The final days of summer are here and August has historically been one of the slowest months for Real Estate, as everyone is busy on vacation, summer barbecues and simply enjoying the gorgeous warm weather.
According to the July Market Watch Report, market conditions remain far more balanced in July 2022 compared to a year earlier. Inventory is increasing and buyers are benefiting from a catalogue of choices. With a balanced market, we will see a return to more normal market conditions. Buyers will no longer be competing for homes at the level they were and conditions regarding financing and inspection will return as a normal addition to any offer. Moreover, Buyers are not being pressured to make any immediate decisions with tactics such as holding off on offers and bidding wars for homes.
To most experienced Realtors, the return to a more balanced market is a relief. It has been a whirlwind over the past couple of years with unprecedented price increases which escalated prices to an unrealistic level. First time homebuyers could no longer afford their dream home and as interest rates increase, this will prove to be a continuing challenge.
With significant increases to lending rates in a short period, there has been a shift in consumer sentiment and some buyers are definitely waiting it out to see if the prices will drop further; however, with interest rate increases expected Sept. 7th, any further decline in prices may cancel out any gains if the interest rates increase further.
My advice to anyone that is thinking of selling at this time, is to price your home according to the most recent comparable sales in your neighbourhood. You can not base your expectations on selling prices from 3 months ago and as prices continue to drop, you will need to be priced right for the current market conditions.
If you would like to get an idea of what your house is currently valued at, please don't hesitate to reach out and I would be happy to provide you with an up-to-date value.
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