Housing prices fall in Simcoe County as interest rates increase
The average sale price of a home in Simcoe County dropped more than five per cent from June to July this year, yet sales have also fallen by 15 per cent.
"Yes, they've gone down. In February, the average price was just over a million dollars, and now, it's just over 825,000. But two years ago, it was 600,000, 400,000," said Luc Woolsey, president of the Barrie and District Association of Realtors.
"I don't believe that we're having a housing crisis. We're having an affordability crisis right now because we've had 36 rate hikes in a very short time in just 2022," said realtor Peggy Hill.
Housing prices have dropped by as much as 30 per cent in some areas in recent months, but that only brings consumers back to the prices they saw in 2021, which had double the amount of sales when comparing July of each year.
"I think a lot of buyers are waiting on the sideline to see where the bottom of those prices is going to be. And I do think we've pretty much reached that level now," said Woolsey.
"We were seeing a very sharp decline in prices from February until about June. In July, it still declined slightly, but that curve levelled out, and that price point is kind of where we are now."
Hill says she hasn't seen a July like the one that just passed since 2017.
"It's quiet. It's not dead. Sales are happening every day; however, we just have to reset expectations. It's not February. We have to expect longer days on the market and less showings," said Hill.
Increasing interest rates have virtually washed out any decrease in the asking price.
"Interest rates are going to continue to climb a little bit over the next few months. They have another interest rate announcement scheduled for September, where we expect the rate to be higher," said Hill.
"Something's got to give. The consumer can not be paying interest rates at this price and having housing prices be inflated the way they are."
It's not just the communities closest to the Greater Toronto area taking the financial and real estate hit. All of Simcoe County is feeling the effects.
"We've been equally affected. Toronto's been affected. We've all been affected the same way. If we do see a more rapid decrease in Simcoe County, it's because we had a more rapid increase," said Hill.
Woolsey believes too many first-time buyers get caught up in the idea of the "American or Canadian dream," finding the perfect house instead of just securing an asset they can afford.
"If you can buy something, anything, even if it's not perfect, you buy it, and prices will be going up. They always have gone up in this area, and you'll be able to flip that into a home that's more suitable for you a little later on," advised Woolsey.
The Barrie and District Association of Realtors says if you're waiting but can afford something now, you should buy it because it's not going to get more affordable.
CTVNews.ca Top Stories
Several flight attendants from Pakistan have gone missing after landing in Canada
Multiple flight attendants from Pakistan International Airlines have abandoned their jobs and are believed to have sought asylum in Canada in the past year and a half, a spokesperson for the government-owned airline says.
BREAKING Ottawa public school board, 3 Toronto-area school boards launch lawsuit against social media giants
The Ottawa-Carleton District School Board and three school boards in the Toronto-area have launched legal action against social media giants, accusing them of "disrupting students' fundamental right to education."
Rainfall warnings of up to 90 mm among weather alerts in effect for 7 provinces
Rainfall warnings of up to 90 millimetres, air quality advisories and other alerts have been issued for seven Canadian provinces, according to the latest forecasts.
Tipping is off the table at this Toronto restaurant
A Toronto restaurant introduced a surprising new rule that reduced the cost of a meal and raised the salaries of staff.
A Nigerian woman reviewed some tomato puree online. Now she faces jail
A Nigerian woman who wrote an online review of a can of tomato puree is facing imprisonment after its manufacturer accused her of making a “malicious allegation” that damaged its business.
Donald Trump assails judge and his daughter after gag order in N.Y. hush-money criminal case
Donald Trump lashed out Wednesday at the New York judge who put him under a gag order that bars him from commenting publicly about witnesses, prosecutors, court staff and jurors in his upcoming hush-money criminal trial.
A fight to protect the dignity of Michelangelo's David raises questions about freedom of expression
Michelangelo's David has been a towering figure in Italian culture since its completion in 1504. But in the current era of the quick buck, curators worry the marble statue's religious and political significance is being diminished.
Doctors visiting a Gaza hospital are stunned by the war's toll on Palestinian children
An international team of doctors visiting a hospital in central Gaza was prepared for the worst. But the gruesome impact Israel’s war against Hamas is having on Palestinian children still left them stunned.
China's latest EV is a 'connected' car from smart phone and electronics maker Xiaomi
Xiaomi, a well-known maker of smart consumer electronics in China, is joining the country's booming but crowded market for electric cars.