Shawn DeLaat here with the Davids & DeLaat Real Estate Team with your July Market update for 2022.
What a roller coaster ride 2022 has been for real estate so far. Recent interest rate announcements has shifted the market to a BUYERS MARKET which makes this a favourable time for potential homebuyers to purchase their dream home or investment property.
HOME BUYERS IN NIAGARA
If all the talk in the media about interest rates leaves you feeling hesitant about moving forward, remember this: rates go up, price of houses go down. This means ticket prices are now more attractive to buyers. Speak with professionals who will guide you and alleviate your fears. Book a consultation with a mortgage broker, and financial advisor to determine how these turn of events can work for you. Devise a planned budget and strategy for reasonable expectations and outcome.
3 PRICING STRATEGIES to take note of:
- Aggressive Pricing – sellers who want to quickly get their house sold and off the market
- Fair Market Value Pricing – sellers who adjust price to reasonably match the current perceived market value
- Past Market Trends Pricing – sellers who base the price on previous trends
Understanding pricing strategies is important for both buyers and sellers.
Planning ahead and being aware of the possible results of each strategy can create a smooth and seamless transaction with mutual benefits. This is where trust and confidence in the relationship you have with your real estate agent will come into play. Revisions to the strategy is not unusual when chasing a declining market. Come September, when further changes to rates could occur, you may need to sit down with your realtor to adjust the strategy and revisit the value of your property.
HERE’S HOW THE NIAGARA MARKET PERFORMED IN JULY 2022
NIAGARA HOME SELLERS WHO ARE ALSO NIAGARA HOME BUYERS
Yesterday’s price is definitely not today’s price. Which is good news for buyers.
Bidding wars have turned into aggressive pricing by sellers who want their home to move as quickly as possible off the market. Even with added incentive to buy now, sellers should not expect neighbours to become inquisitive and a bit envious by how expeditiously the lawn sign changes from ‘for sale’ to ‘sold.’’
Days on market have drastically increased as well as the opportunity for conditions of the sale. If you are a homeowner who has plans to sell and buy, we suggest consideration in what to include in your Sale Of Property Conditions (SOP). Include conditions that will be proactive in avoiding precarious situations that could possibly arise when closing on your current property or new purchase.
If planning to downsize or buy up, keep in mind that if you’re not getting that big number on the sale of your house, you’re not going pay that big number on the house you are planning to buy.
Those who purchased a home 5 to 10 years ago are in a great position to enter the market due to equity already accumulated over the past number of years.
THE FUTURE OF NIAGARA
The Niagara region continues to be one of the most favourable places to live in the GTA. As the fall season approaches supply will diminish. A lot of people don’t like to list during the winter months, so don’t waste time getting caught up in the doom and gloom that is being put out there because every challenge presents an opportunity to pivot, scale, and dig deep to achieve goals. What we can hope for is the market will hit the proverbial bottom and prices will no longer fluctuate for a period of time allowing the market to grow. We encourage you to close your ears to the sensationalism and instead seek out information that applies to your specific situation so that you can make informed decisions around your real estate transactions.
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.