What kinds of trends have we been seeing in real estate so far this summer?
The month of July saw home prices continue to drop, and Cambridge was no exception.
“We usually see a slowdown in sales during the summer months, but this year it has been more severe,” says Trish Lewis, Sales Representative, GoWylde Team/ReMax.
Just how much of a drop was seen? The average sale price decreased by 9% last month. That figure—$703,291—is a number that is down considerably from February’s high of $1,043,000.
The average sale price of a detached home in Cambridge was $748,771. For attached houses it was $633,567 and for condos and apartments $513,714.
Sales have decreased too, down 32% in July compared to this time last year.
There is good news for buyers at least.
They have more inventory to choose from as the number of listings on the market increased by 14% since June. This is definitely a welcome change from conditions many experienced earlier; for example, there has been a 70% increase in new listings from July 2022 to July 2021 alone.
The primary factors behind this significant change include the Bank of Canada’s unprecedented 100 basis point increase and a softening of consumer confidence. The interest rate hikes aren’t over yet either, as we will likely see the BOC raise the rate another 50 to 100 basis points in September, with the aim of controlling inflation.
“Contrary to what you may believe, this is the best market for upsizers. You can purchase your dream home with much less of a gap. For first-time buyers, prices are reasonable, inventory is high, and it is an excellent opportunity to get in the market,” says Lewis.
If you are downsizing or getting out of the market, it may not be the ideal time. Of course, it all comes down to lifestyle or the amount of equity you have in your home; these factors are important too.
For more information, or to contact real estate agents Mary Wylde and Trish Lewis, visit the GoWylde Team or call 519-826-7109.