Just as the rest of the country is experiencing, the Cambridge real estate market has seen another slow month.
The number of home sales has dropped 18 percent from May 2022 and this slowdown has caused the average sale price to drop as well: it’s down 7 percent from the previous month. Year-over-year, the average home price in Cambridge has increased 4 percent from last year, which is a typical increase you’d expect to see in any given year.
In June, the average sale price of a detached home in Cambridge was $846,612. For attached houses that figure was $675,544 and for condos and apartments it was $521,000.
At the same time, inventory is up 7 percent. It has been a long time since there has been 1.65 months of inventory available, which is good news for buyers.
The Bank of Canada just increased the interest rate by 1%, the largest jump seen since 1998. It is, of course, the third increase we have already seen this year. And by year’s end, many agree, we’re likely to see an additional 75-100 basis point increase.
“An increase will impact people with variable mortgage rates,” says Trish Lewis, Sales Representative, GoWylde Team/ReMax. “Right now there is a 2-point spread between fixed and variable rates; I’m still leaning towards variable as the way to go. If the economy slows too much, the Bank of Canada will bring the rates down, but not as low as they were.”
What does all of this mean, then, for buyers? In a declining price market, it’s the best time for anyone who was hoping to upsize and move into a bigger place to make the move. That’s because the gap between what they are selling and what they are buying will be the smallest.
Says Lewis, “It is a much nicer market for all people buying and selling; you can sell first and know what money you have available before purchasing. With all investments taking a hit, real estate has fared very well. There is still a housing shortage, so when you come out of the other side of this mess, we can see prices rise rapidly again.”
For more information, or to contact real estate agents Mary Wylde and Trish Lewis, visit the GoWylde Team or call 519-826-7109.