As I had predicted, Centre Wellington & area’s June real estate activity was less than June 2023. The market will continue to slow as we go into the summer months.

Unsurprisingly, the quarter point interest rate reduction didn’t have much of an immediate impact, as it will take several more cuts before lower rates have any real material effect on the market.

So, who is… or isn’t buying? Well, first-time buyers are largely out of the market at the moment – for various reasons. Affordability being the big one. And just being concerned in general, wondering where the economy is going and will house prices go lower – so not in a rush to make any offers.

Move-up buyers and buyers with lots of equity in their current home will offer if they see that exact place they have been looking for. But even then, they are taking their time in making decisions.

Contractors and builders are offering on places where it makes sense to tear down an existing home and build a new one, or perhaps a fixer upper where they can create 2 rental units in a home. And people with money still have money, so a few higher priced homes (over $1.4 million) are selling.

As I said last month, for sellers – this is increasingly a market where your property must be a 10 out of 10 or attractively priced to stand out and sell. Inventory in our market continues to build as more houses are getting listed than selling.

This is putting downward pressure on pricing in certain segments. For now, we have a standoff in the market once more – where many sellers don’t want to lower their price – and buyers do not want to pay that much (or simply cannot).

To be clear, houses are still selling – just very slowly in many cases. Showing activity on listings has dropped noticeably. The largest downward price adjustments we have seen in the resale market are for new subdivision 2 storey homes. And homes in the $1.0 to 1.4 million range are definitely struggling. As are condos over $700,000.

The reality is there are more homes to choose from – so now sellers have to compete rather than a couple years ago where buyers had to compete. We are seeing a few properties get multiple offers in Centre Wellington – but certainly not many (ones getting multiples are either unique properties, the 10 out of 10 homes as referenced above or properties where contractors/builders can add value and they are willing to compete for the property).

Bottom line: many sellers will have to lower pricing to get their home sold over the next couple months. Or be prepared to wait. And your realtor better bring their “A” game with great marketing – which means spending their own money online and in print to promote your home, as well as upping their staging game (See page 5).

Great marketing and making your home look the best it can, not endless open houses, will get your home sold. And you need a realtor that will be honest with you. Unless you get lucky, an overpriced home will not sell. And I don’t see a lot of “luck” in this market.

I’m not talking about “giving your home away”; simply pricing it fairly so you get showings – and then offers. And selling it for the best possible price in a somewhat challenging market. In this regard, your realtor needs to be a good negotiator. The days of realtors simply “order taking” is over. Negotiating is back!

Wishing everyone a great summer. If you wish to discuss your real estate needs, feel free to reach out anytime at 519-766-3716.

Until next time, take care.

George