January and February 2022 were the most undersupplied in the Hamilton, Burlington and North Niagara markets ever. Really it was across the board in every other market too. From the Westernmost tip of Canada to the East. Every community, property, and piece of land was sold for a number that most comparables couldn’t justify.
If you were one of our buyers during that time, we started the conversation with, “if you want to be a buyer right now, you have to be comfortable setting a new record with your purchase price.”
This was the reality of early Q1 2022. If you wanted to buy, you quite likely had to set a new record.That's just how it was. So today, if you were a buyer of a house or condo in January or February, your place is worth probably either the same or a hair less. And, that’s ok.
Looking at the median price, (which measures the middle of the market) you’ll see a drop in overall values in most markets, including urban, of 5% to 9% from January/February. If you want to look back at some of the data on that check out our previous months Market Reports.
But, a drop from what? A slide from the madness of January/February where you had all sorts of new price records set. Look at today vs. Q3/4 2021.
I was one of those buyers last June. But, I’m ahead now, and you will be too if you fast forward to the end of this year or early 2023.
All of this drama you hear right now comes from people comparing today to January/February 2022. That’s not a reasonable comparison, but it sure does make a great headline.
If you look at the market, which was performing exceptionally well in Q3/4 2021, you’ll notice that we’re ahead of that by quite a bit. For now, the aggressive growth of early 2022 is being pulled back. So, what if you bought then, and your property is worth a little less today?
Why does that matter? You didn’t make the wrong decision. You aren’t “screwed.” And, I promise you that your property will be worth way more down the road when you’re ready to sell it and move on.
You know the saying: the only guarantees in life are death and taxes? Well, I like to say, “The only guarantees in life are death, taxes, and your real estate being worth more than you paid for it when you’re ready to retire.”
You can't say that about the new Hyundai in the driveway, or about almost anything else you buy.
If you're playing the long game....which you should be. YOU WILL WIN GUARANTEED.
If you're selling, now is the time, even more than in previous months to invest in making your home stand out from the crowd and getting it in front of as many eyes as possible (of course).
If you've been looking to buy. We know you can't time the market but it's looking more favourable for buyers. Especially if we dig up some of those properties that were not marketed correctly.
We've lived this last weekend on multiple properties. The biggest one was our Caryndale property. We sold for $310,000 over asking in a hectic bidding war while a very comparable house around the corner had to decrease their price to get more activity and even a single offer. We were listed at $1,290,000.00 and sold for $1,600,000.00. They were listed at $1,260,000.00 and decreased their price to $999,000.00 and still haven't sold.
It also happened on our Martha St. property. Two similar and very comparable properties listed across the street before we listed. One, dare I say was actually even nicer. We prepped, staged, and marketed it heavily to a targeted group. 43 people went through, 8 offers and a really great deal was put together for the sellers. The other two properties have decreased their prices, didn't get the response they wanted. Then cancelled completely, relisted at an even lower price and are still both sitting at the time of writing this.
So, again, if you're selling put the time, money and effort into making your home stand out. But, and I'd say more importantly now, make sure your home is marketed to very targeted groups. Buyers that specifically have raised their hands saying they want a property like yours. A solid strategy will be your best friend right now, in both buying and to the surprise of many sellers, in selling.
If you'd like to see some pictures and data on these or any of our other properties, let me know.
Now let’s look at the numbers.
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HAMILTON INCLUDES: Hamilton West, East, Centre, Mountain, Flamborough, Dundas, Ancaster, Watertown, Stoney Creek
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NIAGARA INCLUDES: Grimsby, West Lincoln, Smithville
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HALDIMAND COUNTY INCLUDES: Dunnville, Cayuga, Caledonia, Hagersville, Oneida, Seneca, Rainham, Canborough, Sherbrooke
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