Usually, the cold weather and the snow in January translates into a slower start to the real estate market—but not this year. The market last month continued to spiral upwards out of control.
An astonishing 96% of homes listed in January went to multiple offers and sold an average of 26% above their list price.
To put that in context, last year homes sold for 16% above their list price on average, and that was considered very high at the time.
The market continues to be plagued with low inventory, which has contributed to pushing the average sale price of a detached home in Cambridge over the million-dollar mark; it’s up 10% from just a month ago, to $1,005,265—a first. And it’s not just detached homes seeing big increases; the average sale price for all residential homes was up 8% to $928,156.
“More people listed their homes in January than December, and we will likely continue to see the number of new listings increase through to spring,” says Trish Lewis, Sales Representative, GoWylde Team/ReMax. “This cycle is a usual trend, but I believe the lifting of restrictions will mean we will see more listings hit the market earlier this year.”
“Many, including myself, expected the Bank of Canada to raise the interest rates on January 26th. They chose not to but indicated that interest rates would go up March 2nd and then multiple times throughout 2022. Inflation is at 4.8%, which is more than double the BOC target of 2%.”
Lewis predicts that this will be another year of increasing prices and fierce competition among buyers to purchase a home. And if you don’t have to buy, this is the perfect year to sell. You might be retiring to a second home or plan on renting, for example. For others, this marks the perfect opportunity to move to a less expensive market, such as purchasing a home in Eastern Canada or even heading south to Florida.
There are other advantages beyond just the high price you will get for your home, though that’s certainly a great incentive. Selling in this market is much less stressful because your home will sell very quickly and you can demand your terms. If you have any investment properties, it’s an excellent time to start selling those too.
Says Lewis, “You are still better to buy now than you will be a couple of months from now. We can’t even predict how much more you will be paying then. As a buyer, be flexible on your requirements and creative with securing a property in the market.”
The January numbers show that 2022 is off to a bullish start, indeed; hopes for a cooling market have been dashed. Stay tuned for what’s sure to be an even hotter Spring.
For more information, or to contact real estate agents Mary Wylde and Trish Lewis, visit the GoWylde Team or call 519-826-7109.