“How’s the market?” – a small talk go-to when chatting with a real estate agent (and we’re always happy to answer).
However, over the past month or so, we’ve sensed underlying concern in how the question is being asked – especially from those looking to buy or sell this summer.
“Hey, what’s up with the market?!?”
And I get it – there has been a shift in the market: fewer showings, fewer offers, prices tapering off.
But does this signify what everyone’s always afraid of: a significant price correction, or worse – a crash? Is it still a good time to buy and sell?
It’s natural to fear impending doom when once-skyrocketing prices plateau – but it’s not time to panic.
Let’s look at what’s going on:
Listings are up. There were 1,086 residential listings in Kitchener-Waterloo and outlying areas in June – well above 2016 levels.
Sales are neutral. 716 homes were sold in June, which is just a shade below last June’s totals.
Prices are tapering off – but still above Feb 2017 levels and 20% over June 2016.
More listings, sales remaining relatively steady, prices tapering off – but not cratering.
What we’re seeing is a more balanced market where buyers finally have some selection while sellers continue to get great value for their homes – especially compared to what they would’ve sold for this time last year.
In other words, it’s an environment where more buyers and sellers feel comfortable about participating in the process – which is healthy.
And they should feel comfortable: optimism in our region continues to be sky high. K-W is tightly connected with Toronto (Canada’s economic capital), is internationally renown for its schools and innovation, and viewed as the centrepiece of our country’s future economy.
(And it’s a pretty great place to live, too.)
Market ebbs and flows will occur, prices will rise and sometimes fall, but the long term prospects for our region remain strong.
The foundation is solid, there’s so much room for growth, it’s still a great time to sell – and, yes, a much better time to buy.