Posthaste: Sales dwindle in luxury real estate market — but don't blame a lack of buyers

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Luxury home sales retreated across Canada this past winter as a lack of inventory kept homebuyers on the sidelines, Sotheby\u0027s says. Read on.

The overall drop in home sales isn’t a sign that buyers have given up on homeownership, however. Sotheby’s blames a lack of listings for the downturn in transactions, and says people are ready and eager to get back into the market to find their dream homes.

“A significant cohort of prospective homebuyers and sellers who were reluctant to make a move in 2022 … are now pre-qualified, highly motivated and anxious to find a home that meets their needs and lifestyle,” Don Kottick, chief executive of Sotheby’s International Realty Canada, says in a press release.

That high confidence, combined with pent-up demand, bodes well for the spring housing market, the report says, providing there is enough inventory to meet buyer intentions. Sotheby’s says many sat on the sidelines this winter, in the hope of more inventory coming online in the second quarter. But listings are expected to stay muted, which will likely constrain sales.

“The greatest challenge that are facing is a sheer lack of housing supply across every price point and housing type,” Kottick said. “This shortage is placing a chokehold on real estate markets that would otherwise be primed for healthy activity.”Article content Still, don’t expect a lack of listings amid a cohort of motivated buyers to translate into big price gains this spring.

 

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