Record-Breaking Summer Market Sales Is Expected To Continue
Since the entry into phase three of COVID recovery there has been tremendous progress that allows us to return to something a little closer to our normal lives this summer. The new norm consists of mask wearing, elbow bumping, foot shaking and waving. We are washing hands all day and sanitizing every chance we get. This virus is still among us and we have to be extra cautious.
What happens typically in April, when people dive headfirst into the real estate market, this year took place in June and July. Sales are up 23.7 percent over last month and up 27.8 percent over July of last year. New listings are up 15.5 percent over June 2020 and up 8.8 percent over last July. The average price for residential properties was $692,999, which is up 2.6 percent from last month and up 16.3 percent from July 2019. The number of active listings for the month was down 21.4 percent over last year.
What we see through June and July is a lot of home buyers coming back into the marketplace. A good number of jobs that were lost temporarily came back. There was a substantial recovery there, according to stats Canada for July. The more confident consumers are in an economic rebound, and the more stable their income, the more likely they are to consider a purchase. If they’re satisfied in their job situation, they’ll want to take advantage of the low-interest rates that are available to them right now. In March, The Bank of Canada dropped the lending rates three times, and the mortgage rates have remained low, allowing Buyers to leverage their purchasing power.
More and more sellers are going to list their homes. People who have been thinking of moving and are paying attention to the market are probably rushing to get their homes on the market as soon as they can, so they can capitalize on the intense demand we’re seeing. With the mortgage rates being so low, it’s a great time to buy as well as a good time for homeowners to remortgage their homes to take advantage of the built-up equity and the lower rates.
The real estate industry continues to make the necessary changes ensuring the safety of all active Buyers and Sellers with the use of hand sanitation, high-grade cleaning, masks, and virtual services. As we as a society get accustomed to this new norm.
The CRESI Team is committed to providing our clients with the highest level of services. We can visit you at your home or have a virtual meeting to assess your needs and next steps. The summer months are showing a healthy market, so the time to act is now. If you are considering buying or selling, we will guide you through the process with an exclusive degree of knowledge and expertise.