Real Estate Market

Should I Sell Now or Wait?

Should I Sell Now or Wait?

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 Statistics

Burlington Real Estate Statistics for February 2023

Burlington Real Estate Statistics 

The REALTORS® Association of Hamilton-Burlington (RAHB) reported a total of 765 sales in February 2023 in the entire RAHB market area. This was a 37 per cent decrease from the previous year. The majority of this decrease was in properties priced lower than $800,000. 

“An increased hesitancy to list impacted the detached sector hardest. New listings fell to 1,203 in February, 27 per cent below the same time last year, and new listings relative to sales prevented significant inventory gains. While inventory levels are much higher than reported last year, they are still below levels reported for this time of year before the pandemic.”

In the Burlington real estate market area there were a total of 246 new listings of residential properties. This was a 30 per cent decrease when compared to the same time last year. The average price of a residential property in Burlington had a 23 per cent decrease compared to the previous year and was $1,064,513. There were a total of 146 sales in February 2023, which was a 38.1 percent decrease compared to the same time last year. All the regions in Burlington reported seeing declines in both sales and new listings in February. 

Burlington Real Estate Statistics

“For the first time in two months, the benchmark prices rose above $1,000,000. The unadjusted benchmark prices in February rose to $1,017,600. While this is over 21 per cent lower than the high reported last February, it is still well above levels reported before the pandemic.”

Regional Summary 

The above chart, Regional Summary, gives us the opportunity to see how each area within the Burlington market did in February 2023. RAHB reported that there were year-over-year declines when it came to both sales and new listings. However, they also reported that conditions weren’t as tight as they were this time last year. 

The area that had the greatest number of sales in February was area 35, better known as Millcroft. This is the most sought after area in the Burlington real estate market, with a total of 39 sales, this was a decrease of 48.7 per cent compared to the same period last year. There were a total of 58 new listings, this was a 40.8 per cent decrease compared to the previous year. The average price of a residential property in Millcroft was $912,106, this was a decrease of 30.8 per cent. 

The next area that had a great number of residential property sales was area 31. There were a total of 37 sales, this was a decrease of 22.9 per cent compared to the previous year. This area had a total of 50 new listings, only a 13 per cent decrease compared to the same time last year. The average price of a residential property had an 11 per cent decrease and was $1,085,326. Now we’ll turn our attention to the map below, Average Residential Price by District, and get an even closer look at the Burlington market.

Average Residential Price by District

The map, Average Residential Price by District, illustrates the different residential areas within the Burlington real estate market. We’re able to see what the average price was and whether that price decreased or increased in February 2023. 

It was noted previously that the area with the greatest number of sales was Millcroft or area 35. This area is also the most sought after in Burlington and had a total of 39 sales and 58 new listings. The average price of a residential property was $912,106, this was a decrease of 31 per cent. 

When we look at the different areas on this map we can see that there were some small differences compared to the same time period last year. It looks like all areas saw some form of decrease when it came to the average price of a residential property. The next chart we’re going to review will be the Property Type Comparison, so that we can better understand the differences between them. 

Property Type Comparison

The above chart, Property Type Comparison, allows us to compare the differences between each property type. We’re able to see the average price and whether that price has had a decrease or increase. This chart also allows us to see how many new listings there were for each property type and how many sales there were in February 2023. 

When it comes to detached properties we can clearly see that there was a decrease of 47.5 per cent with a total of 73 sales. There were 119 new listings, this was a decrease of 39.3 per cent compared to the previous year. The average price of this type of property was $1,398,800, a decrease of 22.3 per cent. 

Semi-detached properties had a decrease of 18.2 per cent when it came to sales with a total of 9 in February 2023. This type of property had a total of 14 new listings, there was no decrease or increase in this statistic. The average price of this property had a 18.3 per cent decrease and was $975,722 compared to the previous year. 

The next property type that we’ll review is the row house or townhouse. This type of property had a total of 43 sales, with a decrease of 20.4 per cent compared to the previous year. There were a total of 54 new listings, this was a 32.5 per cent decrease. The average sale price of this type of property was $791,368, a decrease of 27 per cent compared to the same period last year. 

Finally, the last property type that we’ll review is apartment-style properties. There were a total of 39 sales in February 2023, a 36,1 per cent decrease compared to the previous year. Apartment-style properties saw a small decrease of 7.8 per cent  in new listings with a total of 54. The average price of this type of property was $760,410, this was a very small decrease of 0.5 per cent compared to the same time last year. 

