Forecasts for the 2022 real estate market have made it quite apparent that the housing market will likely continue to increase by double digits into the end of the year. There are a few factors that are continuing to push the market in this direction, making it a good time to sell your home!
what is driving the current market?
In our opinion, there are three main factors driving this market. Firstly, the national housing shortage, which includes the lack of resale homes available, along with the lack of new developments. Secondly, high demand meaning the number of buyers wanting to purchase. Lastly, the effects of the pandemic. These factors are all intertwined and go hand in hand.
Housing shortages have been an ongoing factor way before the pandemic, but it certainly has added to the issue. Supply chain problems related to building supplies, increased cost and confidence in future market needs, has hindered new developments.
“Everywhere, in our largest urban centres, and in the nation’s small and medium-sized towns and cities, new homes are not being built fast enough to satisfy growing demand,” said Soper. (CEO Royal LePage)
buyer demand is high
Interest rates have been historically low. As a result, this in turn has kept the demand high. We are also seeing parents helping their children with down payments. Investors are using equity to purchase additional properties.
There are talks that interest rates will increase within the first half of the year. This may slow the market slightly, but may only affect a small group of first-time home buyers. It may also create a frenzy in the short term because buyers want to beat the rate hike.
Effects of the pandemic
The pandemic has created a variety of different reactions in reference to buyers and sellers. In the beginning of 2020, when most things came to a halt, so did real estate. Sellers were not putting their homes up for sale because of fear of the unknown.
When some restrictions were lifted there was still a hesitancy for sellers to list their homes, but buyers were ready to go. Hopefully, as we continue into 2022, sellers will be more comfortable with putting their homes on the market and we see an increase in supply.
features buyers are looking for
Working from home has changed what type of home a buyer is interested in. Because commuting is no longer a factor for many, relocating to outer-urban and rural areas has become more desirable and affordable. For instance, additional office space, in-law suites and outdoor space to enjoy privately, are just some items buyers are now looking for in their new home.
current market statistics
The Realtors of Hamilton-Burlington just released their monthly statistics showing that the average sale price has increased 13.6% from December 2021 to January 2022 and shows a 34.7% increase, year over year, January 2021 to 2022.
Because of this unprecedented market, it’s a great time for homeowners to take advantage of selling their home for top dollar. If you are considering downsizing, retirement living, renting or relocating near or far, now is a good time to sell.
We certainly do not have a crystal ball and can’t predict the future, but can only reflect on our current market…..and it is Hot, Hot, Hot!
we can help!
If you are considering making changes to your living arrangements, now is a good time to sell. The Ladies of Royal LePage can help by providing you with a Market Evaluation, marketing strategy and timeline to make the process smooth and successful! We can offer advice on preparing your home and have a network of people that can help with each step. If you are thinking of getting started on this journey, please contact us.
The Ladies of Royal LePage
Kathy Della-Nebbia, Diana Gallacher, Margaret Reid & Lisa Robitaille
Sales Representative, Royal LePage State Realty