As we look back on the first quarter of the year, there is plenty to reflect on over the last three months. There is no denying the impact that borrowing costs had on the real estate market throughout 2022, and this trend continued as a 0.25% rate increase was announced at the Bank of Canada’s January meeting. This brought the overnight rate to 4.5%, and the prime rate to 6.7%.  Thankfully, no change was made at the March or April meeting as signs of regained control regarding inflation continued to be noted.  An inflation rate of 5.2% (compared to 5.9% in January) was the the largest decline experienced since April 2020. Home prices softened over the course of the year in order to compensate for these borrowing costs, and our average price was reported at $653,611 in March, 20.6% lower than one year ago.  Encouraging, however, is that we ARE seeing signs of increased sales activity, momentum, and price growth since January, and all signs point towards continued stability and growth to anticipate in the season ahead.

Buyers have sensed this acceleration and contributed to an uptick in activity recently.  There was lot of buzz in the market in March, noted by 249 more sales than a month prior, and a shorter sale cycle of 18 days on average (compared to 27 in January!). The average price grew $31,699 compared to just a month prior.  Though it’s early to tell, our indicators suggest that this returning stability and increased activity could mean that the bottom of the market is now behind us.  Confidence continues to increase, and some properties are even receiving multiple offers! Should you have specific questions about the statistics, or how they impact you, please do not hesitate to reach out to discuss your questions.  I’m always available to chat and help you navigate the world of real estate as it relates to you.

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