Is the Housing Dip a Buying Opportunity? Or, is Canadian real estate headed for disaster?
That’s the big question on everyone’s mind right now. Right? If you are to only look in small time increments, it will seem like everything is coming crashing down. If you take the time to look at the larger picture in a lot of the areas that have seen these massive drops, you may have a different outlook. We as a market still haven’t been able to fully take in what happens with the higher interest rates because a lot of the people buying right now are buying with rates they were given 30-90 days ago. We saw a massive input of supply hit the market over the last couple of months in the typical spring market, but with the increasing interest rates, we didn’t see the same amount of demand we normally do.
Real estate is all patterns, and once you start looking at the patterns to navigate what may happen, things aren’t as scary.
(Pulled from TRREB Market Stats Freehold & Condo Listings Only over the last 5 years)
Using Sports To Explain The Emotions of Buying and Selling
I heard a great analogy of what’s happening in the market right now. Do you remember playing or watching Timbits soccer? The ball goes into play, and everyone just goes after the ball. There’s no strategy, it’s just a free for all of everyone following the ball. That’s what most people are doing right now. They are forgetting to look at the big picture. There is a strategy to find good deals in this market as a buyer or to get the absolute top dollar for your home as a seller.
No, you’re not going to be able to get a property for 50%+ off what the market value is, but now is the time as a buyer to put in an offer that’s slightly lower than what you think they may accept. You never know! This isn’t going to last for long though. More people are selling their homes first before buying. So, we’re going to see a lot less pressure on the sellers. So, even if we do see a decline in prices over the remainder of the year due to interest rates. it’s probably not going to be nearly as rapid as what we saw over the second quarter of this year.
It’s too early to tell what’s going to happen for the remainder of this year and into 2023 but the main factors are going to be interest rates and inflation.
To answer the question is it a good time to buy right now – ask yourself, why are you buying? Do you NEED a bigger house? A smaller house? More space, different location? Plan your next 3-10 years and make sure it makes sense for you and your family/situation.
Don’t forget The Bank of Canada has a big announcement next Wednesday!
If you want to get started with putting that plan in place, you know who to call/text/email!
613-503-0213 – [email protected]
Weekly Market Stats
Commentary: We saw a typical decrease in activity across the board with it being a holiday long weekend. Most areas saw a 25-50% decrease in new listings week over week. This helped in most cases lower the number of active listings on the market for the first time in a while. Typically in the summer months, we will see the active listings dwindle until after the Labour day long weekend when things get fired back up again. Let’s see if that happens again this year even with another potential rate increase next week.
Condos
Active 2166 from 2277
New 297 from 508
Sold Conditionally 52 from 56
Expired 72 from 14
Terminated 205 from 223
Sold 104 from 116
Average Price $863,129 from $838,491
Median Price $757,500from$691,000
List Price to Sale Price 100.83% from 100.16%
Average Days on Market 21 from 22
Freehold
Active 939 from 1006
New 153 from 284
Sold Conditionally 11 from 11
Expired 28 from 5
Terminated 89 from 120
Sold 75 from 92
Average Price $1,748,941 from $1,912,150
Median Price $1,500,000 from $1,564,000
List Price to Sale Price 104.25% from 102.21%
Average Days on Market 13 from 13
Condos
Active 46 from 507
New 61 from 98
Sold Conditionally 9 from 7
Expired 21 from 4
Terminated 48 from 39
Sold 20 from 23
Average Price $1,121,945 from $956,652
Median Price $810,000 from $628,000
List Price to Sale Price 97.60% from 98.57%
Average Days on Market 22 from 21
Freehold
Active 443 from 472
New 58 from 99
Sold Conditionally 3 from 2
Expired 17 from 1
Terminated 35 from 41
Sold 25 from 32
Average Price $2,129,800 from $2,906,674
Median Price $1,625,000 from $2,599,000
List Price to Sale Price 100.60% from 99.88%
Average Days on Market 13 from 10
Condos
Active 432 from 451
New 72 from 100
Sold Conditionally 15 from 16
Expired 11 from 1
Terminated 46 from 42
Sold 17 from 30
Average Price $731,053 from $735,629
Median Price $665,000 from $706,500
List Price to Sale Price 100.18% from 99.07%
Average Days on Market 20 from 23
Freehold
Active 256 from 277
New 33 from 31
Sold Conditionally 4 from 3
Expired 15 from 0
Terminated 16 from 14
Sold 15 from 16
Average Price $1,969,200 from $1,475,313
Median Price $1,850,000 from $1,432,500
List Price to Sale Price 101.20% from 99.19%
Average Days on Market 21 from 17
Condos
Active 293 from 302
New 45 from 77
Sold Conditionally 7 from 7
Expired 11 from 2
Terminated 25 from 38
Sold 15 from 14
Average Price $956,100 from $847,907
Median Price $810,000 from $718,100
List Price to Sale Price 103.80% from 99.07%
Average Days on Market 18 from 18
Freehold
Active 254 from 274
New 43 from 81
Sold Conditionally 4 from 4
Expired 4 from 2
Terminated 24 from 28
Sold 20 from 27
Average Price $1,645,333 from $1,771,841
Median Price $1,445,000 from $1,470,000
List Price to Sale Price 99% from 97.70%
Average Days on Market 20 from 14
Condos
Active 67 from 65
New 9 from 25
Sold Conditionally 2 from 1
Expired 0 from 0
Terminated 7 from 11
Sold 5 from 6
Average Price $967,200 from $668,000
Median Price $1,125,000 from $622,500
List Price to Sale Price 107.6% from 100.5%
Average Days on Market 17 from 15
Freehold
Active 217 from 231
New 47 from 99
Sold Conditionally 6 from 5
Expired 1 from 0
Terminated 28 from 41
Sold 28 from 31
Average Price $1,504,111 from $1,462,391
Median Price $1,413,000 from $1,290,000
List Price to Sale Price 110.93% from 107.97%
Average Days on Market 9 from 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.
