As Ontario opens up once again using a 3-step reopening plan to gradually lift Covid Restrictions, many of our lives will approach some form of normality again, however different it may be now vs 2 full years ago.
We are all learning how to live with Covid, families have shifted, business has pivoted and the world is learning the new norm.
The Real Estate market has performed phenomenally well across the globe.
Work from home has seen many families choose a more desirable place to live.
Many people have sold their homes at very strong values to move to more affordable locations, freeing up cash and making life simpler.
Very low inventory, low interest rates and high demand has resulted in a significant increase in values.
This same trend has been mirrored in most markets across north America and beyond.
Analyzing stats and trends, several factors will continue to influence our market.
Interest Rates on the Rise
The Bank of Canada recently held rates only to state that we should expect an interest rate hike at the next announcement March 2nd 2022.
This certainly has Buyers feeling pressure to make a move or potentially see their costs to carry increase next month.
We have to understand that most Buyers have a preapproval or a guaranteed rate for a certain period of time. As this time expires and new rates are applied, carrying costs will increase and affordability will decrease for all Buyers.
It makes sense that this is fueling our market at the moment and adding pressure to the already depleted inventory.
New Home Inventory
Speaking to new home builders in our market there are very few homes available to be purchased.
New releases are done in unit #’s, allowing the builder to adjust pricing to the market more regularly.
Most builders have sold out of inventory and wait times for a new home is in excess of 1-2 years
Servicing and trades have been set behind and closing delays are much more common.
This lack of available new housing has added pressure to our resale market.
More Homes on the Market
Although it seems there are very few homes for sale, our sales volume has actually grown year over year since 2018.
Looking at the Centre Wellington market today.
There are 15 homes for sale.
5 of them range from $589,900-$950,000.
The remaining 10 range from $999,900-$3,690,000.
In 2019 there were 497 sales in Centre Wellington.
In 2020 there were 540.
In 2021 there were 615.
The reality is, we are selling more homes year over year than ever before.
The most interesting stat is our average days on market until a home sells.
In 2020 it took on average 17.25 days for a home to sell in Centre Wellington.
We simply cannot keep them on the market any longer than 1 week.
Selling Strategies Changing
Holding offers, attractive list prices, navigating multiple offers and marketing strategies these days are much different than we have ever seen in the past.
In 2021….it took 7.17 days!
If you are considering making a move, there is no better time to reach out and arrange a discussion.
We have been very successful in providing phenomenal results for our sellers….if you have questions at all, please let us know.
Hope for Buyers
For buyers….hope is not lost.
Now is always the right time to Buy the perfect home.
We must be prepared.
You must know the market.
You must know what it may take to be successful purchasing in a challenging market.
You may also have a home to sell and knowing a true expectation of value may help you being competitive in your purchase.
We can help….please reach out.
A reminder of Valentine’s Day upcoming and best wishes to those that are special in your lives.
All the best!