The Ebb and Flow of Real Estate

Like any market in the world, the real estate market fluctuates. We realtors call this the ebb and flow of real estate. Its primary driving factor is supply and demand. Simply stated when supply is low, meaning the market has a limited amount of houses available for sale, demand is high, meaning there is an overflow of buyers than there are homes available.

This creates what is called a Seller's Market.

You probably keep hearing the term Seller's Market as this is the current market we are in. This too will change, however. It is the ebb and flow of real estate and that is a historical fact.

Bank of Canada Interest Rate

Another factor that greatly affects the real estate market is the interest rate that the Bank of Canada sets. They do this to try to control the market either by heating it up or cooling it down so prices don't fluctuate too quickly or too slowly. While this method provides some control, it doesn't always work according to plan.

Other Factors

There are a variety of other factors that can affect the real estate market. As we have recently all experienced world issues such as a pandemic can drastically affect the real estate market. In our case, it drove the supply right down which in turn drove the demand for property way up.