Buyer’s Market In Dominance. Average selling price up 8% over last year!
Traditionally May – August are peak months for real estate every year, which attracts lots of Sellers & Buyers to complete their real estate requirements before the school season starts in September. This, every year, brings in fair amount of real estate transactions during these three months in most Canadian Markets. This Summer is turning out to be little different then traditional. June 2010 compared to June 2009 is showing more Buyer dominance in the market, as most of the buying volume have already disappeared in early part of this year due to Mortgage Qualification Chaos. “With more homes to choose from in the second quarter, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. Still, the average price for June transactions was $435,034 – up eight per cent compared to the average of $403,972 recorded for June 2009. “The annual rate of average price growth in the second half of 2010 will be in the single digits.” which is important to stabilize the over heated market. Home buyers can expect more choice and lower prices in the second half of 2010, while sellers can expect fewer offers for their homes.
Overall, a good stabilized market which will still sustain and grow due to historically low interest rates, is what is expected for coming months. Prices for Semi’s & Detached houses were up about 9% in the April-June quarter, compared with the same time last year. Condominiums were up 7.3%. As per few Real Estate Gurus, home prices are expected to rise an average 6.8% over last year, while the number of home sales will increase by just over 1% from 2009.