Hello December! With the announcement of yet another Bank of Canada interest rate hold today, falling bond yields, and many predictions of rate cuts starting Q1/Q2 2024, the Belleville market has been through some interesting changes seen in the November stats:
1. Positive Trend in Sales and Inventory:
In November, we witnessed a noteworthy uptick in sales, with 41 transactions—a marked improvement from the 33 sales recorded in October. Simultaneously, the inventory landscape is undergoing a shift, with active listings dropping dramatically from 229 in October to 164 in November.
2. Months of Inventory and Days on Market (DOM):
Mirroring the trend of sales and inventory, the Months of Inventory metric decreased from 6.9 months in October to 4.0 months in November. This decline suggests a shift to a more balanced market. The average Days on Market remains relatively steady at 37 in November compared to 33 in October.
3. Median Sold Price Adjustments:
November median old prices saw a 6.8% decline, settling at $465,900 compared to October's $499,900, continuing the trend of the steady decline in prices since August.
4. Is This the Bottom of the Market?
The question lingering in the minds of market observers is whether this could be the bottom. While it's premature to provide a definitive answer, the observed trends and increased market activity hint at a potential turning point.
5. Investment Opportunities:
For investors seeking opportunities, the landscape remains dynamic. Bungalows suitable for duplex conversion are available in premium neighborhoods in the mid to high $400s. Simultaneously, similar opportunities in C-class neighbourhoods are presenting themselves in the low to mid $300s. Importantly, the rental income difference is marginal—approximately a 10% reduction compared to premium areas—making these properties attractive options for cash flow-focused investors.
In conclusion, Belleville's real estate market is experiencing a period of transition. Increasing sales, decreasing inventory, and yet another Bank of Canada rate hold announcement with many economists predicting rate cuts starting Q1/Q2 2024, this might just be the perfect market to pick up some great deals.