05/24/2022
“The market has shifted.” I’m 100% sure you’ve seen that one min the last 4 weeks… so let’s talk about it.
1) You’re absolutely right. It has shifted. Sellers are having to wait to get properties sold. Agents have to put in more work to sell homes and in general buyers have more time to make a sound decision. Homes ARE selling for less depending on the area and type of home. There’s much less activity in the market in general. Prices have still been higher than last year but home sales are down ~40%.
2) If you’re waiting for prices to CRASH. Well… let me tell you, so are many other buyers. If everyone had a magic pill to know when the market has bottomed then there wouldn’t be so many people from 2008, 2017, etc. waiting on the sidelines (still) trying to get INTO the market. Truth is there’s never a way to time the market, only time IN the market. If you have the means, don’t wait to buy real estate…buy real estate and wait.
3) IMO: Interest rates likely won’t stay high for too long. Halting one of the biggest industries of our economy isn’t good for anyone. Not for buyers, sellers, governments or lenders. I foresee another rate hike come June 1st followed by a rate hold or pull back 3-6 months after. As much as unaffordable homes are a crisis. So is inflation. The Government is trying to tackle this in RECORD time. This likely won’t do much and they’ll hit the brakes.
4) We’ve been in a housing crisis for YEARS. Much before the v i r u s. Canada wants to build 1.5M homes in 10 yrs. We’ve been building around 99k per year (as of last yr). This means it’ll take 15 yrs to build that many homes. Certain trades are on strike. This doesn’t help our crisis. As half a million immigrants enter Canada (each year for the next minimum 4 years) as a place to call home. The demand will only get higher, while inevitably, supply remains low. That, plus sellers will get sick of their houses sitting on the market, buyers scared to pull the trigger. Homes comes off market, and then… low inventory is back.
All in all, my point is that if you’re waiting to buy the time is now. If you’re looking to sell, it’s all relative; The time is still now.
What’re your thoughts?