3 Signs of a Shifting Real Estate Market
Sunday Jan 07th, 2018Share
How will we know when the real estate market shifts? Here are three obvious signs.
There are three key indicators that tell us when our real estate market is shifting or going through some kind of transition:
1. Any increase in the average days on market. If you start seeing open house signs weekend after weekend at the same properties, that’s a good sign the market is shifting.
2. An increase in the listing inventory. When demand exceeds supply, prices are typically driven up. If there are more and more listings for sale, that’s a sign that there aren’t enough buyers to replenish the inventory and we’re trending away from a seller’s market and toward a buyer’s market.
“Even a 1% increase in rates will price buyers out of this market.”
3. An increase in interest rates. We know that real estate is primarily driven by the ability for consumers to borrow money, so even a 1% increase in rates is going to price some people out of the market.
Because Toronto is an international city, there are many other factors that contribute to our market. If you’d like to learn more about them or if you just have a quick question, I’d love to hear from you. Give me a call or send me an email today.
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