"Low Levels Set Stage for Heated Spring Market" says ReMax
ReMax has released a report today that states "the lack of inventory will be the greatest challenge facing housing markets across the country".
After examining the ReMax Market Trends Report for 2010 it was declared that there was an unusual amount of activity in one of the quietest months of the year. This has led to a decline of active listings in 81% of real estate markets across Canada. ReMax states that the lack of listings may be from the rules that the Government has placed regarding, higher interest rates, new mortgage rules and the new HST (Harmonized Sales Tax) in Ontario and British Columbia. These 3 new criteria has caused an unprecendented increase of purchasers.
The Executive Vice President of ReMax Ontario Atlantic Canada, Michael Polzler has commented on this change:
"There have never been so many motivating factors in play at once. We're in for a heated Spring market that will, in all probability, spill over into the summer months, as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies."
Toronto and Kitchener-Waterloo has experienced the tightest inventory levels. Toronto down 41% and Kitchen-Waterloo down 33%.
Buyers and sellers are taking advantage of these favourable conditions. The competition for offers and well-priced listings are in the marketplace again. The properties that are priced-well will likely sell for top dollar. This pressure on selling and pricing will not decrease unless more inventory comes into play.
The market is in a good place this year than last - it has made a 180 degree turnaround.