Whether you’re contemplating buying your first home, investment property, deciding to downsize or move to a bigger home,  there are many questions that need to be answered before you can get started.

Ask yourself these 4 "W" questions to make your decision to move an easy one.

1. WHY are you buying/moving?

Get grounded in why you want to move. Is it finally time to purchase your first home? Do you need more space for your growing family or now that the kids have left, is the big house too much? Are you moving because of necessity? Maybe relocating for work or some other reason. It can be tempting when you start looking at beautifully staged homes online to start imagining yourself elsewhere. This will help you stay focused on your needs and help you get real about whether now is the time to make a move.

2. WHEN would you like to be moved in?

Do you have a timeline or a deadline that you have to be moved by? This will put your search into perspective. If you need to move asap you have the motivation to get started now. If you want to be opportunistic you may want to be more aggressive in your preparation to ensure you’re ready if the right opportunity comes along. If not, you can take it slow. Either way finding the right resources, Realtors®, lenders who can support you at a pace that works for you is key.

3. WHERE would you like to be?

Is there a specific area, community, or building you want to be in?  Would you like to be closer to work, transit, recreation, schools, family/friends? Having a firm idea will allow you to assess your options and determine if you can make your move now. As your Realtor® we can help you assess the types of properties available in your desired area(s) and what home values are there.

4. WHAT type of home do you see yourself in vs. What you can afford?

This one is a two-parter. In today’s competitive market housing prices can be deceiving so getting a clear picture of what you’re looking for vs. what you can afford is the key final step to determining if now is the right time for you to make a move.

1. What kind of home would you like to live in?

Would you prefer a condo or freehold, townhouse or detached? Bungalow, 2-story or split-level? New or resale? How big? How many bedrooms, bathrooms? Backyard or no backyard? How do your options reflect your needs or the needs of your family? What are your must-haves vs. your nice to haves?

2. What is your budget to purchase that home? 

Understanding what you can afford will help narrow down your options to the best homes for you. From there you can determine if you’re ready to make a move.

Working with your Realtor®, we can connect you with lenders to help you understand your financing options. As your Realtors® we can help find the ideal properties that meet your needs within your budget and guide you through the whole process from start to finish.

Call us at the JSA team and we can help you gain greater clarity on your options and connect you to valuable resources to help you make this important decision. We treat our clients and prospective clients the way we’d want to be treated if we were in your shoes. Whether you're ready now or not, it's ok. No pressure. Just people helping people.

Here are 3 things to consider when choosing a Realtor®

Will they make you a priority? Are you their primary client or just one of several they are trying to service right now? You want an experienced Realtor® or team on your side working in your best interests. If they can’t put you first, it’s time to interview another agent.

Will they explain the process? It’s great to get down to brass tax but you need to know what to expect so there aren’t any surprises.

How well do they know the local market? Whether buying or selling you need a partner who’s familiar with home values in your market.

As a family-run business, our team’s focus has always been on service. Focusing on your unique needs is a priority for us. We want your real estate experience stress free so we explain the process and connect you to the resources you need. Finally, we study the market we serve every day so you can feel confident on offer day.

Call us today for a free no-obligation home buying and selling consultation.

Jim Direct: 905-409-9967

Ben Direct: 905-995-3372

What’s driving real estate demand as we start 2022?

The GTA market continues to be affected by a housing supply crunch and an ongoing demand. While 2021 was the best year for new housing starts in Ontario since 1977 buyers won’t likely see the benefit from added inventory for at least a couple of years. Across the province, we have a long way to go in terms of adding housing inventory to meet demand. Currently, a large number of buyers from 2021 are still trying to make a purchase in 2022 and that will keep demand high to kick start 2022. 

Expect to see a very strong return of international immigration further increasing demand for housing in the GTA throughout 2022. Canada reached its 2021 target adding 401,000 new permanent residents and plans on adding 411,000 new immigrants in 2022 to support economic growth and shore up labour shortages across the country. The influx of new residents will keep the housing market competitive.

So what’s the bottom line? 2022 will continue to be a good year to sell with high demand and prices forecast to increase.

Sources:

https://www.reuters.com/world/americas/canada-meets-2021-immigration-target-with-401000-new-permanent-residents-2021-12-23/

https://www.canada.ca/en/immigration-refugees-citizenship/news/notices/supplementary-immigration-levels-2021-2023.html

https://financialpost.com/moneywise-pro/no-relief-in-2022-experts-predictions-for-canadas-housing-market 

What could slow the housing market in 2022?

