The Bank of Canada just raised it's key interest rate by 1%; the largest single increase in over 24 years. This will certainly have an effect on buying power and will force some buyers to the sidelines going forward. That being said, people need somewhere to live so the next few months shall be interesting to see how the market responds to the sweeping changes to interest rates.
What does this mean for the Real Estate Market in Pickering?
Since the rate hikes started in February 2022, sales have been decreased by 30% or more every month while available housing inventory has grown considerably.
Less sales coupled with more homes being offered should put some downward pressure on prices in the short term. Expect sales to be down for the remainder of the year and but prices are holding strong; if you disregard January and February of this year that is.
It's a weird time because you can say correctly say that prices in Pickering are up 10% since Christmas and down 10% over the last 4 months. Average price in Pickering for June '22 was $1,149,801 which is higher than at any point in 2021.
Pickering Year-Over-Year Change
June Avg. Price
June New Listings
# Of Sales
The silver lining to sales declining is that the homes that are selling are selling for a good price. Homes that are move-in ready, and updated are selling quickly and for a great price. Homes in need of updates, repairs and that are marketed poorly are having a tough time generating interest and require price reductions to get them sold.
The big difference between now and a year ago is that not every house sells. Last year, virtually every home was selling for well over asking regardless of condition. That's definitely not the case right now. If you want to sell for top dollar today you need to come correct with prepping your home, price it properly and find someone like me who will market the bejeezus out of your home.