What is a balanced real estate market?
What is a balanced real estate market? The real estate market has seen a lot of change recently and that means a move toward a more balanced market. Learning about the different market types is important for those seeking to purchase a home. In this blog, I’ll discuss what you need to know about a balanced real estate market.
Sellers have had the upper hand over the last few years, with the Canadian housing market working in their favour. However, this is about to change as we see the market shift away from a sellers market and move into a more balanced market. But what does this all mean exactly?
During the peak of the pandemic a lot of cities in Canada saw price increases in the cost of residential properties. This then created very intense bidding wars and in some cases the home buyers were skipping important steps, such as home inspections. This time period was very much a seller’s market and there were historically low mortgage rates, adding to the intensity.
The Bank of Canada is currently raising the interest rate in an attempt to lower inflation. In turn the Canadian housing market is now experiencing a moderation and many regions across the country, and are now heading toward this more balanced real estate market. Let’s learn more about this balanced real estate market.
The Canadian Real Estate Market
When we talk about a balanced market it’s also important to learn about the other types of real estate markets. There are three, balanced market, seller’s market and buyer’s market. You can imagine what the last two mean, but the balanced market is when the supply, or inventory, is meeting the demand.
Rather than the market being in favour of the buyer or seller, it’s now balanced. The number of people looking for a home is matching the number of homes that are for sale. There are factors that help to determine a balanced market such as stable residential property prices, homes being sold around the selling price, inflation, unemployment.
According to an article by RE/MAX Canada, the areas that are expected to experience this balanced market are the GTA, Mississauga, Winnipeg, Regina, Calgary and the Greater Vancouver Area. There will still be some areas that will continue to be a sellers market and those areas are Halifax, Montreal and Ottawa.
RE/MAX Canada’s outlook suggests that the national average price of a residential property will see a decline of about 3.3 per cent. They also predict that sales will rise more than one-third, or 34 per cent, of the housing markets that they analyzed.
This will be positive for about 54 per cent of the population, says RE/MAX Canada. Those 54 per cent say they have a positive financial situation. This is while 38 per cent of Canadians feel they do not have a desirable financial situation. This is concentrated by those living with a lower income and those that are not currently homeowners.
Contact The VanDinther Team
Do you have questions about the current real estate market? Lori VanDinther and her team are able to help answer any questions or concerns you might have. Please feel free to reach out directly at 905-632-2199 or by email at firstname.lastname@example.org.
If you’ve been wondering what your home might be worth, give out “What’s My Home Worth” calculator a try. You can also find us on Facebook and Instagram, give us a follow and let’s start looking for your next dream home! Our Client’s Success is Always been our #1 Priority!