Spring may feel far away while there’s snow on the ground and frost on our window panes. But we’re about to enter a fast-paced real estate season in Canada, and spring is right around the corner. Whether you’re buying or selling this spring, here’s what you need to know to succeed in the current housing market.
What to expect from real estate this spring
Last year was full of surprises for the housing market. The unpredictable 2021 real estate market set record home sales by Thanksgiving day, and many cities in Canada surpassed the median million-dollar mark for homes. Our full market report offers a complete overview, but here’s what you need to know:
- We’re expecting a strong market in 2022, and the housing bubble doesn’t look like it’s bursting anytime soon.
- The first two quarters of 2022 expect heightened home prices, with bidding wars and competitive markets across Canada.
- As we can see from 2021 trends and a steady exodus from major cities, we’re amid a continuous rise in homebuying in smaller cities, towns, and rural spaces.
- We may see subtle price stagnation or correction in smaller or rural markets where infrastructure fundamentals cannot match the growth; employer bases, transit systems, and general infrastructure all influence these numbers.
“Hot price increases may relax a bit in 2022 because of an expected rise in interest rates. If these rates stay within a stress test range, we may see a stabilization in year over year growth –– but we won’t hit the bust of the real estate market cycle. If interest rates hit 1980s and 90s levels, we may have a problem because interest rates going up make it less affordable to buy a home.”
-Natalka Falcomer, President, OJO Home Canada.
What are the best practices for approaching a spring 2022 market?
Expect buyers to purchase earlier rather than later this spring due to the rising interest rates. That’s why it’s more important than ever to prepare for a spring market; you’ll want to be ready for fast, informed decisions as a buyer and multiple bids as a seller.
Are you preparing to buy a house in the spring homebuying season?
If you’re a buyer, get started early with preapproval or prequalification so you’re ready to make a clean offer when you find the right fit. You’re likely entering a seller’s market in most Canadian towns and cities, so clearly establish your needs and budget ceiling before you dive into a fast-paced bidding war or fall in love with a home that’s just a bit outside what you can afford.
- Homes will likely go fast this spring, so do your research to avoid emotional decision-making or panic buying. Carefully consider how much home you can afford and enter the market confidently using online tools with a knowledge of financial incentives and rebates that could help you secure the property you want.
- Establish your potential locations now. If you’re interested in a specific area, spend some time exploring the neighbourhood and getting to know local schools, businesses, and green spaces now. That way, you can feel confident in the area you’re choosing and focus your energies on making sure the home is right for you.
- Make a clear list of values, priorities, and must-haves for your home. You may need to move fast when you find a property you like, so coming back to this list allows for clarity throughout the homebuying process. Knowing your non-negotiables will help you and your real estate expert establish which homes could work for you.
Tips for selling your home this spring
Although you’re likely selling in a seller’s market in most Canadian towns and cities, preparations are important to maximize your sale price and ensure an efficient, successful sale. Beyond general advice on selling your home, here is some advice based on the current market conditions:
- Start early on any repairs, renovations, or upgrades you’re planning to make before you sell. Current supply chain issues and labour shortages can drag out timelines and make finding the materials you need difficult. Make a master list of everything you want to remedy before you hit the market, and get started right away on making changes. Even paint colours are in short supply, so thinking ahead will keep you from hitting surprise delays.
- Get set up early with a real estate professional who understands your local market and has their finger on the pulse of how it’s changing. Many Canadian cities have undergone considerable shifts in population and gentrification over the last few years, so get a clear sense of the market you’re in and highlight all the neighbourhood has to offer for buyers.
- Be prepared for a bidding war. Due to wariness and potentially rising interest rates, buyers will be buying early, and the market may be competitive. Price your home with this in mind.
- Take advantage of the lovely weather. Spring selling is great because the weather can be an easy sales wingman. Beyond home staging, think open windows, fresh flowers, and a beautifully painted front porch with comfy chairs to enjoy the sunset each day. Plan ahead when it comes to your outdoor space as well. When will you need to plant flowers or groom the lawn? Thawing snow and ice can cause flooding, so ensure you’re well-equipped to navigate whatever springtime throws your way.
Navigate the spring housing market with OJO.
This spring, feel confident in your home journey with a tailored search experience based on the features and details you care about most. Our comprehensive expertise helps you find a home that fits, and our online tools are a great way to compare your property to others if you’re selling. Start exploring today.