Milton Real Estate Market Update

Milton Real Estate Market Update: What’s happening in the market is the question that I get asked every day. The answer this month may just surprise you.

The May 2020 stats are in and while we are in the middle of the pandemic, things are starting to open up. Because of that, the real estate industry is starting to pick-up as well. New listings priced well are moving very quickly and in some cases receive multiple offers.

In May; there are 131 sales across all home types. This represents a 51% decrease compared to May 2019. Year to date, sales were down about 20% in Milton. There were 711 homes sold compared to last year’s 968.

The average home price across all home types is up about 7.69% year to date over 2019. That increase is largely because the market has a strong first quarter. The average price at one point was almost $840,000. It is clearly visible that we were in a white hot real estate market at the beginning of this year.

Price in May 2019 to May 2020 was roughly almost the same. It only has an increase on an average of a half percent.

May 2020 Real Estate Statistics

• Average Days on market – 20 days
• Average list price to sale price ratio – 99%
• Detached homes and condo apartments – sitting at around 98% pricing SP/LP

Having representation from a great local real estate agent who really understands the local market is critical in ensuring that you get the best value for your money.  Reach out to me if you have any questions!

Buyers and sellers have been asking whether the prices are going to drop. There were a few scary news headlines circulating online about CMHC predicting up to 18% price in the future.

CMHC announced that they will be increasing the minimum credit to 680 and changing the ratios in which people qualify for the TDS/GDS ratio and how. The result of these changes works out to be about an 11% decrease in purchasing power.

In order for you to have a better understanding of these changes, (you can view this video: start at 3:30-5:36), click here. This will help you understand how the Mortgage App works. 

Based on the figures, after CMHC changes the way they qualify, there’s an 11.54% decline in purchasing power. However, there are a couple of major players like Genworth and Canada Guaranty who will not be following suit with CMHC so there are still options. 

Since the other mortgage insurers announced that they are not following suit, I do not foresee the impact of the CMHC changes that are to go into effect July 1 having that big of an impact.

Our local real estate market update stats tell us that the chances of having June as a busy month is quite high. It may not be as busy as 2019 but we are on an upward trajectory now. 

A strong point to remember: interest rates remain low and inventory is very low so the buyers are coming out. This is just a perfect mix of strong prices going forward.

If you are looking for a home’s value and if you’re curious about what my formula is in helping folks win in real estate, you can reach out to me directly, click here.

I will be happy to do a virtual consultation and answer any questions that you have.