At this point in the game, things are starting to get a little strange with Owen Sound’s housing market.
We’re sliding into July with a bit of an ominous omen hanging over us: another interest rate hike is expected this month.
While I was supportive of the initial hikes – the market was just getting too crazy – additional hikes at this point serve more as a punishment than a solution.
The interest rate hike on June 7th resulted in little more than a hiccup in the housing market – buyers are adapting to the new reality and pushing forward.
Food, gas and other essentials continue to be more expensive than usual, and the interest rate hikes are only pricing more people out of the market.
Needless to say, the Bank of Canada’s inflation plan is in serious need of revision.
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Before seeing how Owen Sound’s real estate market fared over the past month, let’s take a quick look at the year-over-year performance.
A couple of the numbers you’re going to see here will surprise you.
June 2022:
- Avg sales price: $568,232
- Inventory: 81 homes
- Days On Market: 12
- Total sales: 27
June 2023:
- Avg sales price: 14% lower
- Inventory: Unbelievable – the exact same amount as in 2022 – 81 homes for sale.
- Days On Market: Almost doubled at 22 days.
- Total sales: Again, freaky, but 27 sales is what we got, same as last year.
As you can see, there is some cause for optimism.
We had the exact same amount of homes on the market as we did this time last year, as well as the exact same number of sales – so we’ve established some balance.
The good news is that the average home sale price went down while the amount of days on the market went up – both of those factors work in the buyer’s favour.
Let’s see how June fared against May:
- The average cost of a home rose from $475,000 in May to $490,000 in June.
- We also got a much-needed boost of inventory (the good news) going from 55 listings in May to 81 in June.
- June also saw four more homes changing hands than in May.
- Where we find some balance is the average amount of days a house is on the market, which has been around 20 to 22 since April of this year.
- Of the 27 homes sold in Owen Sound, five sold in less than 10 days or less. Those properties were priced between $300K right up to $625K.
- Four homes got their exact asking price.
- Regardless of rising asking prices, the overwhelming majority of homes sold in Owen Sound in June sold below asking.
The handful of homes that did sell above asking didn’t sell for huge amounts over the asking price. Only one home had a substantial offer above the ask -> $52K.
What can we look forward to in July…
Overall supply of housing in Ontario – not just Owen Sound – remains very low.
According to Canada Mortgage and Housing Corp, our biggest problem is a missing middle.
The two most commonly built forms of housing right now are compact condos and massive detached homes. This is expected to drive up the cost of all forms of housing in between.
An example would be a 2 bedroom bungalow – that is a home type you’ll see rising in price for the foreseeable future.
As mentioned earlier, the economists over at TD are predicting another rate hike this month, bringing us to a 5% interest rate.
If you’re a home buyer and you feel you’ve been priced out of the market, get in touch with me as there are many alternative solutions to buying a home.
Are you a home seller?
Reach out to me for a complimentary strategy meeting. I’ll evaluate your home and present you with selling strategies that will give you the best odds of getting what you expect.