Last month, 73% more houses hit the market than in January. Sales increased by 94%, due to pent-up demand. The market remained very tight throughout, with only half a month’s inventory available.
February marked the second month in a row where the average price of a detached home in Cambridge surpassed the million-dollar-mark. It was the first time ever that that figure has been over 1.1 million.
The average sale price amongst all homes in Cambridge is now over a million dollars. That’s an increase of 12% from last month and 40% from this same time last year. For detached homes, the average sale price was up 14% to $1,142,206. The average sale price for attached homes was $869,156 and for condos and apartments, $552,250.
Multiple offers are still very much the norm, with 98% of homes in that scenario and selling for, on average, 31% above list price.
GTA buyers continue to make the move to Cambridge, driven by work-from-home flexibility. It is less expensive than where they currently live.
“Demand is too high and inventory too low for the market to cool off any time soon, even with the recent interest rate increase of 0.25%,” says Trish Lewis, Sales Representative, GoWylde Team/ReMax.
According to deputy chief economist at CIBC World Markets Benjamin Tal, the Russia/Ukraine conflict will fuel more inflation, unless something like a cyber-attack happens. Even though there will be added instability, he believes the Bank of Canada will continue to hike interest rates this year.
Many younger buyers are turning to their parents for help getting into the market. “Unfortunately, millennials are unlikely to see any price relief in 2022,” says Lewis. “The market should cool to regular increases by later this year, but we are unlikely to see a price correction.”
Many sellers have continued to cash out in this hot market, moving into their second homes or to homes in more affordable cities in northern or western Ontario. “We also see people moving to eastern Canada; even though prices are skyrocketing there, they are still way more affordable than Cambridge,” says the REALTOR®.
It will be interesting to see what other trends continue and which new changes lie ahead as we leave the last of winter behind and finally enter the spring market.
For more information, or to contact real estate agents Mary Wylde and Trish Lewis, visit the GoWylde Team or call 519-826-7109.