The last few weeks of summer are upon us! It won’t be long before we’re deep into the autumn season. As we work our way through the remaining summer days, what should you know about today’s housing market trends? Here’s your end of summer market update for Barrie, including where we may be headed in the future.
Current interest rates
Interest rates have experienced a decent amount of activity this year. After a period of rest between January and June, the Bank of Canada raised rates in early June, and again in July. Right now, the overnight rate is five per cent, while the retail prime rate is 7.20 per cent. This is a 22-year high mark for the overnight rate, which is in place as we continue to combat inflation. Since rates have now been rising on and off for almost a year and a half, many Canadians are feeling the pinch in terms of mortgages, food prices, and general costs of living.
The next Bank of Canada announcement is on September sixth, where we will see if interest rates make any more movements.
Supply and demand
According to Zolo, there have been 1021 new housing listings in Barrie over the past 28 days. This is compared with 264 homes sold during the same time period. This implies that supply is outpacing demand in Barrie these days, which will come as a relief to potential buyers. Homes are spending an average of 24 days on the market, and are selling for 99 per cent of their asking price. Home buyers have not been as rushed in the market this summer as in past years, nor are they necessarily expected to make offers far beyond listing prices. There have likely been fewer buyers on the market this year as a result of high interest rates.
Data from Zolo shows housing prices are still rising in Barrie. The average housing price is currently $787,000, which is a five per cent yearly increase and a 2.3 per cent monthly increase. These aren’t massive gains, but they do show how the housing market continues to be fairly active and people are still taking the dive into homeownership.
What should we expect for the rest of this year? In terms of interest rates, the Bank of Canada has indicated that inflation still has not hit the target range, and further rate hikes may be necessary. If this holds true on September sixth, it means we may see another increase to the overnight rate. This will continue to have an impact on real estate as we approach the fall season. This is often a busy time for buyers and sellers, so both groups may continue to be impacted from this year’s market. While the Bank of Canada has indicated they expect a recession to occur in 2024, we likely won’t see interest rates go down again before then.
Contact a broker for your mortgage needs!
Whatever your mortgage needs are, having a broker on your team is essential. If you want to buy a home, you can discuss your financial situation with your broker to determine where you fit into the market. Existing homeowners may also want to consult a broker if they are approaching their renewal time, or have any questions about a potential refinance. Brokers are objective and work to secure the best product for you. They are one of your most valuable market resources!
This year’s summer market update highlights interest rate trends, housing prices, and where we may be headed in the future. Of course, nothing is set in stone. That’s why it’s important to contact a broker if you have any questions about jumping into the market. We’re here to provide you with the best guidance possible as we head into the fall season.
If you have any questions about your mortgage, get in touch with me!