Market Update for February 22
Usually by this time in February we are normally gearing up for the spring market to start. One problem, however…Sellers didn’t get the memo. Like most of last year we continue to struggle with low inventories, Is it economic uncertainty that is causing this or is affordability the likely culprit within the freehold sector? Despite a continued increase of listings over the last few weeks it is important to note that overall listings for freehold homes are down significantly from last year, despite the influences of a brutal winter of snowstorms and freezing rain. This is not the news that buyers want to hear as they are still out there waiting to purchase.
The freehold sector last week saw a 29% drop in new listings but an increase in sales up by 7%. The good news is the number of sales is 20% higher than a year ago and the percentage of sales at or above the list price remains at a notable 54% which indicates that bidding wars are still happening in certain neighbourhoods. We are experiencing very localized market conditions. The number of new condo listings also continued to contract last week while demand and sales were up 7% from the week before. With fewer listings, the increased competition resulted in 42% of available condos selling at or above the list price. We are still experiencing the impact of the “stress test” which varies by location, housing type, and price.