Welcome to a new decade! Let's hope for things to improve.
Prices are essentially flat year over year. Detached 2-storey homes for example sold for and average price of $1350000 down slightly from January 2019's $1356000. 2-storey selling prices had gone up to $1374000 during the 4th quarter of 2019 so there was positive price movement in 2019. The average time it took to sell a home was up 3 days to 42. Also not that many homes were (sold) closed this January compared to last January. However, a number of homes sold during the month that will close over the next few months. In many cases these homes were relisted at lower prices after being on the market for several months last year at a higher price and not selling. So it is nice to see the new life in the market this year. There were 56 pending detached 2-storey homes sold in January 2020. 51 sold over $1000000 and 14 sold over $2000000.
Volumes are still low, as is inventory/supply but we are starting to see more homes come to market. Not surprisingly when a home that appeals to the masses comes along we see multiple Offers.
I expect the market to become more active with more listings and sales. There are alot of buyers shopping around. You see them when a new listing hits the market, when you are out showing a home and another agent is also showing the same home at the same time, and at open houses. It looks like this Spring and the months leading up to it will be very busy.
On the rental side there were 97 sales closed in January compared to 174 a year ago, down 80%. Given the overall low sales volumes that is still a healthy number. In a few instances the owner was unable to sell a new luxury home and had to resort to renting it out until prices increase.
Interest rates are still very attractive and low. Banks are offering 5 year rates not much higher than shorter term money (about 30 basis points) which tells you they are not foreseeing any immediate major increases to the prime lending rate and are looking to secure more longer term mortgages to increase their profit margins.
