Monday, October 24, 2016
Changing Real Estate Market
Ferry describes this as the "perfect storm" brewing: "The days on market is extending...Sellers are very unrealistic on pricing due to the four-year upward swing in the market...There are more FSBOs and Expireds, you have properties overpriced...Agents are not responding to the conditions of the market quickly enough and are overpricing properties...We have a possible interest rate hike [at the end of this year]...and then, just to make the whole thing more fun, we have a US Presidential election taking place..."
Canadian markets have been hit hard due to the change in energy prices affecting the Calgary-Edmonton market, the foreign investments tax in Vancouver, and overbuilding in Toronto.
While Ferry considers this a part of a normal real estate cycle, investors would be well-advised to prepare for this change.