It's been a chilly start to the new year with the months of January and February feeling the effects of steadily climbing interest rates and stricter housing guidelines put in place last year.
January - 2018 February - 2018
(Remometer readings courtesy of The Dynasty Group - learn more about the Remometer here)
But is this normal for this time of year?
Yes and no.
The average market temps for January and February is 44.9°RM and 57.2°RM respectively. February is starting to break away from the norm this year with an 8 degree differential from the average baseline. Only once in recorded history has the Remometer dipped below 50°RM for the month of February. This is the second time.
Although we are close to halfway through March and the statistics have not been released yet, we can already see a repeat of last year. Bidding wars are taking place again as inventory dwindles and more buyers begin to re-enter the marketplace. The market is heating up again but since mortgage restrictions have tightened up with the buying power of consumers falling, the trend of condo sales outpacing detached and semi-detached dwellings will continue. This should balance out the market as a whole as we have condos heating up on one side and detached dwellings cooling off on the other. With this, the market should in all probability return to a state of normalcy moving into April onwards.