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
NEW Keeping these exotic pets is 'cruel' and 'dangerous,' Canadian animal advocates say
Canadian pet owners are finding companionship beyond dogs and cats. Tigers, alligators, scorpions and tarantulas are among some of the exotic pets they are keeping in private homes, which pose risks to public safety and animal welfare, advocates say.
NEW Life got in the way of one woman's reunion with her father, but a DNA test gained her a family
Anne Marie Cavner was the closest she'd ever been to meeting her biological father, but then life dealt her a blow. From an unexpected loss to a host of new relationships, a DNA test changed her life, and she doesn't regret a thing.
Doctors ask Liberal government to reconsider capital gains tax change
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Quebec farmers have been protesting since December. Is anyone listening?
Upset about high interest rates, growing paperwork and heavy regulatory burdens, protesting farmers have become a familiar sight across Quebec since December.
'Catch-and-kill' strategy to be a focus as testimony resumes in Trump hush money case
A veteran tabloid publisher was expected to return to the witness stand Tuesday in Donald Trump's historic hush money trial.
Quebec Health Department reports 28 cases of eye damage linked to solar eclipse
Quebec's Health Department says it has received 28 reports of eye damage related to the April 8 total solar eclipse that passed over southern parts of the province.
Psychologist becomes first person in Peru to die by euthanasia after fighting in court for years
A Peruvian psychologist who suffered from an incurable disease that weakened her muscles and had her confined to her bed for several years, died by euthanasia, her lawyer said Monday, becoming the first person in the country to obtain the right to die with medical assistance.
Diver pinned under water by an alligator figured he had choice. Lose his arm or lose his life
An alligator attacked a diver on April 15 as he surfaced from his dive, nearly out of air. His tank emptied with the gator's jaws crushing the arm he put up in defence.