Sales on record pace
Low supply of homes continues to be a concern
Local home sales continued to set records for the first eight months of the year, hitting 1,820 units sold by the end of August.
That was up 4.4 per cent from 2016 and a record for that time period.
But race to snap up local homes has settled a bit, says Mike Carson, CEO of the Brantford Regional Real Estate Association.
“Buyers have more time to look around and not feel rushed because there are six other people on their backs waiting to buy,” Carson said in an interview Wednesday.
“We’re seeing good prices and significant interest in homes but not as many multiple offers and way-over-asking prices that we were seeing a few months ago.”
The average price of all homes in August was $388,757 – up 8% over last August’s prices – and the average price of a detached house $422,392.
So far in 2017, the average price of homes has been $406,453, up 22% from prices at the same time in 2016.
Carson said the market tends to be quieter over summer and pick up again in September.
Association president Shelly Gracey said in a news release that number of houses sold almost hit a record for in August, even though the peaks of the last quarter have diminished.
“Meanwhile, after an initial jump back in May and June, new supply has pulled back noticeably over the last two months,” she said. “That has caused market conditions to start to tighten up again.”
Realtors continue to be concerned about the low inventory of houses for sale.
Lastmonththerewere254newresidential listings, up just a bit from the previous August but nothing like the year-over-year gains that were hitting between 30 per cent and 50 per cent in the previous three months.
The overall supply of homes is still one of the lowest levels every recorded.
There were 351 active listings on the association’s MLS system at the end of August, the second lowest August level recorded.
The total dollar value of homes sold in August was $85.1 million – the highest August on record. The total value of all properties sold was $100.5 million, an 8.8 per cent increase from the same month last year.
In July, those values were $83.4 million for all home sales and $93.2 million for all property sales.
Carson said there’s been some concerns raised about a proposed new mortgage regulation that would affect people getting uninsured mortgages.
Those with more than a 20 per cent down payment would have to qualify at two per cent above the bank rate in order to ensure they can truly afford the home.
“It will affect what people can borrow in terms of a maximum mortgage and that will put pressure on them,” said Carson.
He said the concern is the proposal could shut some consumers out of the market or drive them to either less suitable housing or to lenders who aren’t federally regulated.
“The reality is that home ownership is slipping out of reach for many first-time homebuyers in housing markets with a shortage of affordably priced homes.”
The month of August continued to be strong for property sales with 221 residential sales, at an average price of $388,757.