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Putting the real estate market into perspective – Toronto Sun

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Dramatic predictions of an impending real estate crash appear to be greatly exaggerated

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In so many ways, we rely on the media to provide us with information about housing markets in this hectic world.

Readers and viewers, however, should look at the big picture and put news in perspective. We hear a lot about rising interest rates and the slight slowdown in the housing market, including dramatic predictions of a crash. This is all greatly exaggerated.

The market is strong and more balanced than it was last year, especially in pre-construction. Where a home may have had 20-30 offers, agents are now dealing with 2-3, which is a healthier scenario and far from the buyer’s market some are predicting.

The current situation is far different from 2008. Even then, there were deals to be had in good neighbourhoods where prices didn’t drop and in fact, came back some months later with a vengeance.

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There is no doubt that some buyers have been driven out of the market, which is expected whenever interest rates move up. But the outlook is far from gloomy.

The lack of supply in the face of significant and ongoing demand has potential purchasers waiting for new choices to become available, and our clients are working hard to provide those homes and condos.

Another thing is that nowadays, we’re enjoying historically low interest rates, and people are realizing that minor rate rises aren’t the end of the world.

Even if rates increase a point or two, it does not make a large impact on carrying costs. In pre-construction sales, purchasers have years to close, so they are more comfortable with rates. In effect, they are buying for tomorrow, not today as in resale.

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We know of some potential buyers sitting on the sidelines for 10+ years waiting for prices to drop. Imagine the equity they could have earned if they bought back then!

As for sales, it’s like the market is taking a breath. We need time for the investor pool for both resale and pre-construction to replenish itself after the frantic drive of the past couple years. If you are interested in investing, don’t expect to flip a property quickly.

Savvy investors are in it for the long run – at least three to five years. Although the investor market in pre-construction condominiums is still robust, we’re finding more end-users now for low-rise.

Despite media hype, smart buyers avoid panicking, thinking they overpaid and trying to back out of deals. This isn’t the time to walk away, especially with pre-construction. In that amount of time, prices may increase a lot.

Real estate is a cyclical industry, and this is an example. We are still selling homes and condos at a sustainable pace from Toronto to the Niagara Region. From our perspective, the media are exaggerating what’s happening in the market, when in fact for new construction, all systems are go!

Michael Klassen is the broker of record and partner at Eleven Eleven Real Estate Services based in Toronto. Visit www.1111realty.ca.

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Real estate markets slow in most nearby communities – Calgary Herald

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Slowing demand and rising supply in outlying communities like Airdrie have set in along with cooler temperatures of late summer, recent data shows.

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Calgary Real Estate Board statistics from last month show sales falling year over year in most communities while supply is rising.

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“In all those markets, we’ve seen improvements in inventory,” says Ann-Marie Lurie, chief economist with CREB.
“Still these markets remain quite tight, but we are seeing some price adjustments and that’s because they came up so high during the pandemic.”

Airdrie is the largest and most in-demand market with the highest sales last month, 169 transactions, down almost eight per cent year over year. Still, the community saw inventory rise more than 10 per cent with now more than 1.69 months of supply, an increase of nearly 20 per cent from last year.

Other communities have also seen sales fall and supply rise. These include Cochrane, which had 75 sales, down about 17 per cent from August last year. Its supply is now more than two months, up about 26 per cent year over year.
Okotoks had 53 sales in August, down about 19 per cent year over year while supply grew to more than 1.8 months.

Despite falling demand and growing supply, prices still grew year over year in these communities. The benchmark price in Airdrie increased almost 19 per cent to $493,500. In Cochrane, the benchmark price grew by more than 16 per cent to $517,400 while the benchmark reached $549,300 in Okotoks, also an increase of more than 16 per cent.

Chestermere saw the biggest drop in sales year over year at more than 48 per cent.

Only High River experienced a slight increase in activity with sales last month up 2.5 per cent versus the same span last year.

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Spotlight: Making sense of the current real estate market in Newmarket – NewmarketToday.ca

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Buying a home at any time is a huge undertaking. It requires a lot of preparation, time and access to expertise.

Homeowners—and those who wish to become one for the first time—have it even harder right now, with conditions seeming to change from month to month.

REALTOR® Dave Starr specializes in home buying and selling in Newmarket and the surrounding areas. With over 35 years of experience in the real estate industry, he is happy to share what he’s learned with others.

Slowing things down

So how would he describe the current state of the market in Newmarket? “It’s finally more normal and realistic,” he says. “A prospective buyer has a little more breathing room to make sure that their financing is in place and they can also consider a home inspection.”

A seller will benefit by working with a more seasoned agent, he says, because they have had prior experience with similar markets. He likens the situation to a professional athlete who has played in the playoffs before or competed in a large-scale event like the Masters in golf.

Earlier in the year, the market was not realistic.

That tended to leave buyers, sellers and agents scrambling. “The end result can be a situation with buyer’s remorse, where the buyer no longer wants to close on their purchase. The banks sometimes struggle with appraisals, which can also result in a non-closure,” he says. “In the fast-paced market that took place earlier, some agents potentially made more mistakes, especially since they weren’t experienced enough to handle multiple offers.”

Home inspections and interest rates

While some homes may not require a home inspection, there are lots that definitely need one. “In an extremely busy market, buyers could potentially end up with an unwanted surprise—at a great expense,” says the REALTOR®.

He likens it to the necessity of having speed limits on our roadways. The faster you go, the more chances you have of getting into an accident.

“We are now facing an increased mortgage rate, which many would not like to see, but the truth is it will help balance the market overall. Lower interest rates basically were one of the reasons for the inflated house prices and homeowners were simply taking on larger mortgages than ever,” he says.

For years many homeowners would tell him the same thing: that mortgage money was cheap to them. His answer to that never varied: “You do know you have to pay it back at some point.” If the rate were guaranteed for a lifetime, it would be a different story, but of course that’s not the way it works.

The market over the summer was slower but typical; that has become the norm over the past few years.

The fall market is already starting to pick up, with increased activity, though the number of listings in Newmarket is quite low. Rental availability is both quite expensive and experiencing a shortage.

Says Starr, “The market moving forward should remain stable. Buyers and sellers will have more time to make the best educated decision for their needs and wants.”

Whether you’re a buyer or a seller, he welcomes any calls or emails.

Let Dave Starr Real Estate help you make your next move. Call 416-520-3231 and get the Starr treatment you deserve.

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Commercial Real Estate Sector Faces Risks as Financial Conditions Tighten – International Monetary Fund

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Commercial Real Estate Sector Faces Risks as Financial Conditions Tighten  International Monetary Fund



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