January Insights: Belleville Real Estate Market Gains Momentum Amidst Growing Demand
January brought with it a continuation of the trends we've been observing, with some interesting developments that you should keep and eye on.
1. Steady Price Increases:
Belleville's market continues to heat up, with two consecutive months of price increases. The median sold price is up to $520,750 in January, a 3% increase from December's $508,900 and a notable surge from November's $465,900. This upward trajectory suggests a growing demand and market strength.
2. Persistent Inventory Challenges:
Inventory remains a challenge, with only 86 active listings and 44 sales recorded in January. This scarcity of available properties is contributing to competition among buyers, particularly in the sub-$500K segment.
3. Consistent Months of Inventory:
Maintaining the momentum from December, the Months of Inventory remained steady at 1.9 months in January. This continued level suggests a market that remains tight, with supply and demand dynamics favouring sellers.
4. Emerging Competitive Dynamics:
The market is becoming increasingly competitive, particularly in the sub-$500K range. Multiple offers are becoming a regular occurrence, reflecting the increased interest among buyers. Additionally, the availability of bungalows suitable for duplex conversion in this price bracket is dwindling, with existing inventory quickly being scooped up and limited replacement listings.
5. Surging Demand for Unique Properties:
In today's higher interest rate market, there is a huge demand among investors for properties suitable for triplex conversion that meeting the unique requirements set forth by the city of Belleville. This heightened interest suggests a growing appetite for bigger scale value-add projects for investors to meet cash-flow goals.
6. Softening Rental Market:
While the sales market thrives, the rental landscape is experiencing a slight softening. According to the most recent CMHC rental report, vacancy rates for purpose-built rentals in the Belleville/Quinte West area have risen to 3.0% from 2.4% the previous year.
Should you have any questions or are considering your next move in the market, don't hesitate to reach out. Here's to a prosperous and exciting year ahead!
Cheers,
George Wang
*Data based on CLAR monthly housing market reports.