Prices are Down and Delisting on the Rise!

Many economists expected the interest rate to touch 2.50% by the end of 2022.

Potential worst-case of 3.5%.

Anticipation of more increase has resulted in slowdown in the real estate market.

More sellers and hardly any buyers!

Sellers are preferring delisting instead of selling into a falling market.?

In that respect, John Pasalis of? Realosophy Realty gave three points:

1. A lot of homes are not selling at their current price so agents are canceling their current listing and relisting the same home at a lower price.
2. Some owners are canceling their listing and deciding to rent their home if they can't get the price they want.?
3. In some cases, sellers are not getting the price they need to afford the home they just purchased. In these cases the seller will take their current home off the market and try to back out of the deal on the home they just bought.

But that does not mean that the demand has reduced, in actual fact, demand is only camouflaged due to the fear of uncertainty and to some extent finding opportunity for more price drop.

?CMHC Chief Economist who said that " I have trouble believing in a very big price correction. I do not want to say that it cannot happen, but I am just leery of that because of supply shortage."

Previous Property Market Corrections happened in:

Late 1989-Early 1991, 2008, 2017-2018

and now in 2022

Whatever you call it, dip, drop, correction - fact is that property prices are down.

But in actual fact, demand is still pretty much there.??

I expect demand to increase soon. Once we have demand, there will be shortage of inventory and the price escalation will be much faster, and bigger!

My view is simple, since Canada is inviting approximately half a million new immigrants every year for the next three years. They need housing, which will keep the demand intact.

This is the right time to buy your next property.?

At the same time, it is also a good time for the current property owners to assess and re-calibrate their current portfolio mix.

Cost of borrowing has increased, it will impact everyone, but the prices are down, that will even (almost).?

Concluding Remark: Make the best use of the opportunity of lower property prices. Some smart buyers take this as an opportunity to crack a great deal.

What are you waiting for?