Are you preparing to buy or sell your home in 2022? If the answer is yes, you may be feeling a little confused—and you’re not alone. There’s no denying that 2021 was unusual for real estate, to say the least.
Over the course of the last year, we’ve seen real estate records broken, and we’ve experienced pandemic-related uncertainty about what might occur next. As 2022 approaches, it makes sense to reflect and take stock.
While the future is impossible to predict, we can help you understand how things are going now, and what likely lays ahead. Here are a few things to consider…
Here’s what buyers should know
For buyers, navigating the Peterborough real estate market lately has meant dealing with low inventory and high competition. November (the most recent month for which statistics are available) saw sales growth of 7.4 per cent year over year. It rose even more, to 17.4 per cent, when all of the months up to and including November were factored in.
Demand is expected to remain steady, and (barring some sudden major change) the inventory issue will likely persist into 2022.
In other words, if you’re planning to buy, there may be some challenges ahead. You may find yourself in multiple-offer scenarios, competing with other buyers who want to secure the perfect home just as much as you do. To prepare, it’s best to ensure that you’re ready to move quickly.
It’s important to know that the Bank of Canada will raise interest rates in the next year, with the first hike forecasted to occur in April. If you want to take advantage of current rates, locking one in sooner rather than later is key. That means obtaining pre-approval and ensuring you know how long it’s good for (up to 90 days, in some cases).
Given how uncertain the last couple of years have been, many buyers are thinking long-term. Detached homes have historically been a good investment in Peterborough, though some features (such as room for an office) are in higher demand than they were previously.
Since the work-from-home trend isn’t going anywhere, you may want to factor that into your decision. Either way, a knowledgeable Peterborough real estate agent can help you make the best possible purchase for you.
Ready to learn more about buying with our team? Discover our purchase process right here.
Here’s what sellers should know
If you’re thinking of selling your Peterborough home in 2022, there’s some good news for you. If low inventory and high competition continue into the new year (which is very likely) it could mean more interest, more offers, and a higher price than you might have expected. Consider this: in November, the average home price in the city rose 31.5 per cent year over year. The year-to-date number was up 29.4 per cent.
So, what does it all mean in terms of strategy? It depends what you want most out of your sale.
If it’s the highest possible price you’re after, your agent may suggest choosing a number that could encourage multiple offers. On the flip side, a quick, convenient sale may be your biggest priority, which will also impact the steps you should take. No matter what you want, you’ll probably find that you’re in the driver’s seat—and the right real estate professional can help you make the most of it.
One thing to be aware of is interest rate hikes, which are predicted to start occurring in the spring. They’ll mean less purchasing power for many buyers, which may stifle buying activity somewhat. That said, low inventory will likely help balance things out, so this may not be an impediment for sellers.
Wondering whether selling with us is the right move? Learn more about our selling process right here.
What about cottagers?
If you’re thinking about buying or selling a cottage next year, there are a few things to keep in mind. First off, there was an incredible amount of buyer interest in these properties in the Kawartha Lakes region in 2021, for obvious reasons. Everyone wanted their own little piece of paradise during the pandemic, which led to a dramatic surge in sales and prices.
There’s every reason to believe that interest in cottage country will remain strong in the year ahead. If you’re thinking about selling, it could be a great time to cash in. Even if you’re not in a traditionally hot district, you may find that you receive a ton of interest and a flurry of offers. We’ll see how the year proceeds (and your agent can help you assess any market shifts that occur), but things are certainly looking up.
If you’re keen on buying in 2022, you may have to be flexible. That could mean considering locations that are a little further out from the area you’ve been dreaming of. Of course, if you love life at the lake, it’s well worth looking into it—there’s a lot of potential out there. You should also be aware that higher prices and rising interest rates may make it harder to qualify for a cottage mortgage.
One option to consider is pooling your resources with family and friends, which will allow you to share the costs and labour involved.
If you’re thinking about buying a cottage, there are a few things you should know. Check out some of our most popular posts on the subject:
- Preparing Your Cottage as a Short-Term Rental
- Buying a Cottage Today to Live in Later
- 4 Things to Consider When Completing Cottage Renovations
A forward-looking approach
If you’re thinking of making a move in 2022, now is a good time to get your ducks in a row. By ensuring your finances are in order and finding real estate experts who know your area, you can take your next step with confidence.
Ready to talk about your next Peterborough real estate purchase or sale? Get in touch with our team to set up a consultation here.