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 June 2023. Make sure you read to the end of this blog post so that you can take advantage of some hidden opportunities whether you’re thinking about buying or selling.
Market Overview
Okay let’s get started. In June there were 4.8 months of supply available in Huron County, which puts us in a more balanced market.
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 average sales volume. 4-6 months of inventory indicates a more balanced market, 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 lots of properties available for buyers to choose from which can drive prices down.
If we compare that to this time last year we are up 78% from June 2022. So this is definitely an advantage for buyers to have more to choose from when shopping around.
Average Price
The average price for a home in Huron County was just over $646,000 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 $700,000.
The average price for all residential is only down 3% vs this time last year which is pretty awesome for sellers because buyers have still been adjusting to the Bank of Canada interest increases. Another positive for sellers is that we are up 8% vs last month.
List to Sale Price Ratio
Moving along, the average list to sale price ratio was 99.5% in June.
That simply means that properties were selling for 99.5% of list price. So justtttt under asking price which is fantastic for sellers. That’s up another percent from last month, and only down 2% compared to last year where sellers were averaging 101.8% of list to sale price.
Now when you’re looking at this stat, let’s remember 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 the market has changed in the last year. Last month we were seeing many homes under the $400,000 mark run into multiple offers. Some properties gaining an additional $10-$50 thousand over list price which will alter this number as well.
Days on Market
Now you might be wondering how long it’s taking properties to sell?
On average in June in Huron County it was taking 39 days for a property to sell. That is trending down from last month where it took 41 days on average.
So just know that if you’re planning to sell your home it’s going to take longer than it has in the past. In my experience in the last few months, sellers are really understanding that the market will take a little longer to sell their home. A benefit I have found with my clients lately is that transactions between the buyer and seller seem to be much calmer, understanding and kinder when trying to negotiate both sides of the deal. Which in the end, makes for a much easier process and way less stress for both parties.
As we enter the summer months, the market will naturally start to cool due to active buyers putting their search on hold for vacation, kids and so on. This is a recurring seasonal trend. But what isn’t a seasonal trend and something to keep in mind when putting your house up for sale right now, is what we experienced in the last month. The Bank of Canada’s decision to increase its policy rate by 25 basis points, which may put a chill on the housing market.
We can add a few points to this in a minute.
Interest Rates
Ok if you’re thinking about buying real estate in the near future, some of the best mortgage rates are ranging between 5.09% to 6.05% depending if you are going fixed or variable and whether you’re getting financing through bank or an alternative lender.
As I mentioned before the Bank Of Canada did raise its policy rate by 25 basis points and while that doesn’t always mean it impacts the housing market, especially when most people are getting into fixed rates right now. The fixed rates are now well into the 5% range as bond yields have been trending up, impacting the fixed rate which ultimately makes it harder for some buyers to qualify for a mortgage. As there is talk about the possibility of another increase later in the year I would encourage any buyers thinking about getting into the market to do it now to lock in or at least talk to someone who can help guide you in the right direction.
If you need help with finding a trusted mortgage agent, 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. Feel free to reach out to me HERE to connect with our in house team.
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.
Summary
So in summary when you look at June’s market statistics we saw a good month for sellers as the average price increased by 8% over May.
The market is moving along as the days on market decreased by a few days and we saw an increase of list to sale price go up as well.
If you’re thinking of selling your home and you believe you may be in the $400,000 range, now could be a great opportunity to upgrade into your next property.
Homes that are clean, staged, priced properly from the start and have a good marketing plan will do well but if your overpriced right out of the gate, expect your house to sit.
Interest rates have already risen since my last market update so we will continue to see what happens when they meet again July 12th.
If you’re thinking about making a move this fall or want to be in a new house by Christmas. Yes I know I said Christmas… But now is the time to be thinking about these big decisions. Start getting the ball rolling now by contacting a REALTOR® and/or a mortgage broker who can discuss the best options with you with these changing Bank of Canada rates.
Also feel free to check out my blog post on The First 5 Steps To Selling Your Home to get started today.
Feel free to check out my other blogs and I’ll be back next month with an updated report.
- MEGAN PROPER
Look out for my upcoming blog on What Buyers Should Expect Of The House On Closing Day coming soon.
