Both listing activity and sales activity picked up in April, although I caution the momentum in sales activity was not felt across the board property wise. So, things are still a bit tricky out there.

Inventory of properties for sale is 70% higher than last year – which is significant – so I will be keeping an eye on this trend as we progress through May. Keep in mind inventory was quite low from a historical standpoint last year at this same time period.

But if new listings continue to outpace sales in May, this will impact the market and may even put downward pressure on some segments of the market.

Average pricing has increased month over month, but again I must state that some higher end sales can distort the stats somewhat. Some parts of the market are seeing real price gains, while others remain stagnant or continued downward price pressure (i.e.. newer 2 storey builds).

A few interesting observations to note. The upper end of the market seems to have come alive a bit. In fact, we even had a few multiple offer situations over $1.4 million. And a number of homes that lingered for extended periods unsold in 2023 have now sold, so that is an indicator of an improving market.

But again, while certain homes get interest from multiple buyers, a number of listings continue to sit with limited activity. Pricing is a factor of course, although not quite as straight forward as that. Buyer activity just hasn’t returned across the board in our market yet.

There has been a lot of commentary on all the housing announcements made by the federal government over the past few weeks. I’m going to keep my opinion short.

Largely I view all the announcements as a “nothing burger “. None of the initiatives, even if they are actually implemented, will move the needle on significant new home building activity or affordability. I’ll leave my comments at that. Feel free to share your thoughts with me at gmochrie@mvrealestategroup.ca .

Odds are we will see our first quarter point interest rate reduction in June. Maybe. Not enough to improve affordability much, but psychologically it may instill confidence in more buyers to enter the market.

Will the current momentum in the market continue to build throughout 2024, or will things pull back a bit? That is the question still to be answered. We shall see. May and June historically are busy real estate months, so I encourage sellers to list soon if you are thinking of selling in 2024.

While the market is definitely showing signs of improvement and we are seeing price gains in certain segments, some sellers continue to get ahead of the market with respect to their optimism – and will have to make some downward amendments in their pricing for their home to sell.

Such is the nature of what I referred to at the outset as a tricky market.

Thinking of selling or just looking for real estate advice? Feel free to call me anytime at 519-766-3716.

Until next month, take care.

George
Direct: 519-766-3716