New listings flood the local residential real estate market which continues to cool

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Home sales in the area fell last month as new listings flooded the market and set a June record as the residential real estate sector continues to shift amid rising interest rates.

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Sales fell nearly 16% from the same period last year to 190 units, down more than 10% from the five- and ten-year averages.

For the year, 1,071 homes changed hands in Huron-Perth, down nearly 11% from the same period in 2021. Julie Heitbohmer, president of the Huron Perth Association of Realtors, said c It’s a trend that started a few months ago. .

“New registrations recorded an unexpected increase in June, reaching the highest level for that month in history,” she said. “With demand decreasing and supply increasing, the market has shifted gears out of sellers’ territory and into a more balanced position. This was accompanied by more modest benchmark price gains, with benchmark price levels appearing to have peaked.

The benchmark price — the value of a “typical” home in a community, based on the most popular combination of features — for single-family homes last month was $633,800, a 16.4% increase from compared to June 2021. In comparison, the benchmark apartment price was $571,000, up 27.2% from 2021 levels.

The average price of homes sold in June 2022 was $684,111, up 11.6% from June 2021. The average year-to-date price of $720,152 is up 24.5% compared to the first six months of 2021.

New listings were up 43.6% from June 2021, with 395 new residential properties on the market, more than 31% above the five-year and 10-year averages for June.

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There were 429 residential listings on the market when the calendar rolled over in July, a 99.5% increase from a year ago.

Inventory months numbered 2.3 at the end of June, up from the month recorded at the end of June 2021 and below the long-term average of 3.5 months for this time of year. The number of months of inventory is the number of months it would take to sell the current inventory at the current rate of sales.

The residential real estate market has cooled considerably across the country as interest rates continue to rise.

“The cost of borrowing has overtaken supply as the dominant factor affecting housing markets right now,” Jill Oudil, president of the Canadian Real Estate Association, said in a statement. “The supply problem has not gone away.”

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