The sellers market continues with most owners attempting to attract multiple bids and being successful. Many of those sellers who do not attract multiple bids end up having to increase their asking prices, which is not ideal situation. Others set the initial asking price at the market to avoid any price increase should the auction attempt fail.
Even though interest rates are on the rise and the foreign investment property tax has recently been increased by 5 percentage points to 20%, we are still seeing prices edge up.
The average price of a detached 2-storey home was $2.7mm up 34% from March 2021's average. 23 homes sold above $3,000,000 with 10 of those selling above $4,000,000. The highest sale was for a one acre Southeast estate property with riparian rights which sold for $18.2mm. Backing out that sale reduces the average price to $2,584,000 and the year over year price increase to approximately 27%. Still incredible.
The real estate market like the stock market is unpredictable. Rising interest rates will deplete the pool of potential buyers.
We should see more empty nesters that need their home equity to improve their financial situation come to market and take advantage of these exorbitant selling prices.
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