As we draw 2021 to an end, I want to thank all my faithful followers and clients who get my emails and listings and sent me messages about the market and their thoughts. It truly is a privilege to work and get to know you all. So I have not been sending out monthly updates mainly because there is nothing really NEW happening. The market has gone "WILD". Just this week a semi in Pickering sold for over $1 million. A Semi???? I am shaking my head in disbelief.
How on earth do our young people get a home in sort of market? Many have said they are on hold hoping something gives and they can jump into the market as the prices are now out of their reach. Others are saving and trying to as much as they can to purchase their first home and then there are others who are using the equity built up in their home to purchase an investment property. The interest rates remain at an all time low but we have heard from Bank of Canada that 2022 there will be rate increases by the first quarter.
Generally January and February are slower (especially in Snow Countries) because of weather but I don't think this will be the case this year. Nothing is stopping this ... not even Covid. We have had record prices and each moth is going higher than the month before. It seems real estate is fuelling the economy right now and the government is not going to stop it any time soon.
They are talking about a First Time Buyers Saving Account ... which I am sure we will hear more about in the future and also the banning of blind bidding. I have had mixed feelings about the last one. I cannot tell you how many times once a property is sold, the losing parties say, "I would have paid more than that if I knew"... so will it curb prices, I highly doubt it. I think they need to do something. At this rate, when this corrects (and it will correct) there will be a lot of collateral damage. Especially to the person who gets caught paying top price when the market slows or corrects. Even 10% when you are paying $1M is $100,000 and that is A LOT of money to people that is buying for the first time.
We are in a wild 2022 if you ask me. Everything is unknown at this point but I would guess the housing market will probably continue rising into April 2022 at least... I remember April 2017 when they brought in the Foreign Buyers Tax, then the market took a hit but nothing like what we are about to experience.
How are these homes appraising for these crazy prices? Insured Mortgages or HUGE downpayments (and in some cases money from parents and grandparents). As long as you can weather the storms and wait it out if it does drop, you will be fine but if you can't, that is when you will see big problems.
But for now, "multiple offers" continue. Bully offers are probably your best shot if the Seller will entertain them but even that, has to be high and firm and appealing enough to make the Seller want to take it and not entertain the "bidding wars" that are happening.
If you are thinking of selling, my first question is, "where are you going to go?" If you have a plan, ie. cottage, investment property, rent etc. that's great. But if you don't, then you will get caught up in this on the buying side. Trust me it isn't fun. Many buyers are so fed up ... multiple offers, multiple tries and now just feel like they are chasing the market because every month the prices are escalating higher and higher with the next house achieving record prices for the street.
To view the entire Market Watch Report as of the end of November 2021: https://www.slideshare.net/MichelleMakos/november-2021-market-watch
It is a Sellers Market and the inventory in Durham Region is extremely low. List prices mean nothing. You can check SOLD prices of properties through my site at https://solds.househunting-durham.com and enter the address, city etc. and view them anytime from your phone or computer.
On that note, I am around over the holiday season and my phone is always with me. If you need anything or have any real estate questions, feel free to call or text my cell 416-300-3004 directly and I would be happy to answer or assist.
I want to personally wish you all a very Happy Holiday season, enjoy your loved ones while you can and I wish everyone the best of health, happiness and prosperity in 2022. It takes a Village they say and you are a part of mine.
Be Safe, Stay Healthy
PS. Most of my business comes from your kind referrals. They are most appreciated as always. I promise to work as hard for them as I would for you. Be Well !