With September wrapped up, we are now fully engaged in the fall market. Historically this is a very active seasons in the Southern Ontario region. Although it hasn’t felt like fall weather quite yet, we are seeing signs of the market gaining the momentum that is associated with this time of year. Demand has not waned from a summer market that was particularly active.
LOW LEVEL OF LISTING INVENTORY
What we have not seen, thus far, is the high level of listing inventory that typically hits the market after Labor Day. While inventory did bump up from August levels, it was not to the same degree that we are accustomed. That is particularly true in the lower priced segments of the market, where competition among buyers is strongest.
Days on market, average listing discount, and median sales price remained relatively unchanged from August to September. As we enter October, we expect these positive indicators to marginally creep up; however, the market is relatively consistent at present and, in general, has normalised after the frenzied market from January to May. As we have been reporting for some time, the market is still skewed in favour of sellers in the lower end and towards purchasers in the higher end. This does vary to some degree between differing ‘micro-markets’ .
NEW NOTICEABLE TREND
One trend which has become increasingly noticeable is the shrinking pool of cash buyers. For several months it felt like cash buyers were the norm and buyers that were financing had to go to great lengths to have their offers heard. Hand in hand with the drop-off in all-cash buyers is the larger pool of prospective mortgage brokers and banks are competing for this business.
Despite tougher lending guidelines put in place after the Spring frenzied market, banks are looking to use mortgages as a vehicle to attract new depositors to their banks. Besides offering incredibly cheap money, many banks are still tight on their lending and focusing on the relationship with the client to determine their appetite for loans. Whether it is an issue with the borrower’s credit history or income, banks are taking a broader look at the overall economy and a common sense view of the safety of the loan.
We will continue to keep you up to date on recent happenings and trends in the market. We hope that you find this informative and useful and, please, as always, reach out with any questions on how you can take advantage of these current trends or how to protect your real estate assets.
Also, feel free to reach out with any questions regarding a specific trend or segment of the market. We are here to serve your family, friends and neighbours.
Karen Paul & Associates | Real Estate
Ontario Is Our Game ~ Come Play With Us
905-333-6234 | karenpaul.com | email@example.com
Burlington • Oakville • Hamilton • Milton • Niagara
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