This July, even the market relaxed: July 2022 Market Update
It seems our real estate market did what most of us did in July…relax! 🧘
While it’s seasonally on trend for a slowdown in July (👋 cottage season!), we all know that the changing economy, fueled by the COVID aftermath & interest rate changes are truly what is making a difference here.
Most notably, sales in July were ⬇️ by 47% since last year. Which, in and of itself, is somewhat expected as last year's craze calms. What is more interesting is that the # of new listings hitting the market is relatively the same as last year, only down 4%. This means - same inventory, less buyers = more options!🙌
With these options, listings are now spending about 29 days on the market (including any re-lists), which is 45% longer than last year.
This also means the trends we saw at the beginning of June have continued. Price growth has moderated, with the avg. price now at $1,074,754. This is ⬆️ 1.2% from 2021. We are seeing a recovery in the smaller (less expensive) home segments - with price growth for condos (7%), semi’s (5%) and townhouses (6%). And on the flip side, detached home prices are down 3% year over year.
Now the graphic above shows that since June, the prices on all home types are dropping. And they have - very slightly. It’s important to see our point above, looking at the entire year, most home segments are up. Interest rates had a direct correlation to July’s slight dip (and a lot of it is the psychological effect).
As a seller, reading this - it can be easy to panic. But please don’t.🛑
People still need to buy and sell homes. And in most cases - the investment is fairly long-term. What you are selling will be relative to what you are buying - you are operating in the same market. Strategy, marketing + agent who can give you clear expectations is the best way to ensure you have a successful sale - because it's very possible right now (just ask us for proof!)🤩
👀For those semi, townhouse or condo owners - pay attention. This area did not reap the same benefits as the detached markets in 2020/2021 but is coming back strong.
And the reality is, it’s a great time to buy! Let’s hop on a call 📲