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Summer real estate outlook · Kvetch & Release

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  Windsor Essex home sales have dropped for a fourth straight month, according to the
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  Windsor Essex County Association of Realtors. As we approached the summer season, thought
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  it was time for us to have a conversation but what to expect in this
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  real estate market. It's the fourth of July. Things are heating up.
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  Joining me right now to discuss is Dan Jemis of the Dan Jemis Real Estate
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  Team, who you can hear here on AM eight hundred ckl W every Saturday
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  and Sunday noon to one Dan. How you doing great, John, Great
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  to be with you, Thanks for joining us. So what's going on right
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  now when it comes to our local real estate market. Well, we're definitely
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  feeling a shift over the last few months. It's, in fact the shift
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  that we thought we would feel a little sooner. And obviously the price is
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  the interest rates had gone up over the last couple of well more than a
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  couple of months, a few months, six months, a year, and
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  we were waiting for that increasing interest to take a sect in the marketplace,
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  and it finally has happened, and now buyers are watching carefully as the rates
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  start coming back down again. Obviously, June saw the first decrease of you
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  know, a quarter point for quite a period of time, and some buyers
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  have you know, have gotten back into the market again. But we're starting
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  to see more listings now jumping into the marketplace, which is great news for
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  buyers, but sellers now have to readjust their expectations, which John, if
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  you recall back when we first you know, started seeing prices increase drastically just
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  pre COVID about twenty nineteen, it took a while for homeowners and for buyers
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  to adjust to the quickly increasing prices and the offers that you know, multiple
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  offers that ended up being thirty forty fifty one hundred thousand dollars over asking.
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  Well, now that same effect is coming back the opposite direction, where it's
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  taking some time for the buyers and sellers to readjust to the newer market now,
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  you know. And so I think over the next few months, as
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  those adjustments are made, we'll start seeing the market picked back up again.
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  It's not died completely, it's definitely quite a down a little bit. We're
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  now we're not back into a bit of an even evener market, which is
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  great news. Is the market always this elastic. It just it seems like
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  things are just flipping back and forth. Yeah, no doubt. It's definitely
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  a bit of whiplash happening right now. And again, I've had this for,
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  you know, fifteen years now, and we've got folks in our team
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  that I've had this for twenty five years and they haven't seen what we've seen.
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  So it's been definitely a drastic move in both directions. And again it's
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  just taking time to you know, for the psyche of the buyer and the
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  seller to kind of keep along with with with the market, with with what's
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  happening. Are we still looking at an influx of people coming and buying new
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  homes to know who is buying at this point? Yeah, so right now
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  we're seeing it's a bit of a mixed bag right now, John, And
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  we're seeing some new folks, some first time buyers getting into the market.
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  They've been watching carefully and a lot of those buyers have been frustrated with,
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  you know, not being able to get into the market over the last few
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  years, right having to write offer after offer and losing those offers. So
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  they're finding out able to shop around and have a day or two to think
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  about what they're seeing as opposed to having a jump on something within an hour
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  of seeing the property. So there's some benefits there for the buyers. Now,
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  I know some people are waiting to see, you know, what the
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  interest rates will do. And quite frankly, you know, the advice we've
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  been giving on our show and what we've been seeing happening you know, province
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  and nationwide, is as the rates continue to come down over the next few
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  months and the next year, the prices are going to start climbing back up
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  again. And so our prices ironically have not come down. They're hovering here
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  and when jurassics in the you know, five hundred and seventy thousand dollars range
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  and it's been sitting there and that it would last you know, four or
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  five months, and so they've actually come up a little bit, and so
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  we're not seeing the prices come down. Although if I had to guess,
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  if I had to take up my my my magic ball, I think we're
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  going to see that the prices come down a little tad bit. But as
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  the interest rates come down further, we're going to start to seeing them come
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  back up again. So from a buyer's standpoint, you're almost better off jumping
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  into the market now when the prices are a little bit lower and your interest
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  rates have started coming down as opposed to waiting for the rates to come down
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  another you know, half a point or three quarters of a point when the
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  when the price of the house goes back up again. So it'll be you
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  know, I think, a bit of a wash once all of a said
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  and done, But it'll be more difficult to find a house in that market
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  in six twelve months now, once the rates are down lower than it is
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  now out And we've talked about this before, but again, I just I'd
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  love to get your perspective on it. When we're talking about, you know,
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  the average home price right now, let's say it is around that five
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  to seventy that you were talking about. It's come down a buy and channel
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  that it was hovering around what's six fifty or something for a bit of last
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  year. Is this sort of now the new average that we can expect prices
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  to be like around the five hundred and fifty thousand dollars by by the time.
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  So we had estimated to economists, not we use ourselves, but some
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  economists had estimated that our average price to wind Durassics would go up seven point
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  five percent this year, and we're right on track for that number, so
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  I think that's where we're going to end up. I think we'll end somewhere
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  between five fifty and six hundred thousand dollars in the next six months. So
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  honestly, I know many people were hoping that they would come down more as
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  the market is slowed, but between the influx of folks coming into the marketplace
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  because wind Jorassics has so many great things happening for it, that at the
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  end of the day, the prices are holding steady. So rental prices are
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  still climbing, which is a bit disheartening. I know folks want want prices
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  to come down, but if the demand is there, it's just difficult,
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  right. So I think over the next couple of months we will see prices
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  come down a little tad bit, and buy a tad bit, I mean
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  a couple thousand dollars on the average price point. Really it won't make much
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  of a difference from those looking to buy or sell, and the average price
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  really makes a difference on the type of home that you're looking for. If
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  you're looking for a raised ranch, for example, the average price is sitting
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  at about six hundred and thirty six thousand dollars for a raised ranch, or
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  a ranch is six forty two. So it really depends on those type of
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  home. But we'd like to watch the big number, which encompasses all sales,
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  all residential sales. It's just an easier way to gauge what the market
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  is doing as a whole. Last question. I saw a social media post
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  of someone who lives on Victoria Avenue downtown Windsor, and they said, look
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  across the street from my house here, and there were three construction vehicles,
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  like two pickup trucks in a panel van kind of thing. Yeah, And
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  guy said, look these three guys, they're working on the bridge. They
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  couldn't get hotel rooms anywhere, so they've been renting out this house as an
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  airbnb. They've been here for you know, a month or so. They're
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  great. How much is that type of situation impacting, you know, the
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  rental market, I mean just the market as a whole. So we've been
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  watching that closely, John, in fact, and I was just we just
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  had a meeting with a property management firm that is dealing with a lot of
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  those those units being rented to those that are working on the bridge and the
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  battery plant, and what they're seeing, the trend they're seeing from their end
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  is that it's mostly folks coming in and renting for a very short period.
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  So you have a lot of landlords that aren't crazy about renting for you know,
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  two or three or six months. They want a longer, longer period
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  from a tenant, and so some people are having a difficult time, so
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  they are going after the airbnbs in those short term units for that purpose.
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  So those numbers are definitely there, they're definitely coming in and mostly from the
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  battery plant more so than the breach is what we're seeing in the marketplace.
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  Okay, well, hey Dan, thanks for breaking that all down for us.
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  I'm sure we will talk again soon sometime. You got to have a
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  great afternoon. Thank you so much. Dan Jemmys of the Dan Jemis Real
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  Estate team. You can hear Dan every Saturday and Sunday noon to one on
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  the Dan Jemis Real Estate Show right here on AM eight hundred CLW