2022 at a Glance…..What Happened to real estate??!!
Here is a breakdown of where people purchased in the Niagara region.
Real Estate is always a good investment, but how good?
So, how many homes actually sold over $1M? Here is a breakdown by price point.
Supply and demand….we have a lot of demand and historically low supply. One of the biggest reasons for huge price appreciation.
Statistics have their place, but they are only a guideline for measuring information. Remember – Real Estate is LOCAL (sometimes down to the neighbourhood). Quick stats are in the video, full report is below the video.
The housing market definitely was a roller coaster ride, not for the faint of heart in 2022. From an extreme increase in pricing at the beginning of the year partnered with low interest rates, records were broken everywhere and multiple offer situations were the norm.
Then came inflation…and the inflation buster….higher interest rates.
This was a shock to the system and sales plummeted. Buyers panicked and sellers closed their eyes.
In the short term, increased mortgage rates will keep sales at a slower pace, but Canada's housing deficiency and Niagara's quality of life should see things improve. We are already feeling a change in the air as buyers are starting to attend open houses again and news about a drop in long term rates is giving a bit of optimism to those looking to enter the market
In the short term, there is still expected to be a slighter slower market, but bear in mind that we are entering a more normal market and the past couple of years have seen historic sales. Compared with longer term statistics, the market is still relatively robust, although buyers currently have an edge instead of the overwhelming sellers market we witnessed in 2021 and the beginning of 2022.
While interest rates have increased, there is some good news for buyers: Lower prices are seeing a decrease in deposits, decrease in land transfer tax, and the most important part – a decrease in principal on renewal. The higher interest rates should moderate by the end of the year, so buyers should consider variable rates or only locking in for one year. Bearing in mind, we did not expect that interest rates would rise this much, and if they do start to decrease, they will most likely never again see the 2-3% rates that we enjoyed for so long.
Many sellers have not yet adjusted to the lower prices, so prices are all over the map and prudent buyers will be paying attention to not just an asking price – but to overall value. Sellers need to price in accordance with what is currently SOLD, not just what sold several months ago and not just what someone else is asking. Sellers also must recognize that times have changed and it could take significantly longer to sell than it has for the past few years.
The trade marks displayed on this site, including CREA®, MLS®, Multiple Listing Service®, and the associated logos and design marks are owned by the Canadian Real Estate Association. REALTOR® is a trade mark of REALTOR® Canada Inc., a corporation owned by Canadian Real Estate Association and the National Association of REALTORS®. Other trade marks may be owned by real estate boards and other third parties. Nothing contained on this site gives any user the right or license to use any trade mark displayed on this site without the express permission of the owner.
powered by WEBKITS