Record low inventory levels means continued upward pressure on pricing
Not to sound like a broken record, but low inventory is our biggest challenge in the local real estate market, just like many areas in Ontario. Too many buyers chasing too few properties will mean continued upward pressure on pricing for the remainder of the year, and first-time buyers will especially find it a difficult market to buy in. Make sure you have all your ducks in a row, financing all ready to go, and a realtor who is on the ball and ready to work hard for you.
Inventory of homes for sale in the Centre Wellington area dropped below 40 homes in August, and while we expect higher listing activity in September, it will be insufficient to meet demand. While new construction is ramping up, many of these homes will not be ready until late 2022 or 2023, so that does not solve the supply-demand issue in the short term. Buyers coming from the GTA had slowed down in our area during the latter part of June and July, but they seem to be coming back in numbers—and ready to buy. While the biggest demand is for homes under $700,000, activity is now picking up at all price points again, including over $1 million plus. Again, not like the first 5 months of the year, but certainly there is increased pressure on pricing due to low inventory.
Continuing record low interest rates are obviously a contributing factor to what is going on in our market as well. (Keep in mind things remain unpredictable; while many homes are selling quickly—some with multiple offers—other homes are taking longer to sell. Pricing and marketing your home properly is important.)
Condo sales, which had gone a bit sleepy over the past 12 months, are back in demand. I also have several buyers wanting to buy a character home in the older part of Elora—so if you know someone thinking of selling, my phone number is below. And as I said last month, bungalows, country homes, investment properties and of course homes under $700,000 are in short supply.
Take outside pictures of your home now—just in case
One thing I did want to mention is that even if you are not thinking of selling in September or October—but might want to sell during the November to March time period—get pictures of the outside of your home done now while your home looks its best. Trees without leaves and snow on the roof are not the best marketing photos for your home. Just like we do every year in September/October, we will take pictures of the outside of your home at NO COST to you. If you end up deciding to sell this winter, we have great pictures to market your home. If you don’t end up selling, that’s ok, at least we were ready just in case. Again, no cost to you—so think about it.
And if you are thinking about selling by the end of October, NOW is the time to get in touch with us and start planning so we can do a proper job of marketing your home—and get you the best price.
Is there a real estate issue you would like me to talk about in a future article? Email me at firstname.lastname@example.org.
Until next month, take care.