Hey everyone, and welcome back! Let's dive into what's been happening in the real estate market.
Overall, we're seeing a slight slowdown, which isn't too surprising for mid-summer. Activity is just a bit below what we saw last July, as many folks are out enjoying their holidays. New listings are still coming on, just at a slightly slower pace.
What's Moving?
Interestingly, lower-priced homes and condos are still quite active. We've even seen some unexpected sales, including student units, continuing the strong pace they've had. Buyers seem to be driven by their own housing needs rather than investing, and they're finding the new lower prices in the condo market make those condo fees much easier to swallow. While we've seen some units sell for "ridiculously low prices," overall prices remain relatively stable, down about 2% from last month and 1% year-over-year.
We're noticing a lot of people looking to move up in the market. It might be the season where buyers can truly appreciate homes with pools and other amenities! On the flip side, some lower-priced homes are sitting on the market a bit longer, likely due to that summer vacation lull and reduced urgency from buyers.
Interest Rates & Investor Activity
Good news on the interest rate front! The general consensus is that the Bank of Canada will hold rates steady next week. Mortgage rates for qualified buyers are holding firm around 4.25%.
Investor activity remains low. We're seeing the occasional duplex sale, but multi-family properties are mainly moving if they're under $750,000. It's clear that the current market is all about deliberate, planned purchases rather than speculative buys.
The Rental Market Push
Now, let's talk rentals! Locally, we've seen a big push, partly because Universities have accepted more students than usual. Management companies are reporting a significant increase in activity, though this isn't necessarily driving up prices. It's typical to see a rental surge this time of year, but the need seems to be even greater this year.
Listing Strategy Shift
A critical point for sellers: the "listing low" strategy is becoming less effective across most price points. While you might still get offers, many properties are selling under market value. This strategy really only works if you have a seller who absolutely needs to sell, and it's highly dependent on the market segment. It's especially ineffective for "mediocre properties." Pricing low and expecting 30 groups through the door simply isn't realistic right now. If you're considering this approach, it's crucial to understand all possible outcomes.
We're also seeing fewer online inquiries and showing requests, indicating an overall drop in activity levels. Despite this slowdown, we still had a surprising number of sales last week! And after chatting with other agents in the office, it looks like a lot of new listings are coming up soon, so stay tuned for that!
That's your market update for this week! If you have any questions about your specific situation or the market, don't hesitate to reach out. What are your thoughts on this mid-summer market? Let me know in the comments below