Should I Sell Now or Wait to List My Home?
Many have been asking, should I sell now or wait? I hope to add some perspective in this blog post. It’s true that during the pandemic we saw the increase in the price of residential properties and a slowing of the inventory of properties for sale. This increase in the sales price was influenced by the low interest rates from the Bank of Canada.
“There were also a significant number of migrations among the Canadian population as citizens leveraged government allowances like CERB and CRB in order to relocate away from major population centres. However, as the Bank of Canada continues to ramp up their rate hikes in order to slow inflation, prices have begun to stagnate in many markets across Canada.”
The Bank of Canada continues to raise interest rates as they try to slow down inflation. The result of this is the stagnation of the sale price, as mentioned in the above quotation. Still, there seems to be confidence in the major real estate markets such as Toronto and Vancouver. So now we have to ask ourselves again, should I sell now or wait?
The Canadian Real Estate Market
It’s obvious that the price of a residential property in Canada has increased significantly over the last few years. That’s why it’s always a good idea to move forward with some level of caution and to speak with a real estate professional. Timing is very important when it comes to this sort of volatile market. We know that the price increases are due to the low interest rates.
However, we’re now starting to see a slight increase in the sale of residential real estate. Even though that increase is on the slower side, the value of a residential property is still seeing an increase. Some prospective buyers still have concerns about the possibility of a 2023 recession, this is causing there to be some caution going forward. Once again we ask ourselves, should I sell now or wait?
The decision to move and to list your property is a very big deal and we know that timing really is everything. The price of a residential property has increased over the past few years. This has been the result of those low interest rates we mentioned earlier. Plus, as the demand slows we can see that the value of these properties continues to increase. Homebuyers in 2023 appear to be a lot more cautious than they have been in the past.
“If public real estate investor opinion is any indication, despite the shifting market dynamics, 2023 might still be a good moment to sell your house.”
In a recent report, it was expressed that 59 per cent of realtors feel good about the current market. The demand for inventory in Canada has actually increased in certain cities across the country. However, the number of available homes for sale is lower than it was pre-pandemic.
“The RE/MAX Canada Housing Inventory Report examined housing supply and current listings in eight significant Canadian cities from July 2013 to 2022 and discovered that in seven of those markets, inventory levels were below the 10-year average in that year.”
Selling During Rising Interest Rates
Another reason why there might be a lower level of inventory is the fact that as the interest rates rise people are becoming more cautious. However, this does mean that the price of a residential property will likely decrease.
This means that the market will become more of a buyers market, which can have some advantages. Plus for many it might be the right time to get out of the market and sell before this occurs. The other side of this is that many will want to hold on to their properties until the market improves and the recession is over. There’s also the added issue of the increase in the mortgage rates as well.
“The Bank of Canada seems to be staying the course with further rate hikes, which could mean that fewer qualified buyers might lock themselves into prohibitively expensive monthly mortgage payments if they purchase homes in this economic climate.”
Some sellers might also consider whether or not this is a good time to downsize. Which can sometimes mean saving money over time. There’s a possibility that you could end up with a promising mortgage or even capital gains tax.
Over the next 18 months we will most likely see the price of a residential property decrease further, this goes for the number of sales as well. However, as we see the price of residential property decrease that means for some that the market becomes more affordable. Opening the doors for new prospective buyers that might not have been able to purchase a home in the past.
“The Bank of Canada uses the property market to fight inflation. Many real estate agents anticipate that the downturn will reduce inflationary pressures to the point where the Bank will be able to roll back some mortgage rates next year. When Canada’s housing market stabilizes the following year, this will make homes more affordable. Such occurrences ought to pave the way with local market conditions for a lasting revival.”
Contact The VanDinther Team
There was a lot of information in this blog post and you might have some questions. The VanDinther Team is here to help and to answer your questions. Whether you’re looking to see your home or buy another property, the VanDinther Team has the right experts to help you make the right moves.
Please feel free to contact the VanDinther Team by phone at 905-330-2002 or by email at info@loriv.com. You might also want to see what your home might be worth and you can do this by trying our “What’s My Home Worth” calculator. The entire VanDinther Team is looking forward to working with you soon!
