Shawn DeLaat here with the Davids & DeLaat Real Estate Team, wanting to wish you the happiest of New Year’s. This is your December market update.
2022 is in the books and it was one for the ages with what we experienced. Through January, February, and March we saw the most epic of highs in our real estate market with record-breaking sale prices. Then, we experienced interest rate hikes, slowing the market and compressing prices.
HITTING THE BOTTOM
So through April and the summer, prices dropped dramatically. They seemed to slowly decrease through the winter, and we are now hitting the bottom. The average sale price in Niagara at the height of the market in February was $805,000, and here we are today and the average sale price is $570,000. So we have seen a 30% decrease in our housing prices from the height of the market in February 2022.
WHAT DOES THAT MEAN FOR THE FUTURE?
Decreases! We are hitting that bottom of the market, offering great opportunities for you as buyer. So take advantage of these prices because what’s here today, could be gone tomorrow. We are anticipating more demand as immigration is at record highs and we know that a lot of people took their foot off the gas last year as far as wanting to buy a house. We’re now at a place where prices and interest rates have settled and we are anticipating more demand, but not only that, inventory is starting to thin.
WHERE ARE WE NOW? DECEMBER MARKET STATISTICS
2023 WILL BE THE YEAR OF RE-LISTED HOMES
There are not a lot of homes on the market that are priced according to the market. So what we’re seeing is a lie. The houses that were listed last year are being re-listed again this year at lower prices to compensate for where the market has adjusted. Due to this we’re not seeing a lot brand new listings. Not only that, a lot of the properties hitting the market are actually properties for rent. The positive thing is that rent has stayed relatively high, leading us to believe that a lot of people chose to go to renting before buying and a lot of those people may become buyers this year.
WHAT TO LOOK FORWARD TO IN THE NEW YEAR
Again, the data is showing that demand will pick up. What buyers need to know is that the time to purchase a house is now, and what sellers need to know is that prices will not rapidly increase this year. We are anticipating a little bit more of a balanced and normal market, which excites me. It’s fun for everybody when conditions can be put in by buyers, sale of property offers put in by buyers and therefore protect you guys.
If you have any questions about the market, or if you’re a buyer looking to buy a house, please don’t hesitate to call us, we can get you pre-approved and out there looking for a home. If you’re a seller who has questions about their home, please don’t hesitate to contact us! Find our podcast wherever you listen to your podcasts or visit us on our Davids & DeLaat YouTube channel. We’re always happy to help, and I look forward to catching up with you next month with our next market update.
Take advantage of the opportunity to purchase at a more affordable price! Contact us to discuss a selling strategy that’s custom fit for your home. Visit us on Youtube to learn more about these changes or schedule your free home evaluation to find out what your home could sell for in today’s market.