It’s Wednesday, Sept 20th and here is your Mid-month mini REAL estate market update
Here is 3 things that’s happened in the last 2.5 weeks.
- Inventory is up… alot.
- Active inventory has risen by 16% in Newmarket since the end of August!
- This matters for 2 reasons:
- First: Buyers have more options to choose from, and will demand terms that work for them… not so much the Seller
- Second: New inventory is likely to undercut the higher priced homes currently on the market, especially if the owners are motivated
- The average sale price is down by approximately $120,000 from the end of August
- This is not a stat I put a lot of weight in though especially with only 35 sales so far reported for the month, but it’s an indicator nonetheless that things are changing.
- If the average sales price remains around this level, it will be the lowest monthly average since December 2022.
- Which is a stark contrast to the End of August, which was the highest Avg Price in 16 months!
- We are starting to see properties come back on the market which had sold, but appear to have not closed, or will not close.
- This is a sign of some troubles,
- There are a few reason why this can happen, but it is usually because the Buyer was not able to secure financing on a home, after the bought it firm,
- Or, perhaps they were unable to sell their existing home and need to get out of the deal
3 Things I am watching right now:
- Inventory. 217 active listings it’s still relatively low on a historical perspective, but when coupled with extremely low number of sales, it’s concerning. If inventory gets above 250 by the end of the month, we will likely see continued downward pressure on prices.
- Number of homes that are NEW to the market (not a relisted home) that are coming out with an “offer date”...
- There are still some agents listing extremely low to get multiple offers, but with mixed results.
- We are seeing more and more listings come out with no offer date to try to entice Buyers to act quickly and buy before the next new listing comes out, which may undercut the price
- Interest Retes of course.
- Inflation date came out this week that canada had 4% inflation last month, which is still well above their 2% target.
- There is 2 more interest rate policy announcements in 2023, and while many expect rates to hold for a few months, if inflation data remains high, we could see more hikes… which will not be kind to the real estate market.
Let me know in the comments what your thoughts are
Are prices going to bounce back, or could we see a further slide?
or if you have any questions, do not hesitate to DM us. We are here to serve!
Until next time!