Real estate prices have been climbing for some time now and there’s no sign of slowing just yet.
The average sale price amongst all homes in Cambridge continued to increase in the month of October, actually surpassing $800,000—a jump of 8%.
“An 8% increase in just one month is enormous considering Cambridge used to see the average sale price increase between 3 and 5% per year,” says Trish Lewis, Sales Representative, GoWylde Team/ReMax.
“This is great news if you are someone who is looking to downsize in this market to a condo or a secondary home, or if you’re an investor wanting to sell some of your portfolio. It is awful news, however, if you are a first-time buyer and you are wanting to break into the real estate market.
Heading into the holiday season, there has been an 8% decrease of new listings hitting the market. Buyers are still buying up homes very quickly and as a result 85% of homes sold in multiple offers. The low interest rates and low supply continue to keep this a very strong sellers’ market.
When you look at this October’s performance over October 2020, the number of listings on the market was down 44%.
Of course interest rates are on everyone’s minds these days and the central bank has an enormous amount of pressure on it to keep the rates as low as possible right now. The Bank of Canada did announce in October that planned rate hikes will be coming sooner than expected.
“Interest rates will start to go up faster than previously anticipated,” says Lewis. “We could see them increase by a ¼ basis point by the end of this year and continue to increase throughout 2022.”
It is still a good idea for buyers to purchase—which they should do right now, if possible. Because even though we will see interest rates increase, it should be just enough to slow the market, but not enough to have prices come down.
Lewis recommends that sellers list their homes this winter instead of waiting until the spring, since there is such low inventory on the market.
For more information, or to contact real estate agents Mary Wylde and Trish Lewis, visit the GoWylde Team or call 519-826-7109.