Will Home Prices Continue To Come Down?
As the market continues to shift, more and more questions are being asked about how home prices will behave in the coming months. Will home prices continue to come down or start to rise again? If you’ve been interested in selling your home and/or buying a new one but have been intimidated by the fast-moving market, you’re in the right place. This post will explore real estate market conditions and when we may start to see home prices drop.
Rising Interest Rates: What They Mean for the Real Estate Market
The red-hot real estate market conditions we saw in 2020 and 2021 were caused by a few factors, including the Covid-19 pandemic, limited inventory, and historically low interest rates. Interest rates are now on their way back up — while this may not sound like the best news for home sellers or home buyers, it does mean the market has started to settle. In fact, fixed rates are currently at 5.20% to 5.50% and the Bank of Canada may continue to raise its target rate to 3.25% by the end of year. These increased costs are putting pressure on the housing market.
Although the real estate market conditions are cooling, TREB reported a 5.3% increase in average selling prices in June over June 2021 prices.
Should I Wait for Real Estate Market Conditions to Improve?
If you are interested in selling your home, you should not wait. Start the process now! Remember, there’s a lot that goes into selling a home — getting it deep cleaned, de-cluttered, and staged, fixing broken appliances and cosmetic issues, finding a real estate agent, listing the home, preparing the home for showings— and the list goes on.
If that list seems excessively long, it’s because the process can be arduous. So, there’s no need to wait. Get ahead of it and get started now! As the market slows down, it is taking longer for homes to sell — they are still selling, but we’re not seeing people lined around the block, and multiple above-asking price cash offers roll in like we were a few months ago.
Spring and Fall are also considered the best times of year to sell a home. If you start the home-selling process now, you’ll still have time to capture the market of people looking to move before the new school year. If you wait any longer, you’ll be entering the market during an awkward time of year when many families won’t want to move until at least the holiday break or even the end of the school year.
The bottom line is that continued supply shortages and high buyer demand mean that now is a great time for home sellers to list their homes before prices start dropping significantly as interest rates continue to rise.
We Can Help
Whether you’re a home seller or a home buyer looking to navigate these turbulent real estate market conditions, our team of expert real estate professionals can help. We are skilled at negotiating home prices and working with clients during volatile times.