The Brantford housing market has been considered a desirable place to live in Ontario, due to its proximity to the Greater Toronto Area and Niagara Falls, and its comparatively lower housing prices. But do current market conditions support this trend in the future?
Home to just over 100,000 people, Brantford, Ontario is situated on the Grand River in Southwestern Ontario, making it an appealing home-buying destination for those who wish to live near big-city amenities but are keen on the natural backdrop of the country. These factors, in addition to others, have made Brantford a sought-after city to buy real estate, and the consistently high demand has led to price increases in this Ontario community. Here are some of the record-breaking figures surfacing in the Brantford housing market, and what we can expect to see as the year progresses:
Record Sales in Brantford Real Estate
Not only is Brantford experiencing a surge in housing demand, but the local real estate market is shooting ahead at such a pace that new records are being set month after month. By the end of June 2021, the Multiple Listing Service (MLS) System of the Brantford Regional Real Estate Association totalled 309 units sold; an 11.6-per-cent increase from June 2020, and a new record for the month. Home sales were also 14.1 per cent above the five-year monthly average, indicating that the high sales volume is nowhere near normal for this region.
Ray Petro, President of the Brantford Regional Real Estate Association, notes that the unusually high sales volume experienced in June has been a staple for the entirety of 2021. “Sales have continued unabated at their breakneck pace since earlier this year, with activity reaching not only the highest June level but also the first June to ever surpass 300 sales.” High sales volume has been met by moderate new listings on the market, but not enough to keep the prices low. The MLS Home Price Index (HPI) median price at the end of June 2021 was $632,800 – a 40.2-per-cent year-over-year increase.
While June posted strong numbers, the month of July followed suit with another increase in average price. The average value of a detached home sold during the month of July in Brantford was an astonishing $777,026 – a 4.6-per-cent increase over that of the same metric in June.
Petro states that new listings have not helped overall inventory levels, but new monthly listings have helped maintain interest in the market. “Our housing market has benefited from a strong and sustained resurgence in new listings that began last summer. While overall inventories remain at record lows, the large influx of new supply has provided a healthy boost of offerings on the market. Based on the dearth of available listings at the end of each month since the beginning of the year, it seems like homebuyers are making short work of almost anything that makes its way onto the market.”
At the end of June 2021, active residential listings on the Brantford real estate market were down to 203 units – the lowest June value in more than three decades. Compared to the five-year average, active residential listings at the end of June were 47.9 per cent less, and compared to the 10-year average this value was down 60.4 per cent. July fared slightly better with 212 units of inventory at the end of the month. Should this trend continue, inventory should be able to build up over the next few months to give a strong start to 2021, while simultaneously helping the rising prices level off. This would hopefully shift the market into more neutral territory.
Looking Ahead for Brantford
As the year rolls on, the Brantford housing market may experience a continued surge of homebuyers from other parts of the province. Even as many companies pivot back to in-person operations, the buying trends within Brantford aren’t expected to shift dramatically. With a convenient location so close to the epicentre of Toronto, homebuyers from Toronto may continue relocating outside of the GTA in search of affordable living opportunities and more greenspace. This would position cities like Brantford comfortably in a moderately hot real estate market until at least next year.
Original Source Credit: RE/MAX Canada Online Blog