2022 has been a wild year for Real Estate.
After several years of the market behaving in a particular way, the spring 2022 market has seen a bit of a change, brought on by several reasons, from the war in Ukraine to the interest rates increasing, to inflation and gas prices, to the COVID-19 restrictions easing and people returning to work.
People are justifiably worried about the current circumstances. If you made plans to buy a home or sell your home, it might seem daunting or risky to move forward with your plans. We get a lot of questions about what a Buyer’s Market is compared to a Seller’s Market, and where we stand right now in summer 2022.
A buyer’s market means that there is more inventory available than there are buyers interested in purchasing. Home prices are generally lower, due to the surplus of inventory providing buyers with more choice. Buyers are easily able to negotiate conditions upon their offers which sellers will have to accommodate if they want to sell quickly.
By contrast in a seller’s market, there are more buyers than there is inventory to accommodate them. Home prices are higher and buyers generally find themselves in bidding wars which can drive up the prices when multiple offers are on the table. Homes sell fast, and if there are too many conditions on an offer, sellers will pass it over because there is a likely more desirable offer around the corner. A seller’s market is what we have seen in the past couple of years, and is something Canadians particularly living in Southern Ontario are all-too-familiar with.
Based on May 2022’s market stats, it appears that we are moving towards a balanced market, where there is a balance between buyers and inventory. Homes are sitting a little longer on the market and buyers are beginning to have more negotiating power and are able to add some conditions into their agreements without getting immediately dismissed. This is, however, mutually beneficial because sellers are still able to capitalize on the gains of their home prices, as there has yet to be any significant drop in prices.
As we shift into a more balanced market, it is more important than ever for both buyers and sellers to work with a fantastic Realtor® who will go full out® for their clients. Exceptional marketing is becoming more important than ever for sellers to make sure that they get the most value for their home. Homes can still sell quickly if the marketing is done right so be sure to choose a team that does not cut corners. It is still a great time to sell your home and move forward with any plans that you’ve made as long as you have the right team behind you.
For buyers, this is providing an excellent window of opportunity to get into the market, compared to several months ago. Work with your Local Realtor® to ensure that you are negotiating a fair price and finding a home that fits your needs. Speak to a licensed mortgage agent who will help you make your money work for you.
The market may fluctuate but just remember: if you find a home that is right for you, it is always a good investment.
Right now, it is the perfect time to sell and the perfect time to buy a home. With over 9,100 Best Real Estate Experiences and counting, our team is ready to go full out for you® and provide the Best Experience Guaranteed. Our Professional, Loving, Local Realtors® are here to give you the Professional Guidance that you need in any market. We have a proven system backed by a team of experts and we deliver Exceptional Marketing which will sell your home faster and for more value.
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