Shawn DeLaat here with the Davids & Delaat Real Estate Team and this is your November 2022 market update.
I have good news for everybody, we are now approaching what could be considered a normal real estate market. This means houses may linger on the market, so the overall days on market for homes has increased, but the prices do seem to be stabilizing and balancing. We are anticipating another rate hike or a few more to come, but not large. This may put prices down a little further but not incremental like we experienced in July and June right after the spike in the market.
BUYERS IN NIAGARA
You still have an opportunity to take advantage of these wonderful prices that you’re seeing. We are anticipating more demand to come in 2023 and we know a lot of buyers sat on the sidelines this year to understand how interest rates were going to affect the market and see where pricing was going.
WHAT DOES THIS MEAN FOR SELLERS?
What you need to understand is that the market is again, normal and balanced. If your house is priced appropriately, you’re going to sell within 30 to 60 days. Don’t anticipate your home is going to sell overnight, but it will sell in a reasonable amount of time if it is priced appropriately.
WHERE ARE WE NOW? NOVEMBER MARKET STATISTICS
If you look on the MLS, a lot of houses are overpriced. Come the new year, those houses will either get canceled or expire, therefore coming off the market and lowering the inventory levels. We also looked at the hot sheet, and as of today there are 39 new listings. Of those listings, 9 of them were rentals and 11 were properties that were already listed and now re-listed at new prices (you would not consider that new inventory). So from 39 houses, 20 houses cannot be considered “new inventory” which means only 19 new product homes were listed on the market.
WHAT THE NIAGARA MARKET WILL LOOK LIKE IN 2023
Demand will be strong next year, however it looks as though inventory will slow down on hitting the market. This is something very important to watch as a seller and buyer because when there’s less inventory and larger demand, prices will potentially go up again.
Sellers, if there’s lower inventory, you’re more likely to get a better dollar for your house, which is something you may see come the future. What we do know right now is that buyers, your opportunity to purchase a home is now, and sellers, for those of you who want to go and buy a new house and sell your current home, it is a fantastic time to do that. For the other sellers who are looking to make big bank off the market, you’ll have to wait it out a little further, but your time may be coming in the next year or two years for the big dollar amount.
We might see this market really start moving over the next 12 to 24 months, but for now it seems as though we’re going into a more stabilized and balanced market. This is great for everybody because individuals can get conditions in on properties, financing, home inspections or if you have a house to sell, you can get a condition on the sale of your house.
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.