The obvious answer is an increase in lending rates. Mortgage interest rates have already seen slight increases in 2021 and the Bank of Canada has hinted that it will be tightening its policies in 2022. In 2021 we saw changes to the mortgage stress test moving from 4.79% qualifying rate to 5.25% and a 0.5% increase in mortgage rates, in 2022 we may see more increases.

“Doug Porter, chief economist and managing director at BMO Financial Group, says financial markets are bracing for as many as five 25-basis point increases in the Bank of Canada’s lending rate next year, which would take it to 1.5 percent from 0.25 percent today.”  - Financial Post

The key factors impacting potential rate increases could be the impact of inflation on the economy, the impact of COVID-19 variants like Omicrom as well as the US Federal Reserve who have already positioned themselves for a rate hike in 2022. As a general rule of thumb, US interest rate changes tend to have an impact on longer-term loans like mortgages in Canada.

Look for mortgage rates to increase throughout the year. As prices rise and borrowing costs grow we could see a slow down in sales volume and there is potential prices level off but even a 1.5% bump in interest rates would still be below the qualifying rate for mortgages. With inventory so low it may not have a huge impact on prices.

So, what’s the bottom line? Mortgage rates will affect borrowing costs but not necessarily impact pricing and there will still be lots of buyers competing for a limited supply. If you’re thinking of making a move start preparing now. Talk with your lender about how rising rates could impact your actual borrowing costs as the year unfolds and start looking for available homes in your desired areas. It may take time to find what you’re looking for so being proactive will put you in a more favourable position.

Need a reliable contact to discuss your mortgage needs? Message us and we can provide some excellent options.

Sources: 

https://www.cbc.ca/news/business/powell-canada-rates-column-don-pittis-1.6286628

https://time.com/nextadvisor/mortgages/mortgage-prediction-2022/https://financialpost.com/moneywise-pro/no-relief-in-2022-experts-predictions-for-canadas-housing-market 

What else could impact the market in 2022?

There are a few unknowns that may have an impact on the GTA real estate market in 2022. Government intervention into the housing market is always a cause for concern and the mortgage stress test is also being revisited in 2022. In 2021 the housing market was front and centre during the federal election and it will be a defining issue in this year’s provincial election but regardless of the outcome, we’re not likely to see the effects of federal and provincial elections in the form of intervention in 2022. 

Covid-19 and the uncertainty surrounding the Omicron variant is also an unknown factor. Although if history is any sort of predictor COVID-19 should have little impact on the trend in real estate prices. Recall in 2020 when the CMHC predicted a 9-18% drop in housing prices at the beginning of the pandemic and since that time the market has been on fire with the average price for a home in Ontario increasing by 44% (CREA). In Durham Region, the average sold price of a detached home in December was $1.178MM and in Toronto $1.69MM. 

So, what’s the bottom line? If you’re planning on buying in 2022 a change to the mortgage stress test could impact what you can afford so getting out ahead of any changes could help. So far COVID-19 has not had a negative impact on real estate prices and we’re not seeing policy changes impacting housing yet, but these are factors to watch.

Sources: 

TRREB Market Watch December 2021

https://www.cbc.ca/news/business/crea-housing-november-1.628649https://www.bnnbloomberg.ca/cmhc-stands-by-forecast-for-sharp-price-drop-in-canada-1.1497129

https://www.cbc.ca/news/canada/toronto/ontario-housing-costs-home-prices-ndp-liberal-green-1.6284033 

Most experts agree that the GTA real estate market cannot continue on its current trajectory forever and feel 2022 should start off strong with similar sales numbers to 2021 yet they expect the market to slow as we move into the second half of the year and rising interest rates take effect. That may be true but don’t expect a reverse in pricing trends. As per Clayton Jarvis of Financial Post’s Moneywise column “People have been calling Canadian real estate’s upward trajectory ‘unsustainable’ for almost a decade now.” 

Sources: https://financialpost.com/moneywise-pro/no-relief-in-2022-experts-predictions-for-canadas-housing-market 

So, what’s the bottom line?

You decide what’s best for you. If you’re waiting for the perfect timing to make your move you could be waiting a while. The reality is that there is never a perfect time to move. It’s about what’s right for you and your goals for homeownership. If you’re thinking about making a move in 2022 your best bet is to speak to a Realtor® and get the lay of the land in your community. We can help you with 40+ combined years of experience helping people just like you buy and sell in the GTA. We can connect you with trusted lenders and support you through the process from start to finish.