Sun’s Out, Buyers… Kinda Out?
Welcome to July!
June’s real estate market, even with the HOT weather, can feel surprisingly cool compared to the normal PEAK of Spring home buying season.
Imagine a pool party where everyone is invited, but only a few brave souls actually jump in – that’s kind of like a hot June market. It’s technically prime time, but the enthusiasm might not match the temperature!
HEAT
June weather is typically hot and sunny, making it ideal for outdoor activities, and, in theory, for house hunting.
REAL ESTATE
June falls within the “homebuying season” , meaning there are generally more homes on the market and more
Buyers actively looking.
THE DISCONNECT
While June is a peak time, it’s often not the peak. The market might have already started to cool down slightly from the Spring rush, even though the weather is still hot.
THE FUNNY COMPARISON
It’s like having a pool party with all the food and decorations ready, but people are standing around TALKING instead of swimming.
The market is “hot” in terms of potential, but it might not feel as lively as it could be, leading to a slightly deflated atmosphere, much like a sunny day with fewer people at the pool than expected.
Taking a closer look at June’s statistics shows some stability and consistency.
THE NUMBERS
Number of sales, months of inventory and average sale prices remained fairly consistent between May and June, especially for Quinte West,
Belleville, Brighton and Prince Edward County. The average sale price for the year went up slightly for both.
Brighton and Quinte West (both up 2-3% for the year), likely due to some higher sales in the month of June which brought up the yearly average a bit.
To put this in perspective, the average sale price in the month of June was about $90,000 higher in the month of June than it was for the month of May in both Brighton and Quinte West.
Reason – could be a few more expensive sales (like waterfront or larger homes) that skewed the average a bit.
In comparison, Belleville remained constant month over month, Prince Edward was up 60K in average sale price while Stirling/Rawdon went down over 100K month over month.
Remember, we will need a few more months of data to determine if this indeed a trend rather than just a peculiar month for sales.
The latter is likely more accurate, seeing as some areas were way up and others way down rather than a shift in the market.
TO SUMMARIZE
The market seems stable
Rates are decent
There are many options to choose from in most areas.
Homes are selling but only the ones that represent GOOD VALUE, meaning NOT overpriced.
Unfortunately, there are many of those types of listings that are just sitting. Now is as good as a time as ever to get into the market and get a great deal in real estate.
Even if you are not looking to sell, perhaps there is an opportunity for those of you who have some built-in equity in your homes.
RENTALS & BUILT-IN EQUITY
With rentals up significantly, rental prices at an all time high, and potential for lower purchase prices, using equity in your home to purchase an investment property could be an incredible way to make some extra passive income (money made while you sleep).
Talk to TEAM BALLAS for financing and market options, if interested.
