Housing Prices

Should I Sell Now or Wait?

Should I Sell Now or Wait?

Home Buying and Selling, Housing Prices, Real Estate Market / /

Should I Sell Now or Wait to List My Home?

Many have been asking, should I sell now or wait? I hope to add some perspective in this blog post. It’s true that during the pandemic we saw the increase in the price of residential properties and a slowing of the inventory of properties for sale. This increase in the sales price was influenced by the low interest rates from the Bank of Canada. 

“There were also a significant number of migrations among the Canadian population as citizens leveraged government allowances like CERB and CRB in order to relocate away from major population centres. However, as the Bank of Canada continues to ramp up their rate hikes in order to slow inflation, prices have begun to stagnate in many markets across Canada.” 

The Bank of Canada continues to raise interest rates as they try to slow down inflation. The result of this is the stagnation of the sale price, as mentioned in the above quotation. Still, there seems to be confidence in the major real estate markets such as Toronto and Vancouver. So now we have to ask ourselves again, should I sell now or wait?

The Canadian Real Estate Market

It’s obvious that the price of a residential property in Canada has increased significantly over the last few years. That’s why it’s always a good idea to move forward with some level of caution and to speak with a real estate professional. Timing is very important when it comes to this sort of volatile market. We know that the price increases are due to the low interest rates. 

However, we’re now starting to see a slight increase in the sale of residential real estate. Even though that increase is on the slower side, the value of a residential property is still seeing an increase. Some prospective buyers still have concerns about the possibility of a 2023 recession, this is causing there to be some caution going forward. Once again we ask ourselves, should I sell now or wait?

The decision to move and to list your property is a very big deal and we know that timing really is everything. The price of a residential property has increased over the past few years. This has been the result of those low interest rates we mentioned earlier. Plus, as the demand slows we can see that the value of these properties continues to increase. Homebuyers in 2023 appear to be a lot more cautious than they have been in the past. 

“If public real estate investor opinion is any indication, despite the shifting market dynamics, 2023 might still be a good moment to sell your house.”

In a recent report, it was expressed that 59 per cent of realtors feel good about the current market. The demand for inventory in Canada has actually increased in certain cities across the country. However, the number of available homes for sale is lower than it was pre-pandemic. 

“​​The RE/MAX Canada Housing Inventory Report examined housing supply and current listings in eight significant Canadian cities from July 2013 to 2022 and discovered that in seven of those markets, inventory levels were below the 10-year average in that year.”

Selling During Rising Interest Rates 

Another reason why there might be a lower level of inventory is the fact that as the interest rates rise people are becoming more cautious. However, this does mean that the price of a residential property will likely decrease. 

This means that the market will become more of a buyers market, which can have some advantages. Plus for many it might be the right time to get out of the market and sell before this occurs. The other side of this is that many will want to hold on to their properties until the market improves and the recession is over. There’s also the added issue of the increase in the mortgage rates as well. 

“The Bank of Canada seems to be staying the course with further rate hikes, which could mean that fewer qualified buyers might lock themselves into prohibitively expensive monthly mortgage payments if they purchase homes in this economic climate.”

Some sellers might also consider whether or not this is a good time to downsize. Which can sometimes mean saving money over time. There’s a possibility that you could end up with a promising mortgage or even capital gains tax. 

Over the next 18 months we will most likely see the price of a residential property decrease further, this goes for the number of sales as well. However, as we see the price of residential property decrease that means for some that the market becomes more affordable. Opening the doors for new prospective buyers that might not have been able to purchase a home in the past. 

“The Bank of Canada uses the property market to fight inflation. Many real estate agents anticipate that the downturn will reduce inflationary pressures to the point where the Bank will be able to roll back some mortgage rates next year. When Canada’s housing market stabilizes the following year, this will make homes more affordable. Such occurrences ought to pave the way with local market conditions for a lasting revival.”

Contact The VanDinther Team 

There was a lot of information in this blog post and you might have some questions. The VanDinther Team is here to help and to answer your questions. Whether you’re looking to see your home or buy another property, the VanDinther Team has the right experts to help you make the right moves.

Please feel free to contact the VanDinther Team by phone at 905-330-2002 or by email at info@loriv.com. You might also want to see what your home might be worth and you can do this by trying our “What’s My Home Worth” calculator. The entire VanDinther Team is looking forward to working with you soon! 

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Burlington Real Estate

Burlington Real Estate Statistics for February 2022

Home Buying, Housing Prices, Real Estate Market, Real Estate Trends / /
Real Estate Market Statistics for February 2022 

The REALTORS® Association of Hamilton-Burlington (RAHB) reported a total of 1,228 sales in February 2022 of residential properties within the RAHB market area. When it came to the number of sales, RAHB reported an increase of 71 per cent month over month. However, when compared to February 2021, there was a 4.4 per cent decrease. 

