Home > real-estate > Most asked housing related question…

Most asked housing related question…

Surprise…Where are house prices going from here?!?!houses should drop unless builders adjust their prices down to reflect the savings they incur

My take – Demand vs Supply 

Houses are selling below list price a.k.a. no bidding wars 

I have been talking to realtors at open houses for the past couple months and their unanimous verdict… market is slowing 

Price Increase is slowing…demand is easing
The month-over-month increase in prices is trending down… which goes against seasonality… spring/summer is the busiest time for housing activity 

 

More houses to choose from…& Fewer Sales 

Sales to Listings Ratio is trending down i.e. there are more houses for Sale and of those, fewer houses are selling… see the red-line trending down in this chart 

 

HST Kicked-in…demand slowing
Most economists predicted demand pull in the first half of 2010 due to HST… if this were to hold true, demand for new houses should drop until builders adjust new home prices (downward) to reflect effects of HST… 

In Part II I will try to focus on housing affordability 

Update: Don’t forget to read a summary of the mid-year forecasts from CREA & CMHC https://takloo.wordpress.com/2010/07/30/a-tale-of-two-housing-forecasts-cmhc-vs-crea/ 

Chart Source: CREA
http://creastats.crea.ca/natl/

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