City wide selling prices of homes continue to ease with a continuation of elevated inventory levels. For the fifth consecutive month citywide benchmark prices trended downward and now total $426,300. This is a year over year decline of 2.9 per cent. What’s to blame for this downward trend? Take your pick! Elevated unemployment levels, poor job growth within the city, higher interest rates, higher mortgage rates, and stricter mortgage rules are all making a contribution. Many sellers are making price adjustments in an effort to exit this current chain of inventory supply.
October saw inventory levels of 7,345 with total sales of 1,322. This has affected citywide months supply which now sits at above 5.6 months. October inventory levels are at a near record high for the month. In fact, the detached sector has not seen such a slowdown in sales activity since the 1990’s.
What is the take home message? Sellers need to price their homes aggressively if they want to stand out among the competing listings in the neighbourhood. Understand that it can now take double the time to sell a home as it normally would have in a different time and market. I am now taking detached listings for six months when I used to be able to take them for just three or four months. Pay attention to traffic to your listings and be ready to make price adjustments when required. For buyers, you have much selection to choose from and some great pricing to boot. Just make sure you are properly pre-qualified to make a purchase so as not to be caught off guard by the strict mortgage lending policies.