Market Update June 2021
The Canadian real estate market is starved for new listings supply. Over the last 14 months, demand for housing has skyrocketed, from major urban centers to rural communities alike. Everybody wants to take advantage of historically low interest rates and dive into the housing market. The problem? Insufficient housing stocks, leading to a challenging environment of bidding wars and blind bidding, which has triggered a tremendous spike in valuations.
Are first-time homebuyers and young families being priced out of the real estate market nationwide? The affordability crisis, according to industry experts, is intensifying. It is becoming a challenge to save up enough for a down payment or find a home with a conservative budget.
In recent months, there have been recommendations that the government should intervene, and the Bank of Canada (BoC) should begin to normalize monetary policy by raising rates. But while stress tests and rate hikes might offer short-term ways to cooling down a red-hot real estate market, the long-term solution is additional inventory coming to market. Click the link for more!
Closer to home there were 1304 sales in The Quad Cities (KW, Cambridge & Guelph) for May, down just slightly from April. The average time on market was 12 days which remained unchanged from the previous month. The average sale price for May was $746,000 or about $490 per square foot. Happy sellers received on average 112% of their asking price which means that many homes attracted multiple offers. Going forward into June, there are 735 active listings which represents about 2 weeks worth of housing inventory. The market slowed down slightly in May for the second straight month and I’ve started to see some conditional offers appear on the daily hot sheet. This is good news because it means that some buyers were able to make conditional offers and get them accepted. However, even though the market is gradually slowing down, this is still an extreme seller’s market with very low inventory so homes should continue to sell quickly and in many cases, over asking price.
Are you thinking of making a move in 2021? Put RE/MAX, real estate’s premier brand and my 20+ years of experience to work for you! Call/text/email/DM me and let’s get started with a free home evaluation and custom marketing plan!
