Real Estate in Northumberland and Peterborough
Peterborough Real Estate Market Report - May 2022
Last update: June 20, 2022
The real estate market in the Peterborough region for May showed continued increases in listing inventory, combined with a mild increase in sales volume and price from April levels.
Take a look at the following chart, which shows detached home prices for the entire Peterborough district:
Since reaching an all-time high in February, prices had dropped in March and April before recovering somewhat in May.
Prices had been rising since autumn before this recent setback, which is largely attributable to increased mortgage rates combined with more listing inventory.
The following chart shows sale prices for all residential property types:
Sales volume for the Peterborough region has been lower, but stable, after reaching a peak in March. The decrease in volume has been countered with an increase in new listings, helping prices to avoid heading higher.
Another common benchmark is called SPLP or Selling Price to List Price. It measures the sale price of a property in relation to its listed price.
As you can see in the following chart, properties have gone from selling at about 12.5% above list price at this time last year to about 6% above list price in May, with the rate also easing along with prices from February.
This is largely due to a shift in pricing strategy on many listings. When inventory was scarce, many homes were listed at a price lower than expectations, with offers held until a set date and multiple offers in most situations. Now, with more listings to choose from, buyers are able to choose which listings they offer on, and bidding wars are less common. More listings are seeing this pricing strategy unsuccessful, and are cancelling the listing after not getting the price they wanted, then re-listing with a higher price and negotiating to a sale price more in-line with the revised list price. Hence, we are seeing the sale price to list price ratio much closer to being at par, or 100%.
The Peterborough market had been in a strong seller's market for some time, indicating that market conditions heavily favour sellers over buyers.
The following chart shows months of inventory (MOI), which is the amount of time it would take for listings to sell out if no new listings were added.
A seller's market is when MOI is below 5. A balanced market is between 5 and 7, and a buyer's market is over 7 MOI.
The highest point in the past year was in May through July when this figure was about 1.0 for the region. It hit a new low in December - close to the 0.2 mark. It is has now jumped to a new high at about 1.7 - clearly not as difficult for buyers as it was at the end of 2021.
The following chart shows active listings (how many homes are for sale) in the Peterborough region.
The number of active listings reached a low point for the past year in December. They have jumped since then to a new high for the past year (now about 330) - in August of 2015 they were 1028 - in 2011 they were 1258.
If you are considering selling your property, now is still a good time, though not nearly as good as this past winter.
Should you be looking to buy, it can be still be competitive. Multiple offer situations are common at in-demand price ranges, so it pays to be well prepared. Speak with your lender to get a pre-approval, and work with an experienced Realtor to research listings and review recent sales of similar properties.
If you are interested in information on a specific area, please reach out to me anytime!
John Owen, Broker
RE/MAX Impact Realty, Brokerage
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