The real estate market has been stable since the crash of 09. That's 13 years of a strong market and people buying houses making it a very long seller's market.
Since it's been so long since it's been a buyer's market, people forget or never experienced a normal market.
During COVID the real estate market saw the biggest jumps in value. With inventory so low for the past 2 years, seeing typical offers with conditions makes it seem odd.
We are seeing more and more of this now that the interest has gone up and inventory is starting to grow. One question that keeps coming up is “ Is the Real Estate market going to crash in 2022”.
I can't see it crashing in 2022 because the interest rates have not increased that much to deter home buyers.
Things have slowed down but we think that has to do with everything that is going on in the world now.
For example, No one knows what the outcome will be with regards to the war between Russia and Ukraine.
Another point that has people concerned right now is the hyperinflation that is going on around the world.
Technically it's not classified as hyperinflation because what's reported is 5%. But what's reported and what actually happened are two different things.
I think we can all agree that inflation is not 5%. Things are starting to become very expensive in all segments of the economy, that's including Real Estate.
The people we feel the most sorry for are first-time home buyers as it becomes less likely that they will be able to achieve homeownership.
A report showing that parents have helped out with a lot of the new homeowners was released not too long ago. This is a clear indication that millennials are having a harder time saving up the amount of money that is needed to buy a new home.
Even with all the incentives for first-time homebuyers.
It isn't a secret that interest rates will continue to climb over the next couple of years which is going to make it hard for homeowners to buy a home.
Interest rates increasing will make it harder for homeowners to be approved by a lender. In our opinion, the increase in interest rate will slow down that market but not crash the market.
I don't think you will see a drop in home prices by 40%. We can't see a $1M home going for $600k.
Canada’s immigration plan will offset the increase in interest rates.
People always ask when is a good time to buy real estate. There are only 2 good times to buy real estate, one of the times is 10 years ago and the other is right now.
Real estate is something that is always a good option to buy as it will never go to a 0 value.
We always say, never to rush to purchase a home. But also never stop looking as you may find your dream home sooner than you think.
Call us today at (416) 885-8557 and let's chat real estate.