Real estate

Increase in real estate listings easing pressure on Sarnia market

According to the Sarnia-Lambton Real Estate Board Chairman, August’s 267 new real estate listings in the Sarnia area broke a decade-long record and helped relieve pressure on the local market.

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According to the Sarnia-Lambton Real Estate Board Chairman, August’s 267 new real estate listings in the Sarnia area broke a decade-long record and helped relieve pressure on the local market.

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The surge in new listings came as the area emerged from a long-running seller’s market, which saw a limited supply of homes that were often bought for more than their listing price just days after prices rose. real estate signs.

“August was a new 10-year high for the number of new registrations. . . which is a good thing,” said board chairman Rob Longo.

That means buyers have more choice and everyone involved has “more time,” he said.

Rob Longo, President of the Sarnia-Lambton Real Estate Board.
Rob Longo, President of the Sarnia-Lambton Real Estate Board. Photo by photo archive /The Observer

“It takes an average of 21 days now for homes to sell,” which is still “pretty fast,” Longo said, but “it takes enough of that pressure off people can take their time, make their decision.” .

In June, homes sold locally after only eight days on average.

Homes sold locally in August cost an average of 97% of the asking price, Longo said.

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The Sarnia-area median home price of $445,000 in August was about 1% higher than the same month last year, he said.

“That’s kind of where we expect the trend to go down in Sarnia-Lambton,” with “lower and more consistent growth than we’re used to seeing in the 3-5% range per year,” Longo said.

He does not expect to see prices fall locally.

“The market is still good,” he said. “Things are still very busy and prices are holding up.”

There have been warnings about the Canadian housing market lately, including a report released earlier in the week by TD Bank suggesting that the average price of a home in Canada could drop 20-25% by early 2023 from its peak earlier this year.

“There’s a lot of uncertainty when people see these headlines,” but the Sarnia-area market held steady, Longo said.

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“Anytime you see housing market stories, they’re going to be mostly led by Toronto and Vancouver,” he said. “They have had a bit of a setback this year. Toronto has dropped 15 or 20% in selling prices.

“It’s definitely not something we’ve seen here. We also haven’t seen that aggressive growth they’ve had in recent years.

Prices in Sarnia have increased, “but not quite to that extreme,” Longo noted.

The Bank of Canada has raised interest rates to fight inflation, and Longo said he expects another hike in the coming weeks.

The Bank of Canada’s actions raised mortgage rates, which “triggered the market to be cautious,” Longo said.

But, he notes that “stress test” requirements for mortgages introduced in Canada several years ago “helped cushion that blow.”

“Anyone who has been approved for a mortgage in the last four or five years has been approved at rates between 5% and 6%,” which should put them in a “safe and comfortable position at renewals,” said Longo.

“I think people just make their adjustments and take that into account.”

With files from The Canadian Press

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