Market Snapshot – February 2023
Mar. 07, 23 | Market Updates
Weakening housing trends remain the central theme early in 2023 across Canada.
There was a decrease to all residential home sales in the City of Cambridge in February compared to the previous month, prices dropped nearly 4% overall. However, from all properties sales, those most affected were condos, and single family detached homes saw a increase, be it very minor, an increase is an increase. Single family detached homes, went up 1.7% ($840,182), from January when the price was roughly $14,000 less.
The interesting stat to observe month over month is the number of new listings which went from 141 in Jan to 169 in Feb (+20%), and number of sales, which were 73 in Jan to 111 in Feb (+52%). This indicates that we are beginning to see some signs of a spring market as these statistics reflect the traditional ebbs and flows to a real estate yearly market lifecycle.
In 2022 in January to February there were 140 new listings and 97 sales, but in February there were 243 (+73%) new listings and 185(+90%) sales. In other words in Feb 2023, for every 2.5 new listings, there is 1 sale, and in the previous year, for every 1.3 new listings, there was one sale.
The most recent inflation data suggests the country is inching closer to normal price growth. Canada’s annual inflation rate slowed to 5.9 per cent in January, down from the peak of 8.1 per cent reached in the summer. With inflation slowing but labour markets proving resilient, hopes for a soft landing are growing in nationally in Canada. There have been moments since the January rate decision at which the Bank of Canada’s pledge to pause rate hikes looked premature. Two weeks after the announcement, Statistics Canada published a blockbuster jobs report showing that the labour market added 150,000 positions in January, 10 times Bay Street’s consensus estimate, while the unemployment rate held steady at 5 per cent. With the Bank of Canada’s announcement coming up tomorrow many economic leaders are anticipating the BoC to press pause, atleast for now.
If you want to discuss what’s happening in the market, or maybe the process of buying or selling, I am always ready to have that conversation. All you have to do, is reach out by filling out the form below and we can chat more over coffee. And be sure to follow me on Facebook or Instagram for all the behind the scene and up to the minute news.
