what's going on in the current real estate market are we going to start to see the
shift in New Brunswick Canada I have gotten my honest opinion so stick around until the very
end and I will give you a bottom line advice as a buyer or a seller alright let's dive in
hi everyone I am Koko Kenny of Cherry Blossom Real Estate at eXp I am a real estate agent in
Fredericton New Brunswick in United States they are starting to see the shift so how that will
affect us here in New Brunswick Canada usually Canada follows after united states so first of all
what is going on with the home price and home sales nationally as far as housing prices goes
other than northwest territories there were zero province in Canada didn't see increase in their
home prices compared to 2021. we are seeing home value increases nationwide 2021 was the
hot market and 2022 again started like a fireball home sales have kicked off 2022 below 2021 levels
but the price growth has continued to set records why with a strong demand meeting end of month
inventory levels that are lower than they have ever seen actual monthly activity came in 16.3
percent below the all-time sales record set in march 2021 but the actual national average sale
price posted an 11.2 percent year-over-year gain in march and with ongoing supply crisis the other
main factor expected to impact the housing markets this year and the next will be higher interest
rates while discounted the five-year mortgage rates have already begun to rise a jump last
spring followed by steady upward trend since last October and are now back above pre-covet 19 levels
the bank of Canada has only just announced its first quarter point hike in early march analysts
surveyed by Bloomberg economics see the overnight rate ranging from 1.75 percent to
2.75 by the end of 2023 that said giving markets are currently pricing a 1.75 by the end of 2022
it is more likely to be the later that would make for nine bank of a Canada quarter point rate hikes
by the end of next year on the other hand we can't blame the national housing market entirely on
these interest rates year over year we are seeing even lower inventory levels than we did last year
last year was unprecedented and this year even more so and everyone is wondering are we in the
bubble is there going to be a housing market crash and I get it some of us are seeing a flashback
in 2007 what happened in united states but for housing market to crash large amount of supply
need to flood into the market driving prices down quickly we know that the inflation the rising cost
of living and the rising house prices have driven many people to take on more debt and a large
mortgages experts say the Canadians borrowed 193 billion over pandemic all that debt coupled with
increasing interest rates could make home owners to sell before having to renew their loans and
mortgages the fear is that this has the potential to lower prices quickly although this is possible
the chance that the interest rates will increase enough to induce a wave of home owners to sell
leading to market the crash seems unlikely banks already apply a stress test to ensure
people can meet their mortgage obligations rates would have to rise significantly
above 4.79 percent assumed in the stress test to induce such a situation the federal budget
has also implemented new policies to the housing crisis in Canada which will likely impact the
market in the way that prevents the housing crash with inflation on the right of course this is a
concern for everyone every area on the country i don't care where you live we simply can't afford
as much as we could last year for the same amount of money however despite the rising cost
everything to do with inflation Canadian real estate associations still predicting
the rising of home prices now here in Fredericton New Brunswick we are still seeing multiple offers
everywhere with very motivated buyers with well above asking price without many conditions
home buyers are well qualified financially and there are many people moving from out of New
Brunswick as well as the people here that need more space want to move into a bigger house or
they want to buy their very first home so we really don't see this kind of softing of the
housing market here in New Brunswick like some of the states in united states are experiencing now
it is as a strong seller's market in New Brunswick now but this hasn't happened
overnight it took us about seven to eight years to get to this point the average price of home
sold in march was a record three hundred fifty thousand and sixty hundred fifty five dollars
which was up by twenty four point eight percent from march 2021 and I think New Brunswick will
have a strong housing market for quite some time New Brunswick is a one of the top province
in Canada as far as low housing market and the low cost of living now people can work from home
they desire to move to New Brunswick so they can bring out of province income maybe they are moving
from a higher cost of living province and they can bring that income to New Brunswick which they
are making more than most people or they sold their house much higher so they can offer more
for the home here so what should you do to sell your home in 2022 in New Brunswick as I said we
are experienced low low inventory last year this year even more so along with higher buyer demand
you have a low inventory you are going to get the more likely well above your listing price if you
price your home correctly last year here in New Brunswick we saw about 30 appreciation rate year
over year and I will not surprise if we see something similar in 2022 so as a seller you are
still in a very advantageous position however I get it you can't just sell your home and go
nowhere so a lot of time you have to sell your home and then you are gonna be a buyer and you
are a little bit worried am I going to find a home to move into so this is one of your concerns just
realize that you are not alone however people are doing that every day so clearly there are
ways to do it you just really have to educate yourself it is really all about the perspective
yes you are buying a high but you are going to sell high as well additionally interest rates
are still advantageous for the buyers right now even though it is increasing a little bit
because if you compare these mortgage rates to say the interest rates on your credit card
or other loans this could be still a lot lower than that as for now interest rates are still
historically low do you remember around the 1970s to 1980 when interest rates are close to
20 percent so it is really all about perspective the interest rates are still low additionally if
you are worrying buying a house high just realize home prices are likely to rise for next few years
so this is still a good time to purchase a home if you are planning to move next couple of years
I recommend to just go ahead and plan it like i said lots of peoples are moving from out of
province and the most likely cost of housing price will increase what that mean if you decide to wait
you are probably going to end up paying more later on as a buyer to succeed in today's market
you just really need to be aware of all of the changes that going on understand the market
you are intended to buying could be a little bit different than we are seeing internationally
in the housing market and of course you want to have the right strategy to win in the seller's
market and you might want to do a normal things like waving as many contingencies
as you can coming the highest offer price that you can higher earnest deposit and of
course there are unique ways to get your offer won as well give this video a like and hit the
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to tell you about the life in the real estate in New Brunswick and I will see you at the next video