- We have had three consecutive months with an increase in contract activity when compared to the same month of the previous year.
- The overall supply of homes—the number of available homes divided by the number of homes going under contract is just 4.3 months, down from the 5.2 months one year ago.
- The supply of homes in each price category under $1,000,000 is five months or less.
- While average sales prices have fallen in every property type—condos, attached and detached homes—prices remain well above levels seen in 2004. Only those who purchased at or near the peak of the market and have to sell now are struggling.
- Mortgage interest rates remain at very attractive levels and that fact seems to be keeping some buyers “in the game”. Where prices have come down the most, buyers are lured by affordability.
There are areas of concern—higher priced properties are more likely to be taking it on the chin with much slower activity than lower price ranges. Condos are still having a tough time of it. In general, homes are taking longer to sell than last year and are selling at a deeper discount to original list price. However, I see this as the market getting back to the more normal cycles we saw in the earlier part of the decade.
I think this is a great time to by buying if it is your first time and a fabulous time for collecting some investment property. Who wants to put your money in the stock market when you can have a renter paying the mortgage on your investment? The rental market is really hot!
As always, please let us know if we can help you with any of your real estate needs.
Best,
Sue
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