Home sellers to play waiting game
Written by Grainne Burns
Home sellers may delay going to market as the pendulum is set to shift in their favour this spring, according to a new Royal LePage survey.
As house prices are expected to maintain a healthy momentum into the first half of 2014, market experts are anticipating a shift to a seller’s market.
“In the absence of some calamitous event or material increase in mortgage financing costs, we expect this positive momentum to characterize 2014. In fact, we expect a market tipped decidedly in favour of sellers for the first half of the year, after which we project a shift to a more balanced market,” says Phil Soper, president and chief executive of Royal LePage.
The agency says the average price of a home in Canada increased between 1.2 per cent and 3.8 per cent in the fourth quarter of 2013.
“Talk of a ‘soft landing’ for Canada’s real estate market in the new year is misguided. We expect no landing, no slowdown, and no correction in the near-term. Conditions are ripe for as strong a market as we saw in the post-recessionary rebound of the last decade,” says Soper, adding that they do not expect the government to implement any market intervention, such as a hike in interest rates.
The survey showed year-over-year average price increases in the fourth quarter of 2013 of 3.6 per cent to $418,282 for standard two-storey homes and 3.8 per cent to $380,710 for detached bungalows, while the average price of a standard condominium rose 1.2 per cent to $246,530.
Source: Canadian real estate magazine