What a year! ….and we are only 3 months in, the term “In like a Lion…” feels fitting, now for the “…out like a lamb” part has yet to be seen.
Right now, more than I have seen, we are seeing tensions high. Sellers, that have been working hard to get their houses ready, and seeing Buyers fading into the distance. Buyers with high hopes for their hefty approvals, only to find that they are not able to get “what they would want for their max”… run a rollercoaster of emotions from one phone call to the next. The market this year has shown its ugly side, and we are sure to change is coming, but, unfortunately, it doesn’t always equal lower values. To help the Buyers, it can’t be to the detriment of the Sellers, because it has been such a heavy Seller’s market for so long, everyone is ready for the shift to a balance.
We are always watching trends, and monitoring for windows of opportunity for our clients. Well, and for our own obsessive interest too. Here are some interesting stats that we are keeping our eye on…
When Days On Market averages are shorter, that means that houses are in high demand, gone are the days of 30 – 60 days on the market to sell, and things move at lightning speed. We see houses sell in a day, regularly. We watch these numbers to gauge how buyers are buying and apply that to our sales.
I can not stress enough how important the price per square foot is to understanding values. The accuracy of reading the market this gives us can be looked at on a broader scale, all the way down to very ridged criteria. If you are really wanting to understand what Buyers are willing to spend for your specific home, this is the number to lean on. Only in the first three months of this year have we seen the greatest spike, but, again, that gave us a first indication that things were getting out of whack.
Here is the “meat & potatoes” of the shocking value difference in our area. Generally, a 5-8% increase year per year is normal for the Guelph and surrounding area. In the last 2 years, we have seen a 40%+ increase, and the beginning of 2022 is starting to show either the same trend or the beginning of the end.
Needless to say, the second quarter of 2022 will be an interesting one. The rise in interest rates, COVID restrictions lifting, travel is back on the radar…the world is opening up, and even before we can get the footing we have hurtles coming our way. We are here, always watching and ready to chat about your options…get in touch, we can’t wait to talk.