Some highlights from their conversation on June 30th include:
Home prices continue to rise
According to the CREA, the average price of homes sold in Canada in May 2021 was up by 38.4%. While those numbers are slightly misleading (not all provinces have experienced the same increases and Vancouver and Ontario account for much of the rise in price), the fact is that prices have exploded and most people's homes are easily up more than 25% across the country.
- "Months of Inventory"
Considering the term "months of inventory" is very important when understanding the market today. It refers to the inventory on the market divided by the number of sales in any given month. By looking at that metric, we can know if the market is tight, if we're in a buyers market or a sellers, and we can predict what prices are going to look like. Typically in a city like Vancouver, under 3 months of inventory means that we're in a sellers market. We'd need to see inventory levels up at five or six months to experience lower home prices; something we're not likely to see any time soon.
Slower sales doesn't necessarily mean lower prices
Sales have been declining since march on a month over month basis, however the number of new listings is also declining which is keeping the market tightly supplied. It is still a sellers market but despite that fact, we’re not seeing the amount of bidding wars or as much competition in the market as we might expect to see. Right now, there are far fewer showings, fewer offers on offer nights and the market is nowhere near as crazy as it was a few months ago.
Click on the video above to watch the full interview.
John Pasalis is President of Realosophy Realty, a Toronto real estate brokerage which uses data analysis to advise residential real estate buyers, sellers and investors.
A specialist in real estate data analysis, John’s research focuses on unlocking micro trends in the Greater Toronto Area real estate market. His research has been utilized by the Bank of Canada, the Canadian Mortgage and Housing Corporation (CMHC) and the International Monetary Fund (IMF).