Exclusive Information from the Team Bush Home Selling Team
Everyone is asking what the future of the local housing sector, fueled by low interest rates via the COVID stimulus low interest-rate environment will look like when rates increase. Certainly the heady days of homes selling in hours with multiple “cash” offers is over and we are quickly moving toward a new normal. But what will that look like?
Does that mean that we are poised for a housing correction or worse, a crash? As real estate prices continued their upward march, investors and homeowners alike are asking themselves what the housing market will look like in the future.
THE HOUSING MARKET IS SLOWING, this fueled by interest rate increases. Depending upon the neighborhood, sales have declined from 17-19% to as high as 41%. Prices have fallen to near pre-COVID levels, with more potential interest rate increases ahead of us. There are still challenges ahead as these factors affect affordability.
Another impactor is home construction. Previously supply chain issues (the consumer prices of wood were at their highest in more than a decade) caused significant new home price appreciation which was a contributing factor to the property bubble in early 2022.
The House Builders’ chief executive said he had cut the company’s 2019-2024 forecast by about 45%. A drop in housing demand is making management afraid to over-invest in new projects. It seems likely we will experience a slowdown.
The Canadian Real Estate Association reports the nation’s consumer confidence continues to dive in 2022, according to the Conference Board of Canada’s survey, which is an index of consumer confidence; Overall sentiment was down across all regions of the country. This survey attempts of read the sentiment about making major family purchases remains at historically low levels across the country.
HOUSING MARKET FORECASTS for the future tell us the expected trends in the housing industry over the next decade: Despite declining buyer optimism in buying houses, homebuyers’ interest remains high. This is most likely true of younger buyers, who are often first-time buyers but struggle to make down payments as rental prices continue to rise.
People Less Willing to Sell their Homes Now, too.
Home prices will struggle at least through 2022, according to analysts. This can reduce people’s choice to sell their houses. This means that unless folks need to sell their homes, they may elect to sit on the sidelines until they see the stability in home prices that they’re looking for. This may also negatively impact the quantity of the properties put on the market during this time.
Millennials represent more than half of the buyers
In today’s housing markets. This relates particularly to buyers who are first-time home buyers attempting to purchase a property, so the buyers’ pool is larger than it may seem–an indicator of demand. Add to that, Canada is bringing in 1.3M immigrants to its shores in the next 2 years. They will need housing as well.
All buyers in the market today face the challenge of affordability.
As interest rates increase, it does cause a potential fall in prices, but what we have seen is that the prices are not falling in proportion to the decrease in buyer affordability.
What does it mean for me? For sellers:
The meteoric rise in prices have been washed away and expectations must be realigned. For Buyers: You may be able to negotiate prices for tens if not hundreds of thousands less than at the peak of the market. Good deals do exist yet and the interest rates are still well under long-term industry averages.
Navigating this changing market
For both buyers and sellers requires steely eyed, common sense advice and good information. If you are looking to buy or sell a home, give us a call, we will give you the no-nonsense, straight up information you need to make a good decision.
There are indications that the real estate market and housing prices are shifting rather than there being a crash in the housing market. We are also seeing creative ways for buyers to enter the market, often with down payment help from parents/relative, co-ownership and other means.
Your situation is unique so call us and we will give you an honest overview for your unique situation. For a free, no obligation chat: Call 905-308-1877
We have special financing options available as well as tenants who will rent these homes if you need assistance with that.
If these homes do not interest you, then contact us about other great investment opportunities.
Just know the good deals go fast!
If you know of anyone else who may be interested in building wealth through real estate investing, please pass on our contact info or provide us with theirs.
SEE UNLISTED AND PRE-MARKET HOUSES FOR SALE IN HAMILTON & SURROUNDING AREAS!
Our Home Hunter Service gets you immediate access to homeowners willing to sell, but not yet listed for sale publicly!
To get this free access, Call 905-308-1877
As you may have heard, CityKidz does amazing things for the children living in the Hamilton area. We are thankful to have such a wonderful organization in our community that give of their time to rech out to over 2000 children every week by providing them programs, meals and a chance to thrive in less desirable circumstances so they can achieve their dreams.
CityKidz depends on volunteers and donations to help them invest in a different outcome for children living in poverty. This is why we here at Team Bush – Your Home Sold Guaranteed have resolved to do what we can to help. For homes we sell this year, we are donating $10,000 or more to help them in their quest to Break The Cycle of Poverty in the city of Hamilton.
Who do you know considering making a move you could refer to our award-winning real estate sales team?
For anyone considering a move that we help, you can rest assured that not only will they get the award-winning service we are known for, but that a solid portion of the income we receive from the transaction will go toward a very worthy cause.
We want to make it easy for you to refer your friends, neighbors, associates or family members considering making a move, so you can pass along our contact info to them. You can also learn more by visiting: www.helpthekidz.com Of course you can always call us direct as well at 905-308-1877.
You and your referrals mean more than ever to our team. As we move forward in this new season, please know we are extremely thankful for you and your being a special part of our business.