Right now, people are hanging on to what they have, due to uncertainty in the Real estate market.  Unemployment remains low and the economy is not in recession yet, with inflation still high at 5.82%. Food prices are a big factor affecting everyone running above 10% with grocery stores blaming the supply chain while making record profits. Rumors abound that the Feds will raise interest rates further because of these factors.

At the same time the dilemma is that rental incomes are up over 25% in our area and vacancy rates are at 99% or available properties. Our population growth due to lifestyle, immigration, refugees, significant new employment opportunities is adding to the problem. Our local Builders are facing increased building costs for land, lack of skilled trades and increased materials costs and thus new builds are not taking place.  

What Should Buyers and Sellers Do?

In other words, my message to “First Time Home Buyers” is BUY NOW!  Basically activity is very low, prices have bottomed out and starting to rise marginally and you are in a position not be in a competitive situation and can negotiate marginally while putting all clauses needed to protect yourself in your offer.

Move-up Buyers should list their home first with an “Experienced Realtor” who will analyze the selling environment and maybe not get what you thought you’d get, but then you will be able to buy your desired property, without bidding wars, and negotiate the purchase price marginally while place the conditions that you need in your offer. 

Based on these projections it will take longer to sell. If you need to sell, it is now a good time to list. Over the last 2 tremulous years the bestselling months have been a strong March followed by good sales in May and June. 

The Market Activity:

Sales have slowed dramatically to the slowest since the global recession in 2009.  Demand is pent up, but people are fearfully waiting to see what the future holds.  In December last year 78 homes changed hands across the County. In January 2023 we saw Buyers only purchase only 85 homes across Oxford County.

The movement has been erratic this year with June not historically being the biggest home sales month, as in the past.  The slowdown started in April this year with the first of the interest rate raises.

The time it takes to sell the average home has now jumped to 50 days due to a very inactive marketplace.  This is a significant slowdown from even the previous months, December was the previous high in 2022 at 34 days   We are now sitting on an average of 6 months of supply down from 7 months in December.  Six months is basically the average supply level in this market based on slow sales. Negotiations are now occurring on a regular basis. The average home is now receiving between 96% to 98.3% of their asking prices. The strongest category is homes priced between $350,000 and $400,000 while the lowest categories run between $200,000 and $300,000. The other categories all sit in the mid 97% range.

The average price of a Home in Oxford County rose marginally on a small sales base to $585,000.00 from the $570,000 median price achieved in December. The average price has hit bottom and now is rising marginally.  I do not believe we will see  lower prices in this market. Any increase will be marginal. 

If you want to talk or get more specific information, just give me a call. You know I am always here ready to help.

Call me at

519-535-3975

visit my website at :

gibheggtveit.remaxcentrecity.ca 

Email me at

gibh@remax.net

or  

Text me at

226- 407-9022

And stay safe. Hope to see you soon!

Gib Heggtveit

Real Estate Broker

RE?MAX Centre City Realty Inc.