Over the last year, the pandemic played a role in the spike we saw in buyer interest. As working from home and socially distant gatherings became the norm for most, we looked to do so from the comfort of a backyard and with more space. As we near the end of 2021, we do so the same way we started – with remarkably low inventory and strong buyer demand that looks like it will maintain throughout 2022. The November State of Real Estate has Shawn reflecting on what happened in real estate, and sharing his predictions of the housing market for next year.
Reflection: 2021 Housing Market in Niagara
- January/February: Low housing inventory,
- March/April/May: Competition was high and some buyers left the market because of the bidding wars
- June/July/August: COVID protocols slowly lifted, a lot of demand for buying homes dissipated; with this, some sellers chose not to compete and enjoyed their summer with fewer restrictions.
- September/October: Brought more sellers to the market, and with this increased inventory the demand from buyers started to grow exponentially.
- November: The demand to buy a home is out-producing the listings on the market.
The trends from 2021 is anticipated to continue well throughout December and into January and February of next year. If you are a seller, an investor, or someone looking to downsize who does not have to buy another property, the next three months are going to be prime time for you to sell.
The Prediction For Next Year
A common topic of conversation right now is the uncertainty of interest rates increasing. Shawn’s prediction suggests interest rates rising will not affect the real estate market too drastically. Saying, “what it will do is reduce some of the buying power pushing buyers into other markets, making Niagara yet another place of desirable, affordable living.”
Another factor to consider when looking to next year’s Niagara real estate market is new construction projects. With new construction inventory to house the demand to buy, we will begin to see a strong market return to Niagara.
Here are Shawn’s predictions month by month:
- January/ February: Low inventory on the market with strong demand to buy
- March: Inventory will begin to increase – Canadians prefer to sell their houses when they look the best
- April/ May: The inventory will lighten slightly, and the demand and will stay strong to buy
- June/July/August: Similarly to the 2021 summer, the market will be a little more mellow as buyers may be enjoying the summer
- September/October: Listings will influence the buyer demands for the remainder of the year
Affordable Living For Young Ontarian’s
Affordable living and the migration of families from Niagara is a close reflection of competitive markets in Burlington, Hamilton, and cities closer to the GTA. With the influence of COVID and social distancing, many families have re-evaluated their living situations. With the allowance of working from home, families who live in business districts and populated downtown areas were able to move further away into less dense communities, like Niagara. This allowed them to social distance from the comfort of more indoor and outdoor space – great for new and growing families.
This migration has made it especially challenging for buyers aged 29 to 35 trying to afford a home in our region and as a result they are now looking at other areas of Canada.
We have seen population increases almost everywhere, those who want to stay in Ontario are finding homes further north of Toronto; possibly back to their roots or moving near family members. We have also seen a large migration outside of Ontario, with a very strong pull toward East Coast life out in Nova Scotia, and out to the west in Manitoba, Saskatchewan, and Alberta; a trend that has started and will continue into next year.
What Does This Mean For Sellers?
- If you are looking to sell and you do not have to buy, January and February will be great months for you to sell, taking advantage of the strong demand to buy.
- If you are a seller with a property under $1M, the months of January, February, March, and April will create several strong opportunities for you.
- If you are a seller with a high-end property ($1M+) later in spring or summer will be a good time for you to consider listing your home.
If you are not sure what your home is worth, it may be time to get your home evaluated by an expert. Even if you’ve recently had an evaluation done, the market has changed so much in 2021 that an updated evaluation can give you a better idea of what your home could sell for today.
What Does This Mean For Buyers?
If you are a buyer looking to purchase next year, be patient. Just like in previous years, demand will be strong at the beginning of the year with low inventory. As inventory increases through spring and into summer, buyers will have more options.
There will still be competition, but offer prices may not be as high as offers we see when inventory is low. So, if you want to buy a house, take advantage of the additional inventory in the spring/summer months.
A Final Note From Shawn
Here at Davids & DeLaat we’re always happy to help you out in any way we can. Whether you’re a seller thinking of selling or a buyer thinking of buying, please contact us. We will provide you with a personalized strategy to help you purchase a home or sell your home and maximize the profit of your sale or get you into a house with the least amount of competition. We promise you Real Honest, Real Friendly, Real Estate assistance because that’s the Davids & DeLaat Difference.