When Will the Market Slow Down?
The 2021 market has been crazy—will it slow down in 2022?
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People have been asking me a lot lately: When is this market going to end? Is it going to slow down? Is it going to crash?
Though I wish I had a good answer for that, I really don’t. When is the best time to sell your house seasonally speaking? Traditionally, things tend to slow down in December going into the new year. People are busy with the holidays and their travel plans, so there’s not as much activity.
My advice for those who are thinking about selling is: Don’t list your home on the market between December and the first two weeks of January. The market begins to pick up in the third week of January, and even more so as we get into February since people are getting back from vacation.
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I don’t think that the market is going to slow down any time in the foreseeable future.
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Inventory is currently at an all-time low. We have less than two months of inventory available on the market right now, and the number of new listings hitting the market is also low. November of this year was record-breaking in terms of price, and that was in part due to pressures caused by our low inventory. Many properties, especially in Toronto, are getting five or six offers apiece. A $1 million home on the east end sold with 30 offers on it, which is unheard of.
Another major factor is our interest rates, which remain extremely low. There have been predictions of rates rising in the first and second quarters of the new year, but it shouldn’t be a drastic increase. All in all, money is currently cheap, which makes home-buying more affordable. The problem is that first-time buyers are having difficult times finding properties because they’re all competing with each other. The market has also increased by 20% in the last year, which is incredible.
Ultimately, I don’t think that the market is going to slow down any time in the foreseeable future. Prices will continue to increase during the beginning of the year, but hopefully, things will begin to normalize some by summertime.
If you’re thinking of buying or selling a home or you have any questions about real estate, don’t hesitate to give us a call or send us an email. We’d love to help.
