Brantford Real Estate: Limited Supply Fuels Seller's Market Surge

Welcome to Living in Brantford's Real Estate Insights for May 2023, where we provide you with the latest updates on the Brantford real estate market. In this blog post, we'll delve into the current state of the market, focusing on the heating market conditions and the impact of limited supply on both buyers and sellers. Let's explore the trends and opportunities in Brantford's real estate landscape.

1. Lack of Supply: A Growing Concern The Brantford real estate market is witnessing a surge in demand, but unfortunately, the supply of homes for sale is not keeping up. Low interest rates have motivated homeowners to stay put, resulting in a shortage of available properties. With inventory levels declining, Brantford could soon find itself in another intense seller's market.

2. Market Snapshot In April 2023, a total of 195 homes were sold across Brantford, marking a 29% decrease compared to the previous year. However, there was a 9% increase in sales compared to the previous month. On the supply side, 360 new homes entered the market, showing a 30% year-over-year decrease and a 3.6% decrease from the previous month.

3. Tightening Inventory Levels Inventory levels dipped further in April, with a supply of 2.16 months, down from 2.64 months the previous month. This indicates a tightening inventory and suggests that it would take slightly over two months to sell all the existing properties on the market if no new homes were listed.

4. Extended Time on the Market The average number of days it took to sell a home in Brantford increased from 24 days in March to 29 days in April. Despite the longer time on the market, homes are still selling close to their asking prices.

5. Returning to a Seller's Market With the further decline in inventory levels, Brantford has officially transitioned back into a seller's market. This shift favors sellers as they have more leverage in negotiations.

6. Average Sales Price for Detached Houses In April, the average sales price for a detached house in Brantford was $753,793, representing an 18% decrease compared to the previous year. However, prices remained relatively stable compared to the previous month, with a decrease of less than half a percent.

7. Strong Sales-to-List Price Ratio The sales-to-list price ratio increased from 98.6% to 99.6% in April, indicating that if a house is priced correctly, sellers can expect to receive offers near their asking price.

8. Neighborhood-Specific Market Variations While the overall market shows a leveling off and a return to a more balanced state, it's important to note that market conditions can vary by neighborhood. Consult with a knowledgeable realtor who can provide data specific to your neighborhood to set accurate pricing expectations.

9. Buyer's Perspective: Rising Prices and Increasing Demand Buyers in Brantford are facing rising prices, with a 10% increase in just the last five months. As buyers regain confidence in the market and interest rates remain steady, the demand is expected to peak. Acting sooner rather than later may help buyers secure a home before facing increased competition.

10. Still Opportunities for Buyers Despite the limited supply and heightened demand, not all homes are going into multiple offers. Buyers can still find deals and negotiate repairs during the home inspection process. Don't hesitate to make offers on homes you love, as sellers' motivations may vary.

Conclusion: The Brantford real estate market is heating up, driven by high demand and limited supply. With a tightening inventory and a return to a seller's market, it's crucial for both buyers and sellers to understand the dynamics at play. Here are some key takeaways:

For Sellers:

• The spring market remains favorable for listing homes. Although properties may take slightly longer to sell compared to the previous month, they are still fetching prices close to the asking price.
• Prepare your home for the market and ensure it stands out from the competition. With limited options available to buyers, a well-presented property can attract more interest and potentially lead to multiple offers.
• Home prices have risen approximately 10% since December 2022, indicating a positive trend for sellers. Partnering with a knowledgeable real estate agent can help you navigate the market and set accurate pricing expectations.

For Buyers:

• Acknowledge the rising prices in the Brantford market, with a 10% increase over the past five months. Acting sooner rather than later can help you avoid further price escalations.
• Consult with a mortgage broker to secure favorable interest rates and consider taking advantage of any rate float-down options in the future.
• Despite the limited supply, not all homes are facing multiple offers. Negotiations can still take place during the home inspection process. Stay informed and work closely with a trusted real estate agent to identify potential opportunities.

Looking ahead:

• It's uncertain whether interest rates will be lowered before the projected 2024 timeline. Recent decreases in inflation suggest that the Bank of Canada may consider adjusting rates to meet their goals.
• The overall real estate market in Brantford is showing signs of stability, with prices leveling off and inventory tightening. However, these trends can vary significantly depending on the specific neighborhood. Partnering with a knowledgeable real estate agent who can provide detailed information about your target area is essential.

In conclusion, the Brantford real estate market is experiencing increased activity and a return to a seller's market due to limited supply. Sellers can take advantage of the current conditions, while buyers need to act promptly and strategically to secure their desired properties. Partnering with a knowledgeable real estate agent and staying informed about neighborhood-specific trends will be crucial for both buyers and sellers in navigating this dynamic market.