RAHB reported that new listings had an 84.2 per cent increase month over month. When we compare the new listings to the same time last year, there was a slight decrease of 1.2 per cent. 

The average price of a residential property price within the RAHB market area for February was reported to be $1,104,163. This was a 4.2 per cent increase compared to the previous month. This property price was also a 30.3 per cent increase when compared to the same time last year. 

Residential Market Activity 

When we take a look at the above chart, Residential Market Activity, we’re able to see what the average price of a property was. Then we can compare it to the previous year. It also allows us to see other areas within the RAHB market area. 

Hamilton West reported a total of 76 sales of residential properties in February 2022. We can clearly see that this was an increase when compared to the same time last year. When it came to the average price of a residential property, it was reported to be $801,129, this was an increase when compared to the same time last year. 

Let’s take a look at Hamilton Centre, for February it was reported that there were a total of 108 residential property sales. The average price of a residential property in this area was reported to be $719,540. This was an increase when we look at what the price was in February 2021. 

Finally we’ll take a look at Burlington, it was reported that for February 2022 there were a total of 254 sales. This was a slight decrease when we compare it to the same time last year. RAHB reported that the average price of a residential property was $1,413,836, while in 2021 it was reported to have been $1,065,038. We can now take a look at the below map and get a closer look at each area within Burlington. 

Average Price by District

We can take a look at the above map, Average Price by District, and really get a good look at each area within Burlington. You will notice that there are sub area allowing us to see more targeted areas. We can see what their average residential property price was an how many sales there were for the month. 

Sub areas that we should take note of for February 2022 are 30, 31, 33 and 35. Each of these sub areas had the greatest number of sales. Area 35 is located in the most sought after neighbourhood in Burlington. This neighbourhood is called Millcroft and it had the greatest number of sales. Millcorft a total of 69 sales, with an average residential property price of $1,329,921. 

Another area of note to take a look at is area 38, this area had the highest average residential property price. It was reported to be $3,033,888. This area had a total of 8 residential property sales for the month of February 2022. The next and final chart that we’ll take a look at is the blow chart, Burlington Residential Table. 

Burlington Residential Table

Finally, we’ll take a look at the above chart, Burlington Residential Table, illustrates a more in-depth look at the real estate statistics. We can clearly see that for the month of February there were a total of 254 sales of residential properties. This was a decrease of 17.5 per cent when compared to the same time last year. 

It was also reported that there were a total of 349 new listings. Which was a 7.2 per cent decrease compared to February 2021. When it came to the average price of a residential property. It was reported to be $1,413,836, this was a 32.9 per cent increase compared to the same time last year. 

The median price of a property was reported to have had a 34.9 per cent increase to $1,306,000. It’s always interesting to take a look at these numbers and can get a better understanding of the Burlington real estate market. Now we can summarize and get a closer look at what the REALTORS® Association of Hamilton-Burlington think about these statistics. 

The REALTORS® Association of Hamilton-Burlington February 2022 Statistics 

When we summarize the statistics for the real estate market in February 2022, we can see that the REALTORS® Association of Hamilton-Burlington reported a total of 1,228 sales. These sales were reported to have been within the RAHB market area. 

The sales of residential properties saw a 71 per cent increase month over month. While the average price of a property was reported to have been $1,104,163. This was an 4.2 per cent increase compared to previous month, and a 30.3 per cent increase compared to February 2021. There were a reported 1,675 new listings within the entire RAHB market area, which was an 84,2 per cent increase month over month. 

We can also take a closer look at the number of detached home sales for February 2022. RAHB reported that there were a total of 815 sales, with an average price of $1,250,027, this was a 2.3 per cent increase. There were also 1,142 new detached home listings in February 2022, thats a 91.2 per cent increase month over month. 

There were 221 townhouse sales in February 2022 and 186 sales of apartment-style properties. For apartment-style properties this was a 10.1 per cent increase compared to the same time last year. For townhouse this was an 11.2 per cent decrease when compared to February 2022. 

“The number of sales and new listings rose substantially month over month, and kept pace with the feverish demand of February 2021. However, while the number of new listings surpassed each February over the last ten years, the demand continued to impact inventory and fuel the residential average sale price to a new record-high. In acknowledging that the average sale price can be concerning to buyers, at the time of this release, there were more than 100 residential detached properties of the 500 available that were listed under $700,000. Therefore, if homeownership is on your bucket list, you should consult a local RAHB REALTOR® to help you navigate the market.” – RAHB President Lou Piriano. 

For More Information About These Statistics 

If you’re interesting in learning more about these February 2022 real estate market statistics, please refer to the Burlington Real Estate Statistics for February 2022. You’re also able to contact Lori VanDinther and her team as well. 

Contact Lori and Team 

Do you have any questions about the Burlington real estate statistics for February 2022? Lori and her team are waiting and able to help answer any that you might have. If you’ve been wondering what your home might be worth, please give our What’s My Home Worth calculator a try.

