High Demand For Homes Continuess
The Big Picture
The overall real estate market is very healthy and continues to reward local homeowners. Demand for properties continues to be higher than last year. The number of homes listed for sale is dropping quickly, causing inventory to fall also. Approximately a quarter of all properties sold over their asking price. We expect aggressive conditions to continue through September and October.
Advice For Sellers
Homes that are priced at their actual market value and are staged and prepared for sale are receiving the most attention and highest offers. Two-thirds of homes sold are below the asking price, so a winning pricing and marketing strategy is critical for successfully selling in this market.
Advice For Buyers
Buying a home in the fall and winter means less available choice as the total inventory can be half or less of the spring market. We usually expect less competition for buyers as well; however, this year high demand for homes has continued through the summer months. Be prepared to pay full-price or better for premium properties or go searching for a deal where the other buyers are ignoring.
Advice For Investors
Increasing prices and less available inventory can make it challenging to purchase an investment property that meets your criteria. We recommend hunting for off-market properties and also under-utilized properties where the zoning allows for higher density. When selling your investment, ensure your tenants are paying market rents, or the value of your property will suffer.
Renovators and flippers are having a harder time finding properties at a good enough price to make a profit. We recommend moving up the price point from entry-level homes to medium to large homes that require cosmetic upgrades. Larger properties are more expensive to acquire and renovate, but there is less competition to buy and a lower supply of updated homes in established, desirable neighbourhoods.
The demand for homes in Brantford continues to be strong through July and August, higher than this time last year. The number of new listings is dropping rapidly along with the overall active listings inventory, or the total number of homes for sale. As new and active listings start to decline, yet overall sales remain steady, it is a sure indicator of a strong market as we transition into the fall. As demand for homes begins to increase again, the informed seller will be at an advantage.
Paris is showing the same trends as Brantford, yet the inventory of active listings is currently relatively higher than the demand for homes. However, the trend suggests that with increasing sales and fewer new listings we will see that the gap between the inventory of active listings and overall sales may begin to shrink.
Brant County Highlights
Data indicates that home sales have cooled off in Brant county, with a significant drop in demand for properties, while supply and inventory hold steady. This could give home buyers in the county an advantage in the market.
Area Home Prices Rising
Home prices continue their upward trend throughout the year. The average sale price of a detached home in Brantford is currently at $436k, in Paris $575, and in the county $687k. While there are fluctuations in the month to month data, the trend is clear and shows growth in all markets vs 2018 prices. (dotted lines)
Sale Prices vs. Ask Prices
Sold prices have been moving closer to asking prices all year. This represents the very dynamic Brantford and area market, effecting both the buyer and seller. This tells us that offers are coming in closer to asking price all year which is an effect of the lower inventory and high demand. Homebuyers are making stronger opening offers and sellers are willing to negotiate less.
Time To Sell
The time to sell a home has been decreasing in Brantford and the County while increasing in Paris. As the active listing inventory and new listings decline, the rule of supply and demand becomes clear. When supply is low and demand is high, this puts the seller at an advantage. We are watching this trend in Brantford and Brant County, while Paris is moving in the opposite direction.
Properly pricing your home to sell is more important than ever- 26% of homes in Brantford are selling OVER asking price, 18% in Paris and 13% in Brant County. Still, more than half of the homes sold are going for under asking price. This could be a reflection of the inventory and new listings that were outpacing the demand for homes, putting the buyer at an advantage. Setting the asking price as close to market price as possible ensures that the seller will get the most (or more) value for their home, as well as potentially reducing the days on market. Choosing an experienced and informed realtor is the best asset in this active market.