Bank of Canada maintains the target rate of 1% in the last report. The real estate investment also to slow down further from the first quarter and household spending to decline. Furthermore, the trends for Real Estate and Investments are to continue for 2013.
Galaxy Gate market research center indicates a further decline in the Canadian Real Estate market is due to the inflated housing market and historically low mortgage rates. The real estate market few years back, started to pick up pace with the zero down. During these times, investors, First-time home buyers and new immigrants took opportunity to buy. This resulted in a momentum which took real estate pricing to a whole new level. In the larger cities such as Ottawa and Toronto, we saw bidding wars with sold price more than 20% higher than listing price. Galaxy Gate market research center indicates a slowdown in real estate investments in 2013, as the pricing has increased to record levels, low inventory nationwide and household spending decreasing. The slowdown of real estate sales is to continue for the next two to three years.
Galaxy Gate Market Research indicates this trend to continue for another two to three years. Therefore, for Realtors, it will become more challenging to acquire listings as competition grows, for sellers it will become a challenge to get that high sold price due to lack for qualified buyers. Galaxy Gate suggests Sell, List and Buy carefully and acquire services of a Licensed Realtor a real expert in your area not just a good marketer.
Galaxy Gate suggests to Sellersto list their properties with a licensed real estate professional, an expert in their area. The Realtor should have a strong understanding of the area and clear vision for listing the property. The change in mortgage trends and slow down of the real estate markets across Canada has changed how you would Sell your Investments.
The mortgage trends and real estate markets will continue to change and it will become more challenging for sellers as certain elements from the last years have ended. For the most part, we don’t see too many bidding wars for one listing, the price increases of listings after a comparable sale in neighborhood and a high inventory of listings in MLS.
Galaxy Gate provides necessary training and education for Realtors and have offices opening across Canada to service all Sellers and Buyers.
Barry Kainth, Broker
President and CEO
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