The biggest news in local real estate here in Cambridge is in the inventory.
There has been a significant increase in the number of new listings that have recently come onto the market—41%—compared to the previous month.
“This surge in new listings is a positive development, as it addresses the need for more properties available for buyers,” says Trish Lewis, Sales Representative, GoWylde Team/ReMax.
It’s typical this time of year to see increased activity. The arrival of the spring market likely contributed to the higher number of listings.
How has all of this affected home prices? The average sale price has increased slightly, up 3% compared to the previous month.
The average sale price across all housing types in May was $795,168. For detached houses, it was $857,703, for attached homes it was $716,051, and for condos and apartments, the average sale price was $577,896. This last category saw the biggest month-over-month increase by far at 16%; this was due to more higher-end condos selling in May, which brought up the average.
“A noteworthy trend in the current market is the prevalence of homes being listed at lower prices while sellers hold off on accepting offers. This strategy has resulted in 74% of homes selling above their initial asking price,” explains Lewis.
Recently, on June 7th, the Bank of Canada increased interest rates once again, raising them by 25 basis points, with the key interest rate now sitting at 4.75%. “It will be interesting to observe how potential homebuyers react to this news,” says the REALTOR®. “This is the first increase we have seen since January 25th.”
These higher interest rates will impact affordability and they could potentially influence buyer behaviour. Says Lewis, “It remains to be seen how this decision will impact the real estate market in the coming months.”
For more information, or to contact real estate agents Mary Wylde and Trish Lewis, visit the GoWylde Team or call 519-826-7109.