What's happening in the Real Estate market?

Supply of Real Estate

1. Given the interest rate hikes, demand for pre-construction has fallen. Builders are pushing out project releases awaiting demand to come back up. Overall, projects aren't selling at the same pace as last year.

2. Amount of listings continues to trend downwards. Unless sellers are under pressure due to prior purchase commitment or exposed due to interest rate hikes, most are holding off or instead renting out.

3. Amount of assignment sales has exploded - most investors have multiple pre-construction bookings. They are trying to off-load with little profits. This is where the value is today!

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Demand of Real Estate

1. Given the current high-interest rates and anticipation of another hike, buyers are holding off.

2. First-time buyers have a great opportunity to purchase real estate but purchasing power has gone down significantly due to high-interest rates ( payments have almost doubled)

3. Investors are also holding off, to ensure they can manage existing properties at new interest rates.

4. Immigration backlog and quota fulfillment for job shortage continue to bring new occupants. This has led to ~20% increase in rent.

5. Given low inventory, multi-bid scenarios are starting to show in certain cities but still falling short of the seller's expected price points.

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Market

1. The interest rate continues to shift, FED just increased the US interest rate by 75 basis points. Canada is expected to follow suit.

2. IMF hinted downward economic outlook with potential recession ahead.

3. Companies are releasing below-expected results, layoffs and hiring freezes are starting to happen.