July Monthly Market Update

The number of homes on the market is lower than in previous years, indicating reduced inventory. However, the average sale price has seen a notable increase of 5.9% compared to last year, suggesting that despite limited options, demand for housing remains strong.

Sales have increased by 28.6% compared to the previous year, indicating a robust market. However, the market experienced a shift when the Bank of Canada raised the interest rate by a quarter percent. This increase had an immediate softening effect on prices, as is common when interest rates rise. Consequently, properties listed and sold in June had a 4-month absorption rate, meaning homes took four months on average to sell.

Considering the recent interest rate increase, it is reasonable to anticipate that the absorption rate for homes sold in July will be longer. While homes can still sell during this time, it may take longer than expected. To ensure successful transactions, homeowners should prioritize pricing and presentation, which are crucial in attracting potential buyers.

The Consumer Price Index for May revealed a slowdown in the annualized inflation rate, which decreased by a full percentage point from April to 3.4%. A drop primarily influenced the decline in fuel prices. The Bank of Canada's measures of Core inflation, excluding volatile items like fuel and food, also showed a decrease but remained above the Bank's 2.0% target.

 

International migration to Canada also surged in 2022, leading to a population growth rate of 2.7%, the highest among developed nations since 1957. With the housing shortage intensifying and housing starts decreasing, the demand for rental and purchase properties has reached unprecedented levels.

Given the current real estate market dynamics, homeowners planning to sell should seek guidance and expertise to navigate the complexities effectively.

I can provide comprehensive plans and strategies tailored to your circumstances. By you staying informed, continuously updated about market trends, and relying on expert advice, I can help you maximize your chance of success in this dynamic real estate landscape.

Call me!