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The Rapid Return to Normalcy

A real estate market sift?
Posted: August 03, 2021 by Stephen Oliver

Recently a colleague of mine presented me with some stats that showed the sales for July 2021 vs July 2020. The stats aren’t very telling nor they very surprising. For those in our business or those who were in the market during 2016, we saw almost the same thing. The rapid return to normalcy is upon us in the local housing market.

Over the next little while you’re going to see stats, stories  or even headlines that will be designed to get a reaction about the position of our market. Don’t be alarmed about what you’re about to see or read in the coming weeks. When we look at stats we look at things like five and 10 year averages compared to the current market as opposed to month over month or year over year statistics.  While the shorter term market statistics have their place, they really don’t tell the story of what the market is actually doing.   Looking at the market as a whole as opposed to a market at a volatile point in time which is what we have seen over the last 18 months will always give you a better picture. 

Let’s face it, the pace which real estate was selling over the last six months was unsustainable. Market values couldn’t keep climbing at the rate they were going, sales couldn’t continue to happen in five days, and everyone involved in the process was eventually going to have to take a step back, take a deep breath and reassess what has been happening.  

No one can predict what is going to happen over the next few months. CMHC, The Canadian Real Estate Association and economists at banks are all likely trying to understand the market influences that created what happened in the first quarter of this year.  You will hear tag lines like; supply and demand, shortness of inventory, Covid-19 influences, low interest rates and on and on.  All are likely contributing factors to the market pressures that we have seen across the region, province and country.  But no one can determine what is going to happen moving into the fall market that is usually busier than the summer months. 

The best piece of advice it can be given to both buyers and sellers alike Is to assemble a trusted team advisers to assist you through the buying and selling process. Their advice should come from a position of experience and understanding. They will have your best interests in mind and will help you navigate what is going to be a confusing period in the housing market. 

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