Last week the Northumberland Hills Association of REALTORS® released their findings on the January market, and it shouldn’t surprise anyone to learn that the market continues to see some aggressive gains.
Lets get into it.
Listings and sales
Home sales were 13.5 percent below the five year average and 0.2 above the 10 year average for the month of January. Home sales are down, but that’s not suggesting that demand is down, quite the opposite in fact. New listings continue to stagnate to the point that any listing that is on the market is going for well above listing, and generally with no conditions attached. With inventory levels being what they are, we should continue to see this hot market for the foreseeable future.
It come to no surprise to those who have an eye on the market that prices continue to skyrocket. The price for single family homes in Northumberland was up 33.4% vs last January to $775,700, while townhome prices saw a 39 percent uptick to $567,100 vs January of 2021. The average price of home sold in January 2022 was a record $1,122,819, a 57.3 percent increase vs. January 2021.
What does this mean for me?
Well, that would depend on what side of the ledger you're on. If you are home owner looking to grow equity, this is all fantastic news, the lack of inventory on the market and lack of available housing alternatives will continue to see home prices rise, perhaps not over 30/40 percent a year, but that's the same thing we were saying last year.
If your looking to get into the market, this isn't great news. On the ground we continue to see homes selling well over list, with no conditions and bidding wars. For those looking to get into the market, both risk and affordability are areas that you really need to examine before looking at a home. Remaining calm, rational, and focused will help.
The expected rise in interest rates may see a bit of a cooling, however I’m not sure that any rise will see a significant impact on the market given where we are at.
If you looking to get into the market or purchase a home? My best advise is to get all your ducks in lone, have a hard budget and to try to stay as un-emotional and as detached as possible.
Getting overly emotional can lead to some errors in judgement and mistakes come offer day. Have a plan, stick to it and be prepared to walk away if things get too crazy.