May 2022

The housing market all across Canada appears to be cooling down. This is according to the Canadian Real Estate Association’s latest statistics. April 2022 saw a 12.6 percent drop in home sales all across the country compared to March 2022. Not only has sales declined, but the average price of homes has also dropped. 

As we see the market change slowly into a buyer’s market, many are excited, and some who were considering listing their homes may even now start reconsidering. We think the best decision for everyone on the scene right now is to consider their personal needs more than the market conditions. 

Trying to time the market is very risky, since nobody knows where the market will be a couple weeks from now. The decision to sell or buy a home is to be approached on a case by case basis, taking into consideration the needs of the seller or buyer. The decision really should be a personal one. 

What This Means for Sellers 

When there is less activity on the market, it is harder for sellers to set their properties apart. They will face more pressure to stage and make homes stand out more so they can sell. And also have to invest in cleaning and maintenance to keep a home up to par while still on the market. 

Potential buyers often decide within the first 30 seconds of entering a home whether it is a contender or not. So sellers have to make a big impression, and an even bigger one when in a buyer’s market. When a potential buyer sees a home in good condition that is well taken care of, their perceived value is higher. 

For sellers in this market, they will have to go back to promoting homes for longer times before selling. This means more posting on social media and having high quality photos to help seal the deal. For buyers, the dream of owning a home is looking a lot more tangible now too. We hope the market stays this way, at least for a while, so people can get back on their feet and find their homes. 

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Experts in the real estate market are calling for more supply to help quell the rising prices of homes. This is happening all across Canada, and interest rates are rising, showing us that the market is cooling off. But even so, we are seeing more and more people with a lost hope of owning a home. There are some that don’t even see changing their rental situation in the near future. 

And this is not just Canadians that are in the low income bracket. Persons making “a good income”, even those who have money saved up for a down-payment are finding it hard to afford homes in their communities. More people are living with parents and hoping to purchase homes, but the dwindling list of available homes is getting worse and worse as the days go by. After all, when you move, you will have more than a mortgage to pay. There will also be other living expenses, and current inflation levels are so high, so is the cost of living. 

Many people have downsized their house wish list to fit owning a home into your budget, and it is still not enough. 

Why is the Market so Hot? 

It’s all due to the lack of supply, says economists, politicians and advocates, but others like us here at SilverBeam Homes believe it is the lack of affordable housing that is preventing people from making the step into homeownership. This is actually pushing people out of the market as they get pre-approved and see what they can really afford. It is sad, because a place to live/sheltered is a basic human right. Sadly, many have been outpriced out of the housing market. 

Affordability and 30% Pre-Tax Income

The CMHC – Canada Mortgage and Housing Corporation defines affordable housing as being less than 30% of an individual’s pre-tax income. This doesn’t just refer to home ownership, though, it also refers to market-rate rentals and subsidized housing as well. 

The median pre-tax household income in 2020 was $55,700. This would make an affordable housing option slightly under $1,400 per month. Many people, even in double income households, think it will be well into their 40’s before they can afford a nice home, or even a good enough one. For many, the only way they may be able to afford a home is to move out of the country, or so many people think. But what if we told you you had another option?

Building a Home 

Here at SilverBeam Homes, we can help you make your dream of owning a home a reality. Choose us to build you a more affordable house, and also a custom built house with the features and amenities that will meet your specific needs. If you feel like the current housing market is simply not meeting your needs, we may be able to help you. Housing is essential, and we can help you achieve your goals to own a home. 

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