As the market starts to tighten up,
that could prompt some would-be sellers who are on the sidelines to start
thinking harder about bringing their home to market. They just need to be
convinced that they’re going to be able to find another home that meets their
needs.
That’s been the vicious circle for
years. Owners are fairly confident they’ll be able to sell but low supply makes
them less certain they will be able to find the next home.
The Bank of Canada announced in
January that it would hold its key interest rate steady. That started to give
prospective buyers confidence that borrowing costs would not rise.
Now that more buyers have resumed
their search, competition is heating up again amid historically low levels of
new listings and properties are drawing multiple offers. Although the bids are
not going well over the list price as they did during the pandemic’s real
estate frenzy, that may change if more homeowners do not put their properties
up for sale.