Did You Miss Your Window to Sell Your Home?
Is the housing market still a seller's market, or is it finally showing signs of slowing down? And what could the changing market conditions, if this profound shift is happening, mean for you as a seller?
Leading real estate professionals have been predicting that the seemingly endless growth in home prices, coupled with an unprecedented shortage of home listings, wouldn't last forever. Several factors suggest that the pivotal moment for housing markets across the country is at least around the corner.
As a seller, you may have been waiting for the best possible time to sell your home, or you weren't ready to sell until now due to personal circumstances. But have you missed your window to sell your home in the post-pandemic seller's market? Here's how you should navigate the changing market conditions if you are listing your home for sale and what an experienced real estate agent can do to help.
New construction numbers increase, but will that correspond to a price fall?
The number of new listings hitting the market is up 4.5% month-over-month. But does an increase in the number of new listings correspond with an end of the supply-demand gap fueling the unprecedented housing market growth over the past couple of years? There is some indication that the long decline in new constructions, which began skewing the market in sellers' favor even before the pandemic started in 2020, is finally coming to an end.
Not quite. If we look at the figures a little closer, we'll see that while the supply end of the housing market chain is slowly recovering, it's still nowhere near the levels of the previous years. For context, the number of active sale listings is still less than pre-pandemic levels. So, purely looking at the supply-demand ratio, it's got a long way to go to becoming as saturated with available homes as it was in previous years. We're still in a seller's market.
As interest rates rise, the number of eligible home buyers will inevitably reduce. In the biggest increase since 1998, the Bank of Canada raised the overnight rate to 2.5%.
While homes listed for sale are still not staying on the market very long, you may not get as many offers as a seller on the day your listing goes live as last year. Still, homes are not failing to sell, and they're going fast.
Local context is always king
Median home prices and nationwide trends always need local, regional nuance to understand how changing market conditions will affect you personally. One thing worth noting is that, right now, large metropolitan areas are recovering significantly from the relative lack of interest during the pandemic. This has created migratory patterns from expensive coastal and urban areas into medium-sized metropoles and suburban areas.
The other trend you should be aware of a seller is that interest rate increases will inevitably hit the lower tiers of the market hardest, meaning that first-time buyers will find it the most difficult to qualify for a mortgage. If you are about to sell a higher-tier family home, you have less to worry about than if your prospective buyer is a first-time homeowner.
But even within the first-time buyer market segment, regional variations will play a key role. This is where a real estate agent with in-depth local knowledge becomes valuable. A real estate agent with experience in your particular type of home in the area where you're planning to sell will have seen it all. They will know precisely who and how to market your home to, ensuring it sells at the best possible price within a desirable timeframe.