It’s a record high demand, with record low supplies.
Andrew Brotton, President of the Renfrew County Real Estate Board, says the market in the county is currently going through a massive correction in prices. April saw more units sold that month than at any time since records began, with April 2021 sales at 268% over what they were this time last year. However, residential listings at the same time have dropped to the lowest they have been in 15 years. With more and more people moving in from the large cities, residential listings are staying up for no more than a week. With the crunch in supply, the average home price now sits at $408,000, which is up 37% since last year.
Brotton says that with the market as hot as it is, prices will only go up for the time being. During this time, a practice of holding offers and bidding has taken hold, causing people to ask well above the initial asking price. Broughton predicts that this practice won’t continue, and once realtors find the actual value of homes in the county, prices will level out.
Meanwhile, Brotton cannot predict what will happen on the supply side. While supply levels are increasing slowly as homeowners realize their home has gained value, many wonder what they will do once they sell their homes. Between increased building costs, rising home prices and a no-vacancy rental market, some homeowners don’t see much to gain in selling. With the supply of homes as unsteady as it is, Brotton is unsure how it will react as people continue to buy up rural properties.