fierce, some homebuyers skipped on home inspections, leaving them with potential problems. Some real estate agents and lawyers have even noticed some buyers wanting to back out of deals and some sellers exploring legal action.
Is a buyer's market on the horizon?
A buyer's market happens when there is more advantage for buyers than sellers because the number of homes on the market surpasses the number of buyers. Whether you are looking to buy or sell, it should be a personal decision and be made on a case-by-case basis. Less activity in the market is signaling that we’re headed towards a buyer's market, however, it's hard to predict where the market is headed.
What can you do if you're thinking of buying or selling in today's shifting market? The short answer is to work with a trusted Realtor®. Whether you're looking to buy or sell, working with a Realtor® can take a lot of stress out of the process. At Nathan Team, we help clients transform through different stages of their life, whether it be their first home, or downsizing into a comfortable retirement. We’re there for our clients every step of the way, building meaningful relationships by focusing on achieving sustainable outcomes, best suited for their needs. Our team works with clients from across Durham to Middlesex and surrounding areas. Our market knowledge in these areas gives us the opportunity to help our clients with their buying and selling needs. Contact us today for a no obligation conversation on how we can help you with your real estate needs.