Welcome to 2022! We are returning to work, getting back to our routine after the holidays and maybe you are wondering what the real estate market will be like this spring. What exactly happened in 2021 with all the frenzy fuelled by the pandemic and severe lack of inventory?
To put things in context, a Seller's Market is when we have 2 to 3 months of inventory, a Balanced Market is 4 to 5 months and a Buyer's Market is defined as 6 months and over. In 2021, we had on average about 2 weeks worth of inventory.
This coupled with the extremely strong demand by GTA dwellers reassessing their lifestyle due to the pandemic and transformed work environment, created this situation. The attraction to Simcoe County was without precedent. While buyers are flowing, sellers are legitimately hesitant, some for health concerns and others because they cannot afford to upgrade relocating. The majority of sellers were people moving out of province, seniors moving in with family members or into specialized establishments better suited to their needs.
Interestingly, the Townhouse Segment experienced by far the strongest growth in the number of units sold and average price in comparison to 2020 than any other segment. This stems from the Smaller Detached Home Segment, which saw fewer transactions in 2021, as those buyers shifted and opted for townhouses, as the price point of the detached homes was trending up swiftly.
Condominiums, that were underperforming for a number years, are now as active as the other segments of the market. They are becoming the dwelling of choice for homeowners choosing to downsize and those no longer interested in property maintenance. Condos of course are a strong option for first-time home buyers trying to get in the market because of the accessible price point.
Buying a home was and will still be a challenging task for the upcoming months. The market is constantly changing and properties are moving almost instantly. To avoid disappointment and frustration in 2022 you need to be ready and prepared. Having a reliable and responsive professional on your side is of the utmost importance to navigate through these times with confidence.
Sellers also need to be fully supported in their decision as cutting corners may cost them a significant amount of money without even knowing it. Don't be blinded; resist the temptation to go for what may seem like a good deal.
As I always coach my clients, the best experiences and outcomes are directly related to the collaboration and communication we have together as a team. I dedicate myself to my clientele; answering questions, helping to plan their project, and of course, applying my secret sauce.