Market Update February 2020
Posted by Capital City Group on
Low inventory levels and brisk sales continue to tell the tale of a strong housing market in the region, and we are seeing some indicators of upward pressure on housing prices in the entry level to mid level price ranges.
In January there were a total of 411 sales and 1958 active listings. or a sales to active listings ratio of a hair under 21%. If you've been reading for a while you know that means we're in a seller's market and a seller's market tends to apply upward pressure on prices.
We've talked before about the cycles of real estate in the region and we're heading into the busy spring market. The hot commodities seem to be the condos, townhouses, and single families under 900,000 but as they say, a rising tide floats all ships.
In recent weeks we've started to see some downward pressure on the fixed rate mortgage rates. This seems to be the only factor helping affordability as the measures taken by both the provincial and federal government have done little to improve affordability. Increased inventory will improve affordability. This is basic supply and demand. Hopefully the regulators will see this and make policies to help increase density and inventory levels instead of keeping people out of the market with tools like the stress test.