Disclaimer: The following is a generalization based on my opinion and factual data pulled from the WECAR Matrix system (graphs not displayed). If you would like to know advice based on your specific situation, please contact me directly!
What is Happening in Today’s Market?
Excellent question – not an easy answer. Let’s call it the “great filter” at the moment – where homes that are desirable are acting as they should (multiple offers and selling on time mostly), and homes that used to demand high prices due to lack of inventory are now acting as they should (sitting on the market, settling on much less than 2 months ago). To break that down further, the act of multiple offers on speculative properties without conditions is nearing an end, at least temporarily. This will really affect people in the middle of buy-sell transactions, and if I’m describing your situation, best of luck.
Homes in all pricing categories are sitting longer on the market than what’s been accustomed early this year and selling closer to list price than ever this year (more on that later). However, the data is different neighbourhood to neighbourhood, town to town. So, if you want exact data, ask me and I’ll share it with you directly. I’m simply stating with a broad spectrum here, folks.
What I can be sure is if your neighbour, friend, person at the coffee shop thinks they know what’s going on, you can confidently tell them they don’t. It’s difficult enough for people who work in this field to get a handle on the situation – which changes daily – let alone “Johnny-know-it-all” to have a grasp. But hey, it’s 2022, that is what people do typically – speak confidently about subjects they have no business doing so about.
Do I Sell My House in This Market?
You can indeed sell your home in this market, and still make an excellent return. Am I about to guarantee this for you? Not a chance – I don’t even know you (again, message me here for a more direct answer to your questions).
What does need to be addressed is expectations. Today’s market is not the market of last month, or even last week. Homes are selling for less than they did in February and March, and are taking longer to sell in many cases. There are many factors to consider when discussing this, and it’s individual in nature. Will the housing market continue to cool down? Perhaps, but the market also rebounded in many aspects in May after the April Interest Rate increase. What do I think will happen? I believe the market will cool for the next month, but homes will still maintain their relative current value. We still have a market under the national average, with socio-economic factors in play (looking at you Stellantis), our region is still on the positive side. Buyers and Sellers always need time to figure out what’s happening in the immediate aftermath of a financial institutional change – that’s what’s happening now.
So, if you do decide to sell your home, just be sure to consult someone regarding your strategy. Also, don’t be offended to see conditions – those are on their way back in force. Lastly, don’t get caught in a bad situation with a buy-sell paradox, and protect yourself at all times.
Do I buy a House in This Market?
Again, you can indeed buy a house in this market, and considerably easier at this particular moment in contrast to the last while. Many investors and speculators are out of the market for the short time being (but not all, and they will return in all likelihood), and unfortunately some buyers are priced out especially with the interest rate increase and new stress tests. With that said, if you are still in the market for a home, this is a good time to be looking.
You will have less competition, a massive selection of properties (unlike early in the year with record low properties on the market), and a slight decrease in average prices of homes. Importantly, you will see more homes listed at Market Price (listed at a price they want, not hoping to get 60 offers), rather than a speculative price. On top of that, you will see more homes accepted with conditions! With lending services tightening practices, protect yourself if you can on the buying side.