January 2022

February 19, 2022

January 2022 has across the board set unprecedented numbers for all areas of Ontario. The sharp increase of house prices has been very discouraging for everyone involved. The shock factor on the values is not from the initial list price to the actual sale number, it is that the houses are selling outside of their market value, wildly outside. At this point in the market, we can’t even use comparables outside of January 2022 for houses now, usually, we pull 3 months’ worth and bring values forward. We often get asked to predict the future of house prices… will the market crash? Is a big one right now. We do not have a crystal ball, but, if we are looking at past behaviors of the market, we believe a big leveling is coming, unfortunately not a decrease. The window of opportunity is coming for those waiting in the wings, but interest rates will likely be higher by then. That means you may get the house for less, but your mortgage will be the same as if you paid a higher purchase price. The old adage is true, now is always the best time to get in the market. 

COVID has had a huge effect on the market. With travel restrictions, shutdowns, reopenings, and re-re openings a lot of Ontarians have been packing away money, or not able to save because of job loss, have decided to move out of province and “cash in”, and having nothing else to do but shop combined with the interest rates dropping before all of this it was the perfect melting pot for a sharp increase in values. It begs the question of what will happen as Ontario starts to open up, and we start seeing the new normal? Will the flood gates open and more buyers in the market? or will we see travel & other life goals take a front seat to the daunting suffocating January 2022 market? The Spring market is just around the corner, time will tell. My prediction, I think that we can expect interest rates hikes, some form of government intervention to the open market, and a lot of Buyers to drop buying a home in Ontario altogether.

Watch for my blog on what I feel is a good answer to cool the market…

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