As we approach the holiday season, it's a good time to reflect on the year that was. A ferocious January lead us directly into a hot seller's market. Almost zero supply and very tempting interest rates created a situation that we haven't experienced in many years. Working with buyers seemed like a complete guessing game frenzy and representing sellers was certainly a job for the qualified. Fast forward to December and here we sit - a calmer, more manageable market looks to be what we are closing out the year with. Not nearly as many multiple offers and more opportunities to fetch a deal but alas, our inventory still remains at a surprising sub 2 number across the board. Yes, the bank has raised its benchmark rate six times since March, as it scrambles to rein in inflation, which has run up to its highest level in decades but oddly enough, we haven't seen the same slow down or negative market impact as our friends out west, east or even down south.
Anytime you have an absorption rate [months of inventory] around 1.5 - 2.0, it means that we are in a very healthy and balanced marketplace. If we start to see those numbers climbing to 3.0, 4.0, or more, then I would start to be more concerned if you are someone wanting to sell or exit a property. Higher inventory levels signal more competition and of course, less demand for the product.
For 2023, I expect more of an even keeled, steady market from our perspective as experienced Realtors. Those of us that have been in the business for over 15 years know that cycles come and go. As we gain more exposure these ups/downs, we can also start to predict or feel when the tides are turning. This is how we are able to stand above the crowd and truly represent our clients in the best way possible and with the most sound advice. I see this year continuing to be strong for sales across the board. Detached, attached, townhomes + apartment style condos are still moving when priced well and for the first time in years, there isn't one sector of the market showing more strength or weakness over the other.
There are always a lot of moving parts, so don't ever hesitate to reach out to discuss your personal real estate goals. Everyone has a different aspirations + timeframes so please know that I'm never too busy to chat about what you have going on and what you want to make happen. Fill out the form below if you wish to chat in the new year.
Always here for you and cheers to 2023!
Joel Gwillim | 403 999 8610
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