REALTORS® Association of Hamilton-Burlington Real Estate Statistics 

The REALTORS® Association of Hamilton-Burlington (RAHB), reported a total of 765 sales in February 2023 in the entire RAHB market area. It should be noted that this was a 37 per cent decrease when compared to the same time last year. This decrease was mostly seen in properties that were priced lower than $800,000. 

In Burlington it was reported that there were 246 new listings in February 2023, which was a 30.5 per cent decrease compared to the previous year. RAHB also reported that when it came to sales there was a 38.1 per cent decrease with a total of 146. The average price of a residential property in Burlington was $1,064,513, this was a 23 per cent decrease compared to the previous year.

“Demand at the lower end of the market is increasing as higher interest rates impact affordability and attainability. Buyers have more options than they did a year ago and are less likely to compete in unfavourable market conditions. Sellers at the high end of the market appear reluctant to sell, presumably because to move and take on a new mortgage rate could equal a higher monthly payment.” – Lou Piriano, RAHB President. 

For More Information About These Statistics 

Are you looking for more information or want a more detailed and in-depth matrix of these real estate statistics? If so, please refer to the Burlington Real Estate Statistics for February 2023.

Contact the VanDinther Team

Do you have any questions about the statistics reported in this blog? If you do, one of the members of the VanDinther Team would be happy to answer them for you. Have you been wondering what your home might be worth, try our “What’s My Home Worth.” 

Please feel free to contact the VanDinther Team anytime and someone will be more than happy to help you find the home you’ve been dreaming of. The VanDinther Team has been working with clients in the Burlington and surrounding areas for decades and want to “Help You Make The Right Moves!

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What is a balanced real estate market?

What is a balanced real estate market?

What is a balanced real estate market?

What is a balanced real estate market? The real estate market has seen a lot of change recently and that means a move toward a more balanced market. Learning about the different market types is important for those seeking to purchase a home. In this blog, I’ll discuss what you need to know about a balanced real estate market. 

Sellers have had the upper hand over the last few years, with the Canadian housing market working in their favour. However, this is about to change as we see the market shift away from a sellers market and move into a more balanced market. But what does this all mean exactly?

During the peak of the pandemic a lot of cities in Canada saw price increases in the cost of residential properties. This then created very intense bidding wars and in some cases the home buyers were skipping important steps, such as home inspections. This time period was very much a seller’s market and there were historically low mortgage rates, adding to the intensity. 

The Bank of Canada is currently raising the interest rate in an attempt to lower inflation. In turn the Canadian housing market is now experiencing a moderation and many regions across the country, and are now heading toward this more balanced real estate market. Let’s learn more about this balanced real estate market.

The Canadian Real Estate Market

When we talk about a balanced market it’s also important to learn about the other types of real estate markets. There are three, balanced market, seller’s market and buyer’s market. You can imagine what the last two mean, but the balanced market is when the supply, or inventory, is meeting the demand.

Rather than the market being in favour of the buyer or seller, it’s now balanced. The number of people looking for a home is matching the number of homes that are for sale. There are factors that help to determine a balanced market such as stable residential property prices, homes being sold around the selling price, inflation, unemployment.

According to an article by RE/MAX Canada, the areas that are expected to experience this balanced market are the GTA, Mississauga, Winnipeg, Regina, Calgary and the Greater Vancouver Area. There will still be some areas that will continue to be a sellers market and those areas are Halifax, Montreal and Ottawa.

RE/MAX Canada’s outlook suggests that the national average price of a residential property will see a decline of about 3.3 per cent. They also predict that sales will rise more than one-third, or 34 per cent, of the housing markets that they analyzed. 

This will be positive for about 54 per cent of the population, says RE/MAX Canada. Those 54 per cent say they have a positive financial situation. This is while 38 per cent of Canadians feel they do not have a desirable financial situation. This is concentrated by those living with a lower income and those that are not currently homeowners. 

Contact The VanDinther Team  

Do you have questions about the current real estate market? Lori VanDinther and her team are able to help answer any questions or concerns you might have. Please feel free to reach out directly at 905-632-2199 or by email at info@loriv.com

If you’ve been wondering what your home might be worth, give out “What’s My Home Worth” calculator a try. You can also find us on Facebook and Instagram, give us a follow and let’s start looking for your next dream home! Our Client’s Success is Always been our #1 Priority!

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