April Market Review

The calendar has turned to a new month, and with the close of the first quarter of 2023, March has brought us into April.  This is a time when we should see an uptick in the real estate market, preparing for the spring and summer sales.

Comparing April 2023 to the same month last year, sales are 5% lower this year, and selling prices are down 7%.  This is interesting because one would have expected the selling prices to be reduced more than the statistics show.  Nonetheless, the selling prices are still lower this year, and there are fewer properties being offered for sale.  Another factor is the continued higher interest rates offered by lenders, which tends to discourage buyers from investing in properties.

At the same time, we are looking at the statistics for March of this year and seeing how they look next to April.  The good news is that the average sale price is 4% higher in April than it was in March.  This is despite the fact that days on the market still remain higher than last year.  It seems that sellers’ patience is paying off.  With fewer properties available, this also means the seller is more likely to have an advantage. 

How Higher Interest Rates Could Affect the Real Estate Market and Limit Buyer Options

This could also mean that buyers are tired of waiting and are willing to bite the bullet on higher interest rates to take advantage of good real estate while it is available.  It is important to consider that with higher employment, fewer people will feel the need to place their home on the market in lieu of less expensive housing.  This will result in fewer sales signs in yards.  If sellers are reluctant to place properties on the market, buyers will have fewer choices when it comes to solid structures or good neighborhoods, which will leave less desirable houses to select from.

Realtors, appraisers, and others involved in the industry are still concerned.  The market can adjust itself in either direction, and the experts are waiting to see how the next few months play out.  Some of the things they are looking at include the job market and inflation.

Employment is starting a come back with the latest round of job creation efforts.  If the labor market continues to be steady or even increase, this provides more buyers that will qualify for the mortgages to snap up valuable properties.  Inflation is still with us, although it may be slowly creeping downward.  The Bank of Canada is not yet satisfied, and they have not released the interest rate pause, so it remains in place.  The Government will have tough decisions to make.

If you have been sitting on the fence waiting to see what happens, you may want to consider moving ahead while there are still advantageous properties around.  Working with a mortgage broker like easyhouseloan.ca, you will be able to shop for the best interest rates and purchase that home you and your family need or invest in income property that will provide another level of security.