In spite of summer seasonalitity and a tightening market due to increasing rates, August sales numbers showed some unexpected resiliency!
Unit sales increased 15% over July, in what is typically a sleepy time of year. This may be attributed to buyers wanting to beat rumours of another rate hike in September which did, in fact, materialize. Compared to August 2021 (year over year) sales dipped 23% however the Region fared better than the GTA’s dip of 34.2%. This is testament to the Region’s continued popularity as a destination for home buyers.
The Average Sale Price across the Region was $920,269, up 2% from July’s average of $901,412 and fairly even with the Average Price of $918,133 recorded in August of 2021. The market corrected dramatically from the spike in February but year over year is pretty steady in spite of the rising cost of money, at least at this point in time.
The Sale Price to List Price Ratio (how much Seller’s are getting, on average, based on their asking price) came in at 100%. That’s down from the hey-days but still extremely respectable. Months of Inventory is running between 4 - 6 weeks, depending on who you ask and the Average Days On Market was 17 days. This statistic reflects the fact that Buyers are utilizing conditions once again and this tends to extend the marketing time as reflected above.
What has changed dramatically is how homes are marketed as clearly the old ways of doing things have morphed to accommodate market conditions. We see many more homes terminate and relist, suspend their listings or completely terminate their sale. That said, the vast majority of people I speak to have a pretty good understanding of the new reality and while they may receive less from their sale, they’re also paying less on the buy side.
The QUESTION I most receive is “are homes selling?” Well, yes they are as evidenced in paragraph 2 with sales up over 15% and prices up 2% from the previous month. There’s always an ebb and flow to the market and it’s not all dependent on the cost of money. Seasonality still plays a roll and we’ve just entered the 2nd busiest season of the year, the fall market. It will be interesting to see how it plays out through the end of November. If you’re a buyer, it is an excellent market for you and will remain so for the foreseeable future.
If you’d like information about your own situation, please reach out for a free consultation. Call us at 905-442-5847
