June is the bright spot so far this year
Published Tuesday 20 of July, 2010
June is the bright spot so far this year
June has brought increased activity to the sales market, which should be viewed with cautious optimism. The lower interest rates, along with the reduction in prices have allowed the first-time buyers back into the market. Sales of detached homes more than doubled compared to June of 2008, with attached units up by 22 per cent and apartments down in volume by 46 per cent. However, even with the decreases or moderate gains, when compared to last June this is by far the best month this year.
Where does the real estate market go from here? There are three main elements that determine how the market will react - listing inventory, interest rates and price. Prices are expected to remain the same over the coming months, due in part to the fact that inventory is staying the same or slightly increasing. Also, if interest rates start to rise, this will erode the purchaser’s buying ability, therefore making the buying decision very price-sensitive. A balanced and stable market with increase sales volume can only benefit both buyers and sellers in the short term.