Get An In-Home Evaluation

Drew Woolcott’s Market Review – April 30, 2020

Thursday April 30, 2020

Market Updates

Rectangle Created with Sketch.

 

Welcome to our weekly update on what is going on in the market

A question we’ve been receiving a lot lately is if COVID-19 has had an effect on sold prices. As the number of sales and listings drop compared to last year – people are rightfully curious if the average sales price has dropped as well.

Before we dive into that, let’s take a look into some of the numbers that drive price – listings and sales.

In the core areas we serve – Waterdown, Flamborough, Ancaster, Dundas, Burlington + Hamilton – there were 142 new listings from April 21 to 27, compared to 401 in 2019 for the same time period. That’s a drop of just about 65%.

Total number of residential sales dropped to 132 from 263 for the same time period, or about 50%. So, the drop here wasn’t as dramatic as listings.

So what do these drops mean for average sales price? Interestingly they do not correlate, as we saw the average sales price actually increase 7.25% year-over-year for this time period. The average sales price in the Waterdown, Flamborough, Ancaster, Dundas, Burlington + Hamilton area is now $631,909, up from $589,151 in 2019.

What we take this to mean is that yes, people are not trading real estate in the same volume as last year. But those that are, are serious sellers and buyers. The market is still relatively balanced, and people are buying.

Another thing we wanted to touch on quickly is mortgage rates. Alexandra Trahiotis, a mortgage broker, shared that there are rates on a 5 year fixed as low as 2.59% and as low as 2.29% with a variable mortgage. She says pre approvals are really important at this time, and it’s also a great opportunity to do a financial review on high interest debt and restructuring equity to take advantage of the low interest rates.

Stay tuned for our next update. Stay home, stay safe

Leave a Reply

Your email address will not be published. Required fields are marked *