Ok so it's June. That's according to the calendar not the thermometer. As I write this it's pouring rain and 8 degrees. Oh well, you can't control, the weather.

 

Back to real estate. CMHC predicted not too long ago that our local market would experience a price increase of about 8%. I don't know where they got their information, maybe they were just relying on past performance. It has just not happened. If anything prices have softened somewhat. The upper end of the market has definitely softened. This is due largely to increased supply. Demand has been good but supply has been through the roof in some price ranges and areas. Westwood Plateau is an area that has seen scads of new listings hit the market. The end result is a softening of prices in that market.

 

Increases in supply have the effect of slowing the market down as buyers see that they have selection and time. The net effect can also be an increase in collapsed deals. Instead of buyers feeling lucky to have secured a property and removing subjects/conditions joyfully they are bolting from deals at the least sign of trouble.

 

What is the bottom line? Your house might be worth a little less but you will have a great time buying your new home.