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For .pdf version, please click here: Newsletter – March 2020
New record highs as interest rates descend
Inventory levels are at an all time low (only 2 weeks of supply available), while prices are now at an all-time high. Intense bidding wars have become the norm with list prices being a form of advertising rather than suggestion of market value. This is eerily reminiscent of the supercharged spring market of 2017, which only faltered after government intervention. The average sale price for February 2020 was $793,300, up 12.4% over the figure 1 year ago and the highest number ever recorded in Milton. The 189 units sold last month represent an increase of 36% of volume over last year’s number as opportunistic sellers try and cash in or upgrade.
Last month, 71% of listings sold over the asking price, with all sales getting an average of 102.3% of list. It’s getting tougher and tougher for buyers not only to purchase a house, but to determine the market value in this dynamic market. A very recent 50 basis point cut to the Bank of Canada interest rate to help mitigate economic effects of the Coronavirus should further add fuel to the fire. While we have yet to see any impact on the real estate market due to the virus we will be keeping a watchful eye, but for now things show no sign of slowing down. As of this writing a 5 year fixed mortgage can be had in the range of 2.6-2.7%, but that is trending downwards.
If you’d like to discuss the best way to navigate this tricky market, or anything Real Estate related, we’re always available to chat.
Your local Real Estate professionals,
Kyle and Jay