The president of the Huron Perth Association of Realtors says rising interest rates are affecting affordability, as home sales trend below average levels for this time of year.
Julie Heitbohmer said August home sales in Huron Perth plunged 31.5% compared to a year ago.
“Given the very healthy clip at which new supply is entering the market, it seems like sellers are willing to list their homes but haven’t adjusted their pricing expectations to match what buyers are willing or can afford to pay," she said. "With at least one more interest rate increase slated for the remainder of the year there may be a longer adjustment period ahead as the housing market gradually absorbs the impact of higher rates.”
The year-to-date average price was $693,463, increasing by 19.1% from the first eight months of 2021. The dollar value of all home sales in August 2022 was $101.2 million, a sharp decrease of 32.5% from the same month in 2021.
The number of new listings was up by 8.8% from August 2021. There were 273 new residential listings in August 2022. This was the largest number of new listings added in the month of August in more than five years. New listings were 11% above the five-year average and 12.4% above the 10-year average for the month of August.
Active residential listings numbered 484 units on the market at the end of August, more than double the levels from a year earlier, jumping 146.9% from the end of August 2021. Active listings haven’t been this high in the month of August in five years.