Moderating trend is underway

The sleepy community east of Ottawa once again show signs of leveling housing prices. Spring is the time when homeowners, who want to sell, make their move. This year is not an exception. Listings of detached homes have increased from around 70 in March and April to 107 in June. The number of townhouses for sale is more than twice larger compare to this April.

Increased listing activity does not however translate into higher home prices. The average asking price is dropping slightly from the pick in April. Another sign of cooling market is the fact that 36 single family homes have been on the market for more than two months now; 8 more have been sitting already 3 months with no takers. Sellers have a tendency to overprice their homes. Only after they see no traffic from buyers, they may consider lowering the asking price. Some do it quickly and by as much as $25,000, others prefer the “wait and see” approach. If such trend continues throughout the summer I can see housing prices being even lower later in the year.