If you’re a homeowner in Huron County or planning to become one, I’m going to be sharing an update on the latest real estate market trends from May 2023. Make sure you read to the end of this blog so that you can take advantage of some hidden opportunities whether you’re thinking about buying or selling.
Alright over all from a high level perspective, in May there were 3.8 months of supply available in Huron County for all residential sales, which believe it or not, keeps things in a seller’s market territory still.
What does that mean?
Months of supply tells you how many months it would take for all of the homes currently on the market to sell, given the level of demand. 4-6 months of inventory indicates a more balanced market where prices are neither rising nor falling, less than 4 months means there’s not a lot of inventory available which can drive prices up. More than 6 months of supply means there’s a lot more properties for buyers to choose from which can bring prices down.Were just about on that cusp of having enough inventory to push into a balanced market but not quite yet from a numbers perspective.
The market does seem considerably less crazy than the last few years when we use the term sellers market, but we are seeing select properties turn into multiples in the last month or so.
How is that number trending vs. last month?
Well it’s up from 3.5 months which doesn’t surprise me, as we’re still in a busy spring market when more properties tend to get listed, so I wouldn’t conclude yet that it means the market is shifting beyond what it normally does this time of year.
The average price for a home in Huron County is $597,401 but keep in mind that is the average across all areas for all residential which is going to include larger farm properties to smaller priced condos.
The single family home category averaged around $654,528.
The average price for all residential is down 3% vs this time last year, and was up 18% from March to April but peaked out in April and our May numbers show that it actually went down $6% vs last month.
So time will tell what the summer months will bring for us.
List to Sale Price Ratio
Moving along, the average list to sale price ratio was 98.4% in May. That simply means that properties were selling for 98.4% of list price. So just under asking. That’s up from 97.9% last month, but down from a whopping 13% vs last year. Remember though 98.4% is still a great number for sellers.
Now when you’re looking at this stat, you’ve got to keep in mind that it has a lot to do with the strategy a seller uses when they’re listing their property. A year ago everyone under priced their homes to entice bidding wars. Although it would seem sellers aren’t doing that these days. In the last 2-3 weeks we are seeing sellers hold on offer presentations and creating bidding wars on select properties. This doesn’t mean the property will go into multiples with this strategy but it’s one of the ways sellers can market their home.
Days on Market
Now you might be wondering how long it’s taking properties to sell?
On average in May in Huron County it was taking 26 days for a property to sell. That is trending up from last month where it took 22 days on average, and obviously WAY up from last year where it only took 12 days, that’s a 225% increase.
Which is to be expected as buyers are now more cautious and taking their time shopping around now that interest rates have increased in comparison to the last few years.
So just know that if you’re planning to sell your home it’s going to take longer than it has in the past. Once again, time will tell if this is market driven or just seasonally driven.
Ok if you’re thinking about buying real estate in the near future, mortgage rates are ranging between 4.89% to 6.7% depending if you are going fixed or variable and whether you’re getting financing through a bank or an alternative lender. The Bank of Canada does meet on June 7th so we will see if they raise the rates again or if they will remain stable for the time being. Everybody’s lending situation will be different in this scenario so speak to a professional or if you need help with this I can help. We have an in-house mortgage team called Guiding Star that is powered by Dominion Lending Centre that can provide a pre-approval within 24 hours of receiving documentation.
Market Trends Insight
So in summary when you look at May’s market statistics, although it looks like things capped out last month with the price reducing by 6%.
We still saw a 60% increase in sales with a sales to list price of 98.4%. Which means that the market is moving, buyers are out there and ready to strike a deal with sellers.
It will be very telling of how our market shifts after June 7th when the Bank Of Canada meets again. If they raise the rates again will we see the market slow down, or will it just naturally soften in the summer months like it usually does. That will be interesting to see. Either way, one really important thing to understand is that Huron County market statistics are very different from big cities you hear or read about in the news.
So the bottom line is that whether you’re buying or selling, your situation is unique and a general market update should be taken with a grain of salt. If you want an accurate market analysis for your home or you’re thinking of buying and want to know where hidden opportunities may lie, you can either request a free no-obligation market evaluation or book a call with me to have a no-pressure conversation about your options.
I’ll always just give you the down to earth advice so that you’re informed to make the best decision that’s right for you, based on your personal situation. If that would be helpful, you can click the link HERE and set it up.
Feel free to check out my other blogs and I’ll be back next month with an updated report.