Cambridge Media Release for April 2018

We are now 1/3 of the way through 2018 and the market correction has continued. Instead of a rally and an increase in the sales numbers, we are still seeing a consistent trend downwards. 

In April of 2017, we processed 336 listings and sold 265. This means 78.87% of the listing were sold while, this April (2018), we have listed a comparative number in the amount of 323 with 191 sold. This represents 59%. In other words, 6 out of ten homes listed were sold. The average time on the market for this past April was 17 days and that has been the fastest time thus far. January was 32 days. February was 19 and March was 23.  The overall sales from a year ago declined 27.92% and 2.1% from a month ago. 

In April of last year, the average single-family freehold ( single detached, freehold & condos) price was $512,423. It is down 5.7% to $483,166 approximately. The average condo price was $329,554 in April 2017 and is now $310,417 for this April. A drop of also 5.8%. Compared to a month ago March, it has dropped 13.6% from $359,456. The year to date average though is $337,598 up 9.1% from $309,350 last year. 

That trend continues with the single-family detached homes that were an average price of $539,638 a year ago April and also fell 6.1% to $506,559. 

The one plus in all the decline was the number of condo listings. We saw 11.4% more condos listed in April of 2018 than the same month in 2017 (39 vs 35).

With all that being said, we are still seeing multiple offers for homes under $500,000. The key is pricing! A reduction is a correction and after approximately two weeks, market tolerance would have been established. Buyers are more informed today than ever. Some sellers are still attached to the values of last year. We believe this is a part of the unsold inventory. Lending has become more stringent and there are far less capable buyers. The faster Sellers realize this, the more the sales to listing ratio will narrow. 



RBC has just released its latest monthly housing market update entitled “Home resales stabilize in Central Canada in March; national prices still easing".

Highlights of the report:

·         Existing home sales eked out their first monthly increase in three months across Canada in March, rising 1.3% from February. This came on the heels of a significant drop of more than 19% in the previous two months.

·         The March increase may be an early sign that the initial effect of the new stress test is beginning to fade though not everywhere in Canada at this stage.

·         Gains in Manitoba, Ontario and Quebec were mainly behind the increase at the national level. Activity declined further in almost all other provincial markets.

·         The national benchmark price decelerated to its slowest annual pace (4.6%) in more than four years primarily reflecting an ongoing price correction in the Toronto area where the annual change is negative for the first time since 2009.

·         More sellers put their properties up for sale in Canada in March, which is keeping demand and supply in balance in most markets across the country.

·         The uptick in national resales in March is consistent with our view that Canada’s housing market is now beginning to move past the payback period for activity pulled forward ahead of the new stress test on January 1, 2018. The way forward is likely to be uneven though. New market-cooling measures announced in the BC budget are poised to lengthen the adjustment process in that province.

Link to the full report

To view, print and download the new report, click on the following link:

http://www.rbc.com/economics/economic-reports/pdf/canadian-housing/housespecial-apr18.pdf




Cambridge Residential Stats for February 2018
 
The title to be awarded to February 2018 sales should be, 'Waiting to Exhale." The is due impact to the declinging listings to sales ratio just ahead of the traditional peak spring market.

​There were 215 listings processed this February (Freeholds and Condos). Of that number, only 124 were sold. This represents justs over half of the listings or more previsely, 57%. Compare this February's sale to that of 2017 and we are down 32.97%. The number of listings processed in February 2017 were very similar at 212 with 185 sold.

​However, in a shorter time span, there were 11 more sales in February than January 2018. This is an increase of 9.7%. The average price for both segments (Freehold and Condos combine) has shown a moderate 1.2% upswing from one month to the next ($451,259 Jan & $456,460 Feb 18).

​Pull apart the Semi's and Freehold towns from the equation and you find Single Detached home value remains consistent at approx. $515,777, a meagre 0.3% down from the same month a year ago. However, that average price rose 5.% from it's January 2018 average of $487,274

​Although this is early in the year, this moderatge 1.2% overall month increase if hold steady could result in 12.24% at year-end. A more tolerable increase from last year and an excellent indication of appreciation compared to the average yearly 4-5% we saw over the past 15 years prior to 2017.




Cambridge Residential Sales Roboust in December 

There were 102 single family residential units sold through the Cambridge MLS® housing market in December 2017 - this represents a 7.4% increase in levels reported in the same month a year earlier. Of the 102 residential units sold, there were 81 single family freehold detached residential units which represents a 9.5% increase in levels reported a year earlier.

The average MLS® single family freehold residential unit price was $468,612 in December which represents an increase of 11.5% over the same month a year earlier. The average MLS® single family detached residential unit price was $491,995 which represents an increase of 9.2% from a year ago.

The dollar volume of all single family freehold sales in December 2017 was $47,329,774 which represents an increase of 18.5% from a year earlier.

Disclaimer: Effective March 1, 2017 the statistics for the Cambridge Association of REALTORS® represents only single-family freehold & single- family freehold detached properties sold in the City of Cambridge and the Township of North Dumfries and does not include condominium sales.



How a Home Inspection Helps You

Whether you're considering buying a particular home, selling your current property – or both – a home inspection can help.
A home inspection is an inspection by a qualified professional who takes a close look at every aspect of a home – structure, wiring, plumbing, and more – and identifies issues you may not have noticed yourself. For example, a home inspection can reveal that a furnace will need to be replaced soon, or that there is a water leak into the basement that needs to be fixed.

You'll definitely want to get a professional home inspection before you buy a particular property. That's why most offers to purchase a home are conditional upon passing a home inspection. (The last thing you want is to buy your dream home only to discover that the wiring needs to be updated!)

You may also want to get a home inspection on your own home before you list it for sale. A certificate from a qualified professional that states that your home passed inspection will make your property more attractive to buyers. Many reputable home inspectors are members of a professional industry association.
In Canada:
• Canada Association of Home & Property Inspectors.
(http://www.cahpi.ca)
• Professional Home and Property Inspectors of Canada.
(http://www.phpic.ca)
• National Home Inspectors Certification Council.
(http://www.nationalhomeinspector.org)
 
It's important to note that certification or licensing is not a requirement in many jurisdictions. So select a home inspector carefully. Need to find a reputable home inspector? Call today.


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