The Big Shift
The Big Shift
Are you noticing more ‘for sale’ signs on your neighbours lawns these days? Do you see the words ‘Coming soon’ lately and think, not another one?! Rest assured, you’re not imaging things, the real estate market has shifted and shifted rapidly at that. From January through March, housing inventory was incredibly low. At any given time in Newmarket, there never seemed to be more than 50-70 houses for sale at any given time. Supply could not keep up with the rampant demand. An agent would barely finish hammering the post into the ground before buyers would descend like vultures to a carcus and it wasn’t uncommon for that same sign to read ‘Sold’ by day’s end. The term ‘bully offer’ became a phrase every serious buyer in that market was all to familiar with. And then came April and with it, listings, lots and lots of listings. And although this seemingly ‘crazy market’ was only about two month’s ago, it feels like a long time ago (in a galaxy far, far away). Today we have in excess of 320 plus listings in Newmarket and many homes are doing something unheard of just a short time ago, sitting. TREB reported 521 new listings in Newmarket in April as compared to 411 in March and only 211 in February. The average price in February was $1,060,077 and slid to $1,037,941 in April.
The real question is (and let’s be honest, the only one you care about), how does the current market affect you? Well, are you a seller? Are you a buyer? Or are you just a chronic MLS junkie? If you are the latter, know you aren’t alone. If you are a seller, first things first, don’t freak out! Prices are still way up year over year. The big picture is your home will still fetch an incredible dollar as compared to just a few years ago. Yes, we may be seeing less ‘insane/ boggle your mind/ don’t make sense’ prices right now, but that is okay. Because some of those head scratching prices we witnessed ‘back then’ were too good to be true (just ask your bank appraiser) and those types of unheard of gains made even the biggest market optimists weary about where it was all heading. So now it seems sellers and realtors just have to work a little harder to make a home stand out if they want the big bucks. A sign on the lawn and MLS won’t guarantee the bidding war it once did.
If you are a buyer, you can take a deep breath and know your prayers have been answered. If you missed out on your dream home in February, relax, there are plenty more dream houses on the way. You might even be able to do a home inspection! Careful, I said might. What we do know is buyer’s have more choice now with the added 33.6% of new listings TREB reported in April.
The reality is the real estate market in the GTA is still very healthy. Even with the most recent changes made by the Government of Ontario, most notably the non-resident speculation tax of 15% to all non citizens or permanent residents of Canada, the GTA and areas within it such as Newmarket are very desirable places to live and with mortgage rates still being ultra-low, there are plenty of buyers out there to gobble up these listings. The market has normalized some and hopefully that is a sign that the unsustainable 20-30% year over year gains are over. For that we should be thankful- aIthough, it doesn’t mean we all will be. I mean, how often have you heard someone say, ‘I feel bad that these poor kids today will never be able to afford houses like we once did’ And out of the other side of their mouth the same person complains, ‘my house only sold for 50K over asking, I wanted 100K over!’. It all depends on perspective and hopefully we will all gain some as the market continues to adjust.
Michael DeAngelis, Broker
RE/MAX Realtron Realty Inc