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Because of falling house prices, some buyers have regretted the frenzied bids they made during the housing frenzy earlier this year, according to Globe and Mail.
Claire, an economist at Royal Bank of Canada RBC. Claire Fan says housing demand across the country is cooling rapidly, moving from a more seller-friendly market to a more balanced area.
Fan pointed out that the slowdown in June was particularly severe in the regions with the strongest and highest prices during the pandemic.
In Toronto and Vancouver, markets have proved more sensitive to central bank interest rate hikes because average house prices are higher and home loans are larger.
New listings were still quite strong in June, while demand fell sharply, which led to a decline in new home sales in all regions, she said.
In the Duran district east of Toronto, there have been stunning price increases over the past few years.
At the beginning of the epidemic, detached houses in family-friendly communities were relatively affordable.
However, due to the continuous increase in the number of days on the market, the phenomenon of forced price reduction is becoming more and more common. This rapid shift has unnerved some sellers.
Real estate company Coldwell Banker R.M.R. Shawn Lackie, a broker, said inventory was unusually low last June, at 712, compared with 1414 last month.
Lackie says the initiative has now returned to the buyer.
He advises sellers who are about to enter the market to be patient in accepting any offer.
“your first offer is usually your best offer,” he said. “even with conditions, talk about it.”
Nowadays, home buyers often offer house inspection and loans as conditions to quote contracts, which gives them time to think about it and either finalize the deal or withdraw.
Lackie now has every transaction checked by a lawyer.
“it’s common sense that if something goes wrong, at least we have a lawyer involved in the first place.”
