If you or anyone you know has been thinking of buying or selling a home, you are probably wondering what home prices will look like next year.
If prices are going to increase, buying now and waiting to sell makes sense. If prices are going to decrease, selling now and waiting to buy is more logical.
As I always say, buying or selling a home is best timed based on when YOU want to move, but it’s still a good idea to be aware of which direction prices are headed to help make the best decision.
So, let’s explore some different home price projections for Canada, and specifically Ottawa, in 2022.
Every year, major housing industry entities release projections for the rise or fall of home prices in the following year.
Let’s examine what they are saying:
Canadian Real Estate Association – 5.6% projected price increase in 2022 for Canada as a whole
Moody’s – Slower, but continued increase in home prices in 2022
RBC – Expect price growth to flatten (not stop) in late 2022
But what do these projections really mean?
It means houses will continue to appreciate at a healthy rate, but just not as massively as they did over the past year, where we saw single-family home prices increase 16% over the last year.
At first glance, that might feel like the “market is falling” but 5.6% is still a significant amount when you think about pricing for homes in our area. According to the average projection of 5.6%, if a home is selling for $750,000 today, that same home will sell for $792,000 at the end of next year. That’s a difference of $45,000 in just one year.
That’s a lot of money!
As a seller, these kinds of projections might make you wonder whether it’s worth holding off on selling your home to take advantage of the price appreciation next year. Of course, it’s not guaranteed that your specific home will be worth more a year from now. Many factors go into how much a buyer is willing to pay for a home and future projections aren’t guaranteed. Even if the general market trend is higher prices like these forecasts suggest, you might still be able to get more for your house today than you would by waiting. I’d have to take a look at your home, where it’s located, who your most likely buyer is, and give you my best guess based on what’s happening in the market in your specific situation.
Regardless of what the projections say, the best time for you to sell your home is when you’re ready to do so. Ideally, we time it when it can get the most buyers possible, such as avoiding the holidays if you can, but even then homes are selling, just not for as much as other times of the year.
The best thing to do is reach out to me to schedule a time to talk. I’ll walk you through what’s happening in the market now and how to position your home properly for the best possible outcome based on your timing goals. We can talk about your life plans, personal financial situation, and more about how these projections may play out when it comes to your specific home.
As a buyer, projections of significant home price increases next year could make you feel like you need to buy now. Again, that might be the right choice for you. For one thing, these projections are just that, projections. Even experts cannot see into the future and guarantee what home prices will be. If only we had crystal balls!
Projections are useful for getting an idea of what prices may look like next year, but they aren’t the only things you should consider when deciding when to buy a home. There are so many other factors to consider such as your financial situation, the time of year, and even what your life plans look like over the next few years.
As soon as you start thinking about buying or selling a home, feel free to reach out. It’s never too early to examine everything and start coming up with a real estate plan that will work for you when the time is right. And, don’t worry, I won’t push you to move forward with buying or selling before you say “I’m ready!” All I want to do is get you prepared before you are ready to go so when the time is right everything goes perfectly.
Email me at Liisa@LiisaVexler.com when you want to talk more. I’m looking forward to hearing from you!
I'm Liisa and I love helping people moving to Ottawa make their home purchase and transition smooth and seamless. I also love helping sellers get the most for their Ottawa home. Let me know how I can help you make your real estate dreams come true.
613-898-1184 (call or text)