Shawn DeLaat
Here in Niagara the market is off to the races and in this State of Real Estate with Shawn de Laat we’re going to break down what is happening as of January. To help you understand the market better, keep reading or jump to the video below! This is the Davids & DeLaat State of Real Estate – our take on the Niagara Real Estate Market based on what our buyers, sellers and agents experience!
WATCH: The State of Real Estate in Niagara – January 2022
Inventory & Interest Rates in Ontario
Across Ontario we are experiencing historically low levels of inventory. In a report by Scotiabank it states “Ontario would require over 650,000 homes for its ratio of dwellings to population to equal that in the rest of the country.” Scotiabank’s analysis relies on data from 2020, the last year with complete information on hand. To help Niagara grow and build more homes, some of the popular construction companies we’re seeing around town include; Impero Homes, Pinewood Niagara Builders, Empire Communities, Lucetta Home and Rinaldi Homes.
As for Interest rates right now, If the talk of strong interest rates all comes to fruition, there could be a strong balancing come late spring and into summer, offering great opportunities to buy.
What happens when interest rates rise? People looking to buy a home in this pricey sellers market will feel a more-immediate pinch, in the form of a higher mortgage interest rate. If you are also carrying other forms of debt, such as credit card balances, you will also get hit with a higher cost of borrowing.
If you are locked into a fixed mortgage rate, a higher interest rate won’t affect your mortgage payments because you’re already locked in at your rate. If you have a variable-rate mortgage, an interest-rate hike would mean a larger portion of your regular mortgage payment will be allocated to interest as the rates go up, versus principal.
Advice for Buyers in Niagara
Regardless of these changes in inventory and interest rates, we are still working with a lot of buyers.
The advice our team gives to all of our clients based on Shawn’s recommendation, buyers should be patient, “come the spring market throughout March, April, and May we will see more houses being listed.” Explaining, we have low inventory right now due to a few factors, “people do not like to move during the winter so they wait to list their home during a season they would prefer to move in. Additionally, with the people who are looking to sell their homes the low market inventory decreases confidence to list their home with not many options on where to move to.”
Another trend you can expect to continue for years to come is the migration of buyers. Clients are consistently reaching out to make moves out West and East to be closer to family, friends, or simply work from a remote location.
If you’re a buyer, please don’t hesitate to reach out to us here at Davids & DeLaat we can certainly give you the guidance you need to help navigate this crazy market and help you make the best decision for yourself.
Advice for Sellers in Niagara
The seller’s real estate market is no longer how it was 20 years ago when you lived where you work. Working from home during COVID has changed the way companies operate and now employees wanting a change in life are picking up their families and moving wherever.
If you are a seller contemplating on downsizing or going to rent, now is your time to sell! The demand is exponential – a lot of buyers coming here from out of town paying large amounts of money for Niagara properties.
The most popular selling strategy we are seeing right now is to list the property a little lower, hold offers, and on a particular day the seller reviews all offers and picks the highest offer. This is known as “holding offers to review.” This strategy is working well for the sellers right now and pulling in large, heavy numbers for sellers we are working with. That is right this second.
If you are a seller looking to also buy a home, we recommend you wait to take advantage of the houses that will be listed come the spring. In the meantime it is a great opportunity to focus on ways to improve the value of your home, and build a relationship with a real estate agent that can help bring more opportunities to you when the busy time comes.
Do You Have A Custom Selling Strategy?
A selling or buying strategy is most beneficial when customized to match your specific needs, and for that you can always call the Davids & DeLaat real estate team. If you’re contemplating selling or just curious what your home is worth right now, we can help! We’ll provide the proper advice, help you understand the price of your home, discuss when the best time might be for you to sell and assist you with buying a home in the Niagara Region.