Lori VanDinther and her team would love to connect with you and help you find the right home. If you’re interested please feel free to reach out via phone at (905) 632-2199, or by email at info@loriv.com. 

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Homeownership in Canada

Homeownership in Canada: What to Expect

Burlington Real Estate Agents, Home Buying, Housing Prices, Real Estate Market / /
Homeownership in Canada 

When it comes to homeownership in Canada there’s a lot to know and to prepare for. It can sometimes be difficult for young prospective buyers new to the market. This is due to the rising housing prices that we’ve seen over the past few years. 

There was a high demand in 2020 but a low inventory which caused the housing prices to rise. This created what we call a sellers market, meaning that the seller can look for the best offer on their property, causing the seller to go for the best offer. This is usually higher than what the asking price was to begin with. 

In a 2016 Canadian census, it was reported that in the year 2000 the rate of homeownership was just below 64 per cent and increased to 68.55 per cent by 2020. This was based on a group ages 55-64. “The 2016 Canadian census provided some helpful information for professionals and homeowners alike. While the data is from several years ago, it still provides a solid snapshot of what home ownership is like in Canada.”

It was also reported that, “78% of homeowners are couples, some with children and some without. Royal LePage Signature Realty also reported that around 48% of young buyers in the 25-35 age group owned their own home. As well, 92% of these young people have a positive association with real estate investments and believe that purchasing a home is a good financial investment.”

This census also indicated that many of these homeowners had a higher education than secondary school and had a higher income. It also indicated that this group of homeowners had responsible spending habits. As of 2022 we know this may have changed because there have been many individuals that have been affected by the ongoing pandemic.

Real Estate Market Statistics 

While it is true that the ongoing pandemic has had an impact on many industries and the economy, real estate saw on of its biggest booms. According to the Canadian Real Estate Association (CREA), there were a reported 551,000 homeowners that were able to purchase a home in 2020 and 2021. The pandemic caused mortgage rates to drop which lead to low borrowing rates and also low interest rates. 

“Because of this, many buyers realized that they could purchase a home and lock in a low interest rate with a low monthly mortgage payment. This led to high demand for houses and a shortage of houses on the market.”

COVID-19 and the Real Estate Market

It was also reported that the pandemic caused there to be more out of town buyers. They were purchasing residential properties outside of the larger cities to move to more rural locations. Due to this we saw the median cost of residential property rise 52.9 per cent in places such as Muskoka to $625,000. 

While some chose to still buy and sell during the pandemic, there were some who decided not to make any moves. This was due to the fact that for a while there were no in-person open houses and everything was moved to online. However, it was still reported that 84 per cent of potential new homeowners stated that they still plan to buy a new home in the near future. 

When it comes to the affordability of housing in Canada there’s a lot to consider. According to the CREA, the average price of a residential property rose more than had been previously predicted. By mid 2021 the price had risen to over $700,000.  

This rise in the price of a residential property caused there to be an increase in monthly mortgage payments, causing there to be a rise in the downpayment. This then caused there to be less entry level housing for new homeowners. We can take a look at the December 2021 real estate market statistics to see what it was like for buyers in Burlington, Ontario. 

Burlington Real Estate Market Statistics for December 2021

According to the REALTORS® Association of Hamilton-Burlington (RAHB), there were a total of 811 sales of residential properties in the entire RAHB market area. Sales in the area saw a decrease of 32 per cent since the previous month, and an 11 per cent decrease compared to the same time last year. 

In December 2021, it was reported that there was a 50 per cent decrease in new listings when compared to November 2021. There was a six per cent decrease in new listings since December 2020. The average price of a residential property was $931,787 in the entire RAHB market area. This was a two per cent increase compared to the previous month and a 27 per cent increase compared to the same time last year. 

In Burlington, the price of a residential property was $1,221,317 with a total of 136 sales. This was a 26 per cent increase when compared to the same time last year. The median price of a home in December 2021 was reported to be $1,155,000, which is a 36.9 per cent increase. 

“December 2021 saw a new residential average sale price record to close out the year. The number of properties changing hands in December did not rival the momentum from December 2020, however, we have never seen the months of inventory and active listings available this low before. Generally, most people wait until after the holidays to list their homes, but with approximately 300 residential properties on the market heading into 2022, we are expecting to continue to see tight conditions with such low levels of supply.” RAHB President Lou Piriano

Contact Lori VanDinther and Team

There are a lot of real estate statistics talked about in our blog this month, it’s important to see what’s going on in the market. This way we can better understand why prices and mortgage rates are they way they are. If have any questions about these statistics my team and I would be happy to help. 

You can contact us, we love getting to connect with our clients, to help you find the home of your dreams in Burlington, Ontario and surrounding areas. Please contact me either by email at info@loriv.com, or by phone at 905-632-2199.  

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