End of summer market update
Summer is coming to a close once again! That means it’s time for an end of summer market update here in Barrie. Whether you’re a buyer or a seller, staying informed about changes in the market is essential for making the best decisions for your future. Here’s what you should know about the latest from the Bank of Canada, supply and demand trends, and some tips for both buyers and sellers.
Bank of Canada updates
The Bank of Canada has continued its efforts to stabilize the economy. Interest rates are starting to cool, which comes as a response to inflation being brought under control. For those with variable-rate mortgages, this has been a welcome change. Your mortgage payments have likely decreased, offering some financial relief. On the other hand, if you have a fixed-rate mortgage, your payments remain consistent, providing predictability and stability. However, given the evolving market conditions, it’s never a bad idea to assess whether your current mortgage still meets your goals. If you’re unsure, now might be the right time to speak with your mortgage broker to discuss your options.
Supply and demand
The current market in Barrie is giving buyers a bit of an edge. The average sold price of a home is now $763,000, marking a decrease on a monthly, quarterly, and yearly basis. This downward trend in prices is a clear indicator that the market is cooling off. Homes are also spending more time on the market, with the average property taking about 29 days to sell. Additionally, the selling price to listing price ratio is sitting at 97 per cent, meaning many homes are being sold for slightly under their asking price. In the last 28 days, 159 homes were sold, while 476 new listings came onto the market. For those looking to buy, these are encouraging facts. With more options available and less demand compared to the past, you may have a better chance of securing a home at a price that fits your budget.
*All data from Zolo.
Tips for buyers
If you’re in the market to buy a home, the current conditions are more favourable than they have been in recent years. However, even with the market tilting in your favour, it’s essential to approach the process with preparation! Before you start house hunting, make sure you’re pre-qualified for a mortgage. This will give you a clear understanding of how much you can afford and strengthen your position when making an offer. Sellers are more likely to take your offer seriously if they know you have taken this step. While the market may be shifting, having a solid down payment also remains crucial. The larger your down payment, the less you’ll need to borrow, which can save you thousands in interest over the life of your mortgage. Finally, beyond just the purchase price, consider all the costs associated with buying a home. This includes closing costs, moving expenses, and any immediate renovations or repairs. Create a detailed budget to ensure you’re financially prepared for all aspects of homeownership!
Tips for sellers
Selling your home in a cooler market can be challenging, but it’s not impossible. With the right strategy and preparation, you can still achieve a successful sale. In a market with more listings, it’s important to make your home as appealing as possible. This could mean investing in minor upgrades, staging your home professionally, or simply ensuring it’s clean and well-maintained. First impressions matter, so take the time to make sure your home looks its best. Pricing your home correctly is also key to attracting buyers. If your home is priced too high, it may sit on the market longer than you’d like. On the other hand, pricing it too low could leave money on the table. An experienced real estate agent can help you determine the right price based on current market conditions and comparable homes in your area. With homes taking longer to sell, patience is essential! It may take a bit more time to find the right buyer, but rushing the process could lead to unnecessary stress. Trust the process and remain flexible to accommodate serious buyers.
As the summer comes to a close, the real estate market continues to evolve. Whether you’re looking to buy or sell, staying informed and prepared is the best way to navigate these changes. If you have any questions or need personalized advice, don’t hesitate to reach out to your mortgage broker or real estate agent. With the right guidance, you can make the most of the current market conditions and achieve your homeownership goals.
If you have any questions about your mortgage, get in touch with me!