2022-06-28 – The Weather Is Getting Hot, The Market On The Other Hand…
It’s been nice to feel like things are opening up, and the weather is getting nicer but the only thing talked about more than the weather these days is real estate. Every single day, it seems like there’s a new article being posted by any of the major media sites (or smaller ones) talking about real estate. Don’t get me wrong, I think it’s a good idea to stay up to date with what’s happening in the economy, but make sure you’re using credible sources and reading the whole story NOT just the headlines.
Most of what’s happening right now in the market is emotionally driven. Everyone’s mindset has shifted, and quickly.
Which makes sense, we just went through two years of expedited price growth, there was no way that it would be sustainable. In March 2020, we saw the fastest Bank of Canada overnight rate changes in a long time. We went from 1.75% all the way to .25% in the span of 30 days. Of course, that lead to increased affordability or essentially ‘free money’ for almost the last two years.
Now we have to go the other way, at extreme rates to not only cool the housing market but also to combat inflation which has gone through the roof.
All of the glass half empty people are abandoning ship, expecting everything to go to 0. When that’s just not possible unless our entire economy fails. It’s a sad, but funny, not funny kind of truth.
My outlook this week is that there are opportunities out there on both sides of the sale but more opportunities on the buying side. The thought process behind that is homeowners have gotten used to homes selling in 7 days or less, typically with 5+ offers at once. Now, with rising interest rates, lessened demand, and increased supply, prices are seemingly dropping weekly, if not, daily in some areas.
There are a lot of properties out there, that unfortunately for the homeowner have been sitting on the market for 30, 60, or 90+ days on market. This typically happens because the price and quality don’t line up. In a normal market, if you have 10 showings, and no offers, you’re usually off in price by about 5% but now, if you wait that long, the market has already probably dropped a little bit and you have to play catch up.
If you’re a buyer make sure to keep an eye on properties that have high days on market or have had multiple price reductions. This is the market where you never know what price the owners will really accept.
If you’re thinking of selling, your presentation and pricing are more important than ever to stand out and get that top price you want. No, you’re not going to get peak Feb 2022 prices, but as long as you’re not exiting real estate forever, you’re still going to be doing well. Remember, Real Estate is and always has been a long game. If you try to day trade real estate you’re going to get burned once and a while.
We have another Bank of Canada announcement on July 13th that will also release the economic forecast. Reach out if you have any questions before, during, or after that announcement.
613-503-0213
Market Stats
Condos
Active 2277
New 508
Sold Conditionally 56
Expired 14
Terminated 223
Sold 116
Average Price $838,491
Median Price $691,000
List Price to Sale Price 100.16%
Average Days on Market 22
Freehold
Active 1006
New 284
Sold Conditionally 11
Expired 5
Terminated 120
Sold 92
Average Price $1,912,150
Median Price $1,564,000
List Price to Sale Price 102.21%
Average Days on Market 13
Condos
Active 507
New 98
Sold Conditionally 7
Expired 4
Terminated 39
Sold 23
Average Price $956,652
Median Price $628,000
List Price to Sale Price 98.57%
Average Days on Market 21
Freehold
Active 472
New 99
Sold Conditionally 2
Expired 1
Terminated 41
Sold 32
Average Price $2,906,674
Median Price $2,599,000
List Price to Sale Price 99.88%
Average Days on Market 10
Condos
Active 451
New 100
Sold Conditionally 16
Expired 1
Terminated 42
Sold 30
Average Price $735,629
Median Price $706,500
List Price to Sale Price 99.07%
Average Days on Market 23
Freehold
Active 277
New 31
Sold Conditionally 3
Expired 0
Terminated 14
Sold 16
Average Price $1,475,313
Median Price $1,432,500
List Price to Sale Price 99.19%
Average Days on Market 17
Condos
Active 302
New 77
Sold Conditionally 7
Expired 2
Terminated 38
Sold 14
Average Price $847,907
Median Price $718,100
List Price to Sale Price 99.07%
Average Days on Market 18
Freehold
Active 274
New 81
Sold Conditionally 4
Expired 2
Terminated 28
Sold 27
Average Price $1,771,841
Median Price $1,470,000
List Price to Sale Price 97.70%
Average Days on Market 14
Condos
Active 65
New 25
Sold Conditionally 1
Expired 0
Terminated 11
Sold 6
Average Price $668,000
Median Price $622,500
List Price to Sale Price 100.5%
Average Days on Market 15
Freehold
Active 231
New 99
Sold Conditionally 5
Expired 0
Terminated 41
Sold 31
Average Price $1,462,391
Median Price $1,290,000
List Price to Sale Price 107.97%
Average Days on Market 10
Legend
C = Condos
F = Freehold
Sellers Market = 0-4 Months of Inventory
Balanced Market = 4-6 Months of Inventory
Buyers Market = 6+ Months of Inventory
What is Months of Inventory?
Months of Inventory (MOI) is the relationship of sales pace to the number of properties currently on the market if no additional homes were added to the supply. It is calculated by determining the number of homes sold per month and dividing by the total number of properties for sale on the last day of the month. It is susceptible to changes in supply and/or sales pace.
