would you like to know come on real estate q and a you are in the right place so stay tuned
I am Koko Kenny I am a real estate agent in Fredericton New Brunswick between rising interest
rates the Covid 19 pandemic and the incoming spring market home buyers and the sellers
might feel slightly overwhelmed by all of the changes happening in the 2022 housing market
last year home inventory sank to its lowest levels ever recorded new bronze week is a no joke with
low inventory all the buyers are crying multiple offer is happening all over the place sometimes
a hundred thousand dollars over asking price but meanwhile the bank of Canada is preparing
to increase its overnight rate again what does it mean it means spelling potential changes for
new and existing mortgage holders with these trends in play it leaves a lot of
questions for those looking to make a move in real estate market in 2022. what are the factors that
cause the housing markets to react is it the economy covet 19 buyer behavior or combination
I think it's always a combination of multiple factors the difference right now is that they are
all seem to be pulling in the same direction which is why the market is so strong since the
Covid 19 pandemic began home buyers have south out of larger living spaces as working and schooling
from home remained common in some cases buyers have migrated to outer city communities or other
provinces in search of more affordable prices there are so many buyers from out of provinces
moving to New Brunswick seeking a bigger space and affordable housing price and living cost other
homeowners have chosen to stay put and renovate their homes rising inflation with the cost of
living looming interest rate increases heightened immigration targets and improving employment
rates all trends that could influence the market in 2022. the 2021 housing market was heightened
by record low supply pushing sold prices to new heights same thing happening in New Brunswick too
as soon as new list hit on the market it sold immediately even before hit on the market
it's already been sold it's crazy but it's a reality right now and the New Brunswick house saw
the price was 30 up since 2022 and 2021 which is a crazy I just did a market update for last seven
days last Monday and uh the average price sold in New Brunswick was 304 thousand dollars this
year CREA predict home sales will fall about 8.6 percent to 610 and 700 transactions although this
would still be the second best year on record for sales the urgency to buy a home base to rise out
the pandemic will continue to fade in 2022 having an impact on market competition so some of the
house was sold in 2020 and it's already back on the market 2022. I think what's going on is some
of the home owner who purchased the house out from the province decided to sell the stress test for
uninsured mortgages remains the same for now what are Canada's other current mortgage qualifications
that the buyers and the sellers should know about the stress test isn't just the interest rate
you have to qualify at you have to qualify at that rate along with having a minimum credit score
minimum down payment and the gross and the total debt service requirements those are the main
elements of the stress test it's not just the interest rate okay next inflation is expected
to be high in 2022 what impacts will this have on the housing market and the mortgage rates
this is a good question interest rates are going to rise in order to keep inflation under control
but the impact on the housing market will be muted by the stress test in new bronze with goods and
the food prices are going up especially meat and dairy like i said the other YouTube video New
Brunswick is still one of the lower cost living province but I see my own eyes prices are going up
since the onset of the Covid 19 pandemic in spring 2020 borrowers have been able to take advantage of
some of the lowest rates in history a peak for new home buyers and those looking to negotiate
their mortgage now the bank of Canada is looking to increase rates again carefully in line with
its inflation target of two percent although the bank of Canada did not raise its mortgage
in freighting overnight rate during its first 2020 policy rate announcement in January it seems like
the next rate hike could be coming in march and it did happen we have experienced low interest rate
for a couple of years and the money is so cheap so what's happening is investor is buying all the
apartments or properties for investing purpose but by the increasing rate some of the investors gonna
scare away because they are all about the numbers so here is a good news for the buyers we have
more chance to win the multiple offers real estate price has continued to rise how much higher could
they go in 2022 and what would it take for growth to level off this is a very good question too
housing prices are expected to continue to rise in 2022 the main reason is demand and supply
conditions are the tightest they have ever been as interest rates rise prices will likely start to
level off but we will likely measure that full impact in years rather than month
clinically low housing supply against the comparatively high demand was a recipe for rising
home prices in 2021. last year the national average home price was 713 thousand and 500
like i said previously last seven days in New Brunswick the average home price sold was around
340 thousand dollars so compared to nationwide new bronze week housing market is still very very
affordable in its updated housing market forecast published in December 2021 Canadian real estate
association predicted the national average will rise 7.6 percent annually to around seven hundred
thirty nine thousand and five hundred dollars in 2022 although price growth isn't expected to be as
extreme this year many of the factors that contribute to upward momentum are expected to
linger in 2022 such as ongoing home supply shortage by the end of December 2021 for instance
there were just 1.6 months of inventory nationwide okay next if I'm a buyer or a seller in 2022
what can I expect when the spring market comes around when does that period typically start
it's already started in New Brunswick a typical spring market in Canada usually starts in march
in 2021 it was February and if 2022 is anything like last year you may see a burst of new listings
in the spring but because overall stock of supply is so low and the demand is
so strong they will likely be global up very quickly the spring market is known as
one of the busiest time to buy and sell real estate and 2022 does not appear to be an exception
which I so agree on the heels of the tightest market conditions ever recorded in 2021
the upcoming spring market is expected to see little supply compared to buyer demand
some realtors anticipate affordability and the work from home movement will drive by your
motivations this spring like pushing purchasers to the outskirts of major urban areas which tend
to offer more space for fewer dollars those moving back to city areas due to reopening offices might
also influence the condo market this spring is their potential for traditionally smaller
markets to surge in 2022 due to people's mindsets and desires around housing chasing
this is a good question too to some extent that's already happened i see some houses
are on the market in 2020 it's already back on the market in 2022.
I guess peoples are moving back to the province the question is to what extent will that continue
in 2022 and to what extent will it reverse it's possible that the people could continue to move
out of cities while others start to return this would mean a lot of activity in real estate
market no one has a crystal ball I find because it's so unpredicted but the market
will correct itself it's a crazy seller's market I guess buyers market will come back
like mortgage rate it is now money is so cheap like I said but in 1996 to 1980 if you remember
the mortgage rate was you know highest was like close to 20 can you imagine anyway if you are
looking to buy or sell a home in 2022 consult the advice of the local realtor like me to get the
most up-to-date advice on all of your real estate questions and I will see you at the next video