Ricardo’s Market Update

Ricardo’s Market Update

According to Cliff Stevenson, Chair of the Canadian Real Estate Asssociation (CREA), the ideas on how to fix the housing market have taken centre stage in this election, with many long-simmering issues having had a big spotlight shone on them over the last year-and-a-half by COVID.

According to him and at a national level, “the numbers for August provided more evidence of what many of us already knew or suspected to be the case –this housing crisis will not go away on its own. As such, it’s encouraging to see all of the major parties looking at longer-term solutions to an issue that’s been around for a while. It also highlights how there are no quick fixes here, so this market will remain challenging for those who choose or have to engage in it”.

Our local real estate market is a confirmation of the above, with the month of August seeing the second highest month of sales in the last 10 years. Home sales were 16.9% above the five-year average and 25.9% above the 10-year average for the month of August.

Quinte sales activity
The number of newly listed properties was also above average for this time of year, but given the strong demand, the overall inventory continued to fall, maintaining the tight market conditions that have become common over this past year

Quinte new listings
Active residential listings numbered 439 units on the market at the end of August, a big decline of 35.7% from the end of August 2020. Active listings haven’t been this low in the month of August in more than three decades!

Quinte Active listings
Months of inventory numbered 1.1 at the end of August 2021, down from the 1.6 months recorded at the end of August 2020 and below the long-run average of 4.6 months for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

Quinte MOI
The average price of homes sold in the Quinte Association of Realtors in August 2021 was $597,828, increasing by 29.8% from August 2020.

Current and past clients ask me what to expect from the market in the near future. My answer continues to be the same as last year when we were in the midst of the Pandemic: with the extremely low inventory of houses and the high housing demand from local and mostly from out of town buyers, the current seller’s market will continue and property prices will continue to rise.

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