The prediction for 2014 is that we will experience a seller’s market in the 1st half of the year, followed by a more balanced market in the 2nd half of the year. According to Phil Soper, President of Royal Lepage;
“We predict continued upward pressure on home prices as we move towards the all-important spring market. In addition to normal demand, housing prices in Canada this year will be influenced by buyers who put off purchase plans in the very soft spring 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.”
Falling interest rates, will also increase demand in the market. Affordability coupled with an absence of sufficient listings to satisfy demand should put upward pressure on prices to the delight of sellers. As more homes come on the market, midyear, expect prices to cool down and level off for the back half of the year.
While home sales this spring are anticipated to bring record highs for Rockwood, unfortunately this is not a “carte blanche” for sellers.
Properties which are tastefully renovated and in good condition will be the hot properties. However, buyers will still consider purchasing and renovating to taste if the asking price plus the cost of renovation is within the market value of the neighbourhood.
*Please note this article was originally published in the Spring 2014 edition of The Rockwood Times.