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February 2012: Here We Go Again...
Posted February 26th, 2012 under market updates.
Just like 2011, the new year has started with a shortage of listings. Though the number of new listings is 15% higher than it was at this time last year, we are still far below the numbers we need.
We've also had another milestone: a sales-to-listings ratio of 57% for January, the highest ratio for January in over 15 years!
This high ratio added extra upward pressure to prices, causing an average jump of 2.2% across all categories in January. That's equivalent to an annual increase of 26.4%!
With interest rates remaining at their all-time lows, these trends will certainly lead to an unrealistic price structure, and something will have to give very soon.
My prediction is that we will see a levelling-off of prices in the near future. This will depend on whether the price pressure caused by the listing shortage continues.
If you're considering a move, now is a good time, especially if you're moving up in price. March and April are traditionally the peak of the spring market.
Want to know more about the state of the market? Just ask me, I'll be happy to help.