5 Bullet Friday...The Million Dollar Market is Booming

Welcome back Sudbury! 👋

Here are my 5 takeaways this week:



📈Another week has passed with listings once again outpacing sales. After a drop in new listings last week, we surged back into the 70s this week. Sales saw a modest uptick over the last 7 days, but with the increased new listings, total home availability jumped past 300 for the first time this year. Last year, we only surpassed 300 listings six times, mostly in late summer and fall when the market began to pick up (October). This suggests we'll see significantly more homes come onto the market this year compared to last, and I expect this upward trend to continue into the second half of the year.

📊This week, showings have decreased, yet there seems to be a rising trend in multiple offers. We had 31 deals at or above listing price, similar to last week. Anecdotally within our team, we're observing listings with fewer showings, but nearly all showings result in offers. I describe this market to sellers as one where buyers are discerning yet highly qualified and eager to make offers. While we may not see the 60+ showings from a few weeks ago, multiple offers are still common.

🔨As provincial and federal governments bolster the new housing accelerator fund, billions are being poured into housing development. I recently heard that many communities are adjusting to qualify for these funds but are simultaneously raising municipal development fees, effectively offsetting any savings from federal and provincial funding. Sudbury, however, has frozen local development charges, potentially making development cheaper. Yet, this hasn't immediately translated into increased builds, particularly in single-family homes, which are on par with last year's figures.

💰The market has yet to reach the average price levels seen during the COVID surge. However, the Million Dollar+ market segment in Sudbury is more active than ever. So far this year, 36 homes have sold for seven figures or more, up from 23 at this time last year. These homes frequently enter bidding wars, indicating that discerning buyers at all price points are ready to act when they perceive value. 

🤔I've noticed rental rates decreasing in recent months, a trend mirrored in my own properties. Despite the steep increases in rent seen earlier this year, it seems tenants may have reached their affordability limit. Recently, it took me six weeks to secure a tenant for a fully updated 3-bedroom unit in a prime location, even after pricing competitively against comparable units in the area. It appears we're in a phase where many are financially stretched, facing challenges with mortgage renewals, rental affordability, and often needing additional income sources to maintain their lifestyle. This economic stagnation suggests that prices may remain relatively stable in the short to medium term, though these are observations rather than financial advice from your local Sudbury Realtor.



That’s it for this week, let's connect next Friday for another Sudbury Market update!