Do you hear the crickets? After a spring/early summer market like no other in the Quinte region, with rapidly increasing prices and bidding wars on most properties,.we have finally reverted back to a more balanced market. Why the change? Several factors are at work. To begin, the supply of available homes on the market have increased. During much of the spring, there was a severe lack of inventory. Secondly,. fixed and floating interest rates have increased reasonably substantially since June. But perhaps the biggest impact has been the rapid cooling of the market in the GTA. Close to 40% of the buyers locally in the spring were represented by out of area agents, a phenomenon that has nearly ground to a halt. With prices having softened as much as 17% from the peak in March, the era of Torontonians using their homes as virtual bank machines may have finally come to an end. Which is a good thing.
Perhaps the best thing that could happen to the local real estate market is a 10-20% drop in prices across the board. This would not only help out first time buyers, but also families looking to trade up. It would also help push out the marginal players in both the real estate and mortgage business, many of whom were giving disastrous advice to their clients.
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