For those who take the headlines at face value, the real estate market has undergone an absolute roller coaster in the past few months. We've been hearing threats of unsustainable growth and a bubble that's ready to pop, unscrupulous sellers and their agents who have manipulated bidding wars to extreme heights and now... Eeek, it seems that the prices are falling.
In reality, home sales typically slow in the summer likely due to a number of factors, such as the sticky weather, family vacations and the fact that very few people want to move during the first few weeks of the school year. Add to that the new mortgage rules and we are seeing the market moderate a little- Something those of us in the business have been expecting to happen eventually. Far from a crash, a bit of equalizing could be excellent news for the market.
The Globe And Mail ran a great article this week which outlined five great reasons why a small decline in house prices could be very good news. Topping the list is the fact that this may give many first time buyers who have been discouraged by the number of multiple offer scenarios last spring, a chance to finally break into the market. Also on the list was the suggestion that this could lead to more rational transactions and negotiations. Without an auction mentality, it is easy to reason that more buyers will feel good about their purchases in the years to come.
Our housing market is still strong and steady, as is our economy. If housing prices see a small correction overall, it will likely increase overall confidence in our market and subsequently long-term strength.
