Finally it is Buyers Market in Canadian Real Estate

Aug. 16, 2010 - PRLog -- http://www.WorldWealthBuilders.com

Home sellers are facing lot longer period to sell and rare offers on their properties. “Buyers and sellers should consult with a Realtor to find out about conditions in their local market or doing their own due diligence” says Navtaj Chandhoke of World Wealth Builders.

Home sales have fallen 25 per cent since reaching a peak at the beginning of the year as demand slows and more houses come onto the market. Declines in British Columbia (-14.1 per cent) and Ontario (-8 per cent) accounted for 85 per cent of the change in national activity in July. A slowdown in demand in these two provinces had been widely expected in July, as many purchases were brought forward into the first half of the year in advance of the introduction of the HST.

“Greed and lack of fundamental  knowledge of investing in Canadian Real Estate will cause major losses for Canadian speculators as the market changes” Says Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada.
Speculators will be rushing down to unload some Real Estate out of their portfolio.
Home buyers are very quick to adjust to a down market and Home sellers are very slow to adjust to a down market. Home sellers stubbornly hold onto their perception of what their home is worth, whereas Home buyers are looking at inventory and market trend.


Seasonally-adjusted home sales fell 8.2 per cent in June from the month before and shrunk 19.7 per cent compared to June 2009. However, the average Canadian home price sat at $342,662 compared to $326,689 in 2009.

It's Home buyers' market, where there is lot more listings on the market than sales that Home buyers have some bargaining power and Home sellers are more willing to ease up on price, that we would see prices actually falling. The longer it takes to sell the property the chances are reduction in prices. Why? Because there is lot more inventory. Demand and supply will dictate the prices.

Home buyers are becoming more aggressive in negotiations and taking their sweet time before making  an offer.  Home sellers and speculators  are beginning to accept less than asking price for their properties due to poor demand and lot more inventory.

Now fewer Home buyers are shopping for homes just as more listings flood onto the market. That has shifted the housing balance away from the seller-friendly market into Home buyers' market. Meanwhile, Home sellers have become accustomed to receive multiple offers and above asking price  want to hang onto their properties. But the time is not in their favor anymore.

The average price of homes sold via Canadian MLS in July was $330,351, edging up one per cent from the same month last year. Average home prices eased slightly in Nova Scotia and Prince Edward Island in July, but gains in every other province exceeded the national increase.

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