Although buyers still had to compete for condos last month, we are seeing less people coming through open houses and less number of offers in each multiple offer situation. There are signs that the market is slowing down.
“High prices, new tax announcements, rising interest rates, and stricter mortgage requirements are among the factors affecting home buyer and seller activity today.” Phil Moore, REBGV president said in the statistics report released last week.
The sales-to-active ratios for March 2018:
- For all property types, the ratio was 30% (up 2%, still in seller’s market)
- For detached home, the ratio was 14% (up 1%, entering balanced market)
- For townhomes, the ratio was 40% (up 2%, still in seller’s market)
- For condos, the ratio was 62% (up 2%, still in seller’s market)
Although there were less demand from buyers and a 30% decrease in home sales in March 2018 compared to a year ago, the Sales-to-Active Ratios were still increasing across all property types.
Phil Moore explained “Even with lower demand, upward pressure on prices will continue as long as the supply of homes for sale remains low. Last month was the quietest March for new home listings since 2009 and the total inventory, particularly in the condo and townhome segments, of homes for sale remains well below historical norms.”