The Warm Weather May Be Gone But The Fall Market Is Keeping Things Hot
September marks the end of summer and has brought with it the reminder that cool weather is just the beginning of all that this beautiful fall season has to offer. This month of transition for many Halton households was the back-to-school experience for children who are either attending their local schools or who are engaged in virtual learning. The last few months have been paving the way for our ‘new normal’ which has now created a routine that is being established throughout Halton communities and so it is more important than ever to keep doing our part to keep the curve from increasing once again so that all of our family and friends can stay healthy and stay safe.
The new-found importance of a home that requires it to function as a home office for many and a home school for some, a desire for more outdoor and personal space to compensate for not being able to enjoy our communities so freely as we once did, not to mention the lower than ever mortgage rates at 2% on a five-year fixed term will cause the spur of real estate activity this fall. Included in the fall housing activity will be listings that will come to the market because of COVID-19 and the delayed mortgages now coming due, however, there are still sellers who are still waiting to list their properties due to the virus. Some purchasers have also chosen to continue to wait until they make their purchase and move.
A big part of what we’re seeing right now is the snapback in an activity that would have otherwise happened earlier this year. Recall what was happening before the lockdowns, we were heading into the spring market with many thoughts of how busy it was going to be as February and January were very active months. Things may then have gone quiet for a few months, but ultimately the market we’re seeing right now heading into the fall is very similar to what we were heading into back in March. That said, there are some new factors at play as well. July and August were recording setting and breaking months nationwide. In July, national home sales broke a new record of 26% rebound as well as reaching the highest monthly sales figure on record going back more than 40 years. Than August even higher numbers in sales were reported.
According to a survey conducted by Leger on behalf of RE/MAX Canada, 32% of Canadians no longer want to live in large urban centres, and instead would opt for rural or suburban communities, with many growing just outside the GTA. This trend is stronger among Canadians under the age of 55, rather than those in the 55+ age group, who still want to be very close to city amenities, like their doctors and local hospitals.
Not only are Canadians more motivated to leave cities, but changes in work and life dynamics have also shifted their needs and desires for their homes. According to the survey, 44% of Canadians would like a home with more space for personal amenities, such as a pool, large yard or even a larger balcony for those in condos.
The REALTORS® Association of Hamilton-Burlington (RAHB) reports that sales are down 21.14% over last month and up 12.7% over August of last year. New listings are down 16.1% over July 2020 and up 7.3% over last August. The average price for residential properties was $694,690, which is up 0.24% from last month and up 16.3 percent from August 2019. The number of active listings for the month was down 18.6% over last year.
The Burlington-Hamilton Residential real estate market is currently experiencing strong seller’s markets, with up to 80% of all available inventory selling out each month. The month of August showed to continue to remain steady in terms of the average sale price of $853,564 compared to August of 2019 at $778,359 average sale price. The number of sales and new listings seen in the Burlington market did decline ever so slightly but this did not have any negative effect on what the homes are selling for in this heavily competitive market.
So if you are thinking about getting your house on the market, the Fall market has just begun and listing anytime between now and just after Thanksgiving will allow you to move into your new home before Christmas. Currently, with interest rates as low as they are, this is a great time to buy an investment property or a larger home. We can help with what happens next, let’s start with a conversation when you’re ready.