Market Update

may 2012

The April Real Estate market was really interesting. It was a market dominated by rising inventory levels. Sales activity and average pricing was much less predictable, and showed great variation from market to market. Typically, we would relate this rising inventory and inconsistent sales activity with a market shifting towards the favour of buyers. This year we have one primary factor that at play, and that is mortgage rates. Based on conversations with several of our contacts higher up in the banking world, mortgage pre-approval applications are flooding in with prospective buyers drawn to the low rates. As the banks typically see buyer trends 30-60 days before they become real world buyers, I would not be at all surprised to see a wave of buyers jumping into the market before Summer. It makes sense... Low rates and a rising inventory makes for a great buying opportunity if you choose your spot.

In this month's stats, we have included a comparison to show year over year change in addition to the month over month numbers we typically show. We think it adds an additional perspective that is quite valuable. Let us know what you think…

Ben