The curtain has fallen on the real estate year of 2021. Looking back, it was a year of: offer dates, 24-72 hour irrevocable dates, bully or pre-emptive offers, multiple offers, selling over asking, etc. Yes, it was quite the year with continuing trends that began in the spring of 2020 just after the COVID 19 pandemic took hold. With the recent emergence of the Omicron variant, the pandemic continues to rage on. Will the real estate market continue to rage on too? Based on looking at some data and consulting some real estate resources it seems the market will continue to roll on nicely into 2022.
According to the recently released Royal LePage Market Survey Forecast the aggregate price of a home in Canada is set to rise about 10.5 per cent to $859,700 in 2022.
The homes that are selling are in general selling for over the list / asking price.
As of Dec. 31, 2021, homes in Huntsville are selling about four per cent over the list / asking price whereas back in 2011 homes were selling about five per cent below the list / asking price.
At the present time the market is in favour of sellers. The basic law of supply and demand is dictating some market trends at this time. Home supply is at its lowest point on recent record. In Huntsville, months of inventory as of Dec. 31, 2021 was 1.4 months. The months of inventory has gradually slipped each year from a high of 9.4 months in 2011.
Not only is the inventory of homes for sale historically low, the homes that are listed for sale are selling faster. In Huntsville, median days on the market as of Dec. 31, 2021 was 12 days. Once again this number has gradually reduced each year from a high of 56.5 days in 2011.
Other factors that will likely contribute to a sellers’ market in 2022:
Demand from buyers who were unable to finalize a purchase in 2020 or 2021.
Growing need for homes from newly formed households and newcomers coming to the area.
The current rise of the Omicron variant may contribute once again to more people working from their home bringing into focus the importance of a home as a place to both live and work. Buyers may realize they need to make a change in their housing requirements to accommodate these additional needs.
Typical travel and entertainment tendencies may be held off again and buyers will continue to conserve more cash to possibly contribute to the purchase of a new home or even a recreational property.
Paradoxically the threat of rising interest rates may push buyers into making a home purchase now. It is felt that mortgage rates are likely going to increase at some point in 2022. The onset of higher interest rates, coupled with some unknown factor/event that crops up in 2022, may begin to slow the market down from the lofty heights where the market currently exists.
Notes:
Statistics can be broken down into a multitude of property types and geographic locations. Numbers are quoted for Huntsville Residential Market Activity for properties located both on and off the water.
Sources reviewed to help with the formulation of this article:
CREA Stats: December Residential Market Activity and MLS® HPI Reports prepared for the Lakelands Association of Realtors
Royal LePage’s 2022 Market Survey Forecast
Brian Buffini’s Real Estate Report (Canadian Edition 1st Biannual 2022)
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An enduring partnership you can trust with your real estate needs
Many REALTORS® focus all their energy on building a hefty client list. While that is good for their bottom line, it doesn’t allow them to craft lasting relationships with clients. Why? Because they are often too busy running here and there trying to offer exceptional and personalized buying and selling experiences to every potential buyer or seller they meet.
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Combined with their experience in real estate is their expertise in other areas that are just as handy when it comes to buying and selling homes. Rick is well-versed in both appraisal and luxury home marketing. Sandra has navigated the professional ins and outs of real estate law. Over the years, the two have garnered many awards reflecting their commitment and passion for real estate and their ability to communicate effectively with clients to push connection and understanding during what can be a stressful time in their clients’ lives. As they approach the pinnacle of their careers, they aim for client satisfaction above all else.
“Your preparedness and professionalism gave me confidence in a somewhat stressful situation.”- Sandra C.
The adage, “it takes a village,” is true in the world of real estate, and Rick and Sandra have immense appreciation for the support their administration team provides. This underpinning gives Rick and Sandra the time to focus heavily on client-facing operations giving every person face time with either Rick, Sandra or both, throughout the entire buying or selling experience.
They are at the forefront of the process and will not compromise on ensuring everything is done right from start to finish by committing to face-to-face interaction with each client.
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“During the process of selling two of our homes this year, we feel a friendship has developed with Rick and Sandra. We cannot say enough good things about the two of them.” – Steve and Angela
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Please feel free to contact either one of them at 705-788-3535 or email at info@WearingParrott.com today.
TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.
The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.
New listings last month totalled 15,328, up 4.3 per cent from a year earlier.
In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
This report by The Canadian Press was first published Nov. 6, 2024.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
