As we enter a traditionally slower time of the year in the world of real estate, wintry weather and holiday season that is, it is not too surprising that activity is sluggish as they say. The market tends to wind down by the end of November, and hibernation mode kicks in for most come January until at least February 1st. Of course, the market is shockingly different from how it was just a little under two years ago. Back then there was never a dull moment.

But we are back to a more normal and balanced place now in the world of real estate. Conditions have become more favourable to those looking to purchase, and with months of inventory hovering still around 5 %, we continue to be in a buyers’ market for the second month in a row. (The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity) Overall, home sales are down once again, 17% from the same 11-month period in 2022, and we saw a 15% increase in listings from a year ago November, according to the KAREA stats.

That increase in inventory is a positive change, as those buyers who have been searching for some time, now have more options. There are more opportunities in general if you have need to move, or if you are simply wanting to make a leap towards a new and exciting place. As I expressed previously, there is also less pressure at this moment. More ability to take the time and make thoughtful, well-organized plans and decisions. At this moment, it seems to be the perfect opportunity, as it traditionally is, to focus on planning and preparation for the year ahead.

On November 21st, the Government of Canada also released its 2023 Fall Economic Statement. It without surprise, focussed a great deal on the affordability and supply crisis. At the core of its plan are increased funding for more affordable housing and purpose-built rentals, along with new measures for financial institutions to provide mortgage relief options. I believe there is a way forward that remains positive and productive, but it is going to take a lot more effort and sound management to prepare for the roads that lie ahead. Currently, it is a good beginning, but more honest dialogue is key to ensuring we are making sufficient progress and including all the additional infrastructure needs that go along with ensuring everything and everyone is cared for.

Overall, things have not changed much in the last month, and I assume things will remain similar for the next few months ahead until the sun starts to shine. There aren’t any crystal balls for the future of course, but all signs point to an easing in interest rates come spring. Spring always brings brighter, warmer, and clearer skies. By the years end the horizon may feel entirely different again. My bet is in a brighter way.