High Demand + Low Inventory = Rising Home Prices
Historically, the real estate market, like the temperature, tends to cool in the winter months. However, everything is pointing to this winter being an unusually active one.
The demand for housing that we saw in 2021 is not just going to disappear in 2022. Many buyers who failed to purchase in 2021 will continue their home search throughout the winter and into the spring market. Additionally, new waves of demand are expected as immigration start to ramp up over the next few months.
“As inventory fails to keep pace with buyer demand, home prices in the GTA are expected to see another double-digit percentage rise in 2022.” CREA
As bidding wars have become common place and new listings continue to come fewer every week, purchasing pre-construction has become more and more attractive to homebuyers. No bidding wars, the price is the price, however there are still way more buyers than units available.
Every one of our clients takes action when the time is right for them, whether it’s an investment purchase or it’s time to move. You hear rumblings about people not moving because they can’t get what they want or things are too expensive and the bubble is bound to burst. Well I can share with you that these may be thoughts that happen through out the process but we had a record amount of sales and prices continue to rise. Even though in past years we may see the typical trend of real estate activity decline during this part of the year, now more than ever there are always people who are buying and selling their primary residences or searching for their next investment opportunity. The time to buy is when the time is right for you and when the opportunity is available.
“Real estate is the best investment you can make
and obviously you know I am a little bias.”
Ownership of real estate begins for most people when they purchase their first home. This is a great way to get into the market. As a home owner instantly other doors open in regards to finance as you begin pay down your mortgage and instantly you begin accumulating equity. Equity is the monetary difference between what you paid for the house and what it would sell for. It’s possible that at some point you can then leverage your equity to invest in something by refinancing your mortgage and earn even more money by using these funds.
There isn’t another investment which requires only 20% of the value to purchase it and where you can get the remaining 80% paid off by someone else, while the asset appreciates.