Over the last couple of years, market conditions have been tilted heavily in favour of sellers. But with Canadian housing market conditions expected to shift this year, you may be wondering, what is a balanced market? Let’s explore recent history, and what this recent change means for you.
At the height of the market during the pandemic, many Canadian cities experienced skyrocketing home prices, from single-family residential properties in major urban centres to townhomes in rural communities. In the process, prospective homeowners also had to endure intense bidding wars, causing some buyers to ditch conventional homebuying best practices, including home inspections. During this time, the Canadian real estate market transformed into a seller’s paradise thanks to historically low mortgage rates. But now that the Bank of Canada (BoC) is on an inflation-busting crusade of raising interest rates and trimming its enormous balance sheet, Canada’s housing industry is witnessing a moderation, and many regions are expected to (or have already) moved toward balanced market conditions. So, what is a balanced market, exactly? Let’s dive deeper into what the current real estate market looks like for buyers and sellers.
What is a Balanced Market?There are three types of real estate markets that everyone needs to know:
- Balanced Market
- Buyers’ Market
- Sellers’ Market
- Stable residential property prices.
- Homes are sold at or near the asking price.
- The number of sales matches the five- or ten-year averages (or between 45 and 90 days).
- Transactions occur within a reasonable time span that is neither too long nor too fast.
- For nearly a year now, the national housing sector has been inching toward balanced conditions.
- Economic trends: inflation, unemployment, and the GDP growth rate.
- Greater Toronto Area (GTA), Ontario
- Mississauga, Ontario
- Winnipeg, Manitoba
- Regina, Saskatchewan
- Edmonton, Alberta
- Greater Vancouver Area, British Columbia.
- Halifax, Nova Scotia
- Montreal, Quebec
- Ottawa Ontario