Jalaj’s market update for July 2023


Over the last 16 months, rising interest rates have impacted affordability not only in Milton, but everywhere, in turn bringing the home prices down. They have declined roughly 10% year-to-date, and 15% from when the first interest rate increase was announced in 2022. As the interest rates increase, fewer buyers get qualified for a mortgage, and ones that do get qualified, are for lesser amounts, which directly affects the home prices. With another potential interest rate increase in September, the prices most likely will remain where they are for the rest of this year. With affordability being out of reach for people, there have been fewer sales compared to 2022, down by 22% year-to-date. At the same time, not many listings have come onto the market, down roughly 36% year-to-date compared to 2022. This to a degree is due to most sellers not wanting to sell at current prices unless they absolutely must. In the current market, yes you will get comparatively less for your home from the highs seen in 2022, but at the same time, you will also pay less for the home you buy. If you are a first-time buyer, have been pre-approved and have the downpayment, then I would not advise you to wait for the interest rates to come down, because as they come down, more buyers will enter the market, which will in turn deplete the supply and increase the home prices.