Paula Tysoski, Brant Area Realtor®
Call or Text 226-400-6458 today
Your Home Sold Guaranteed Team Brant
The housing market in 2021 and 2022 was a story of bidding wars and high prices, the 2023 market will depend on the timing and extent of policy decisions taken by governments in response to these economic conditions. When inflation continues to rise, governments take steps to ensure that the financial markets including the housing market remain stable. This could include measures such as increasing government subsidies for first-time buyers, providing tax incentives for landlords, or introducing regulations that limit rent increases. With careful management of these policies, the government hopes the housing market will stabilize in 2023 and beyond.
The demand for housing continues to increase, but the supply of housing remains an issue across the entire spectrum. This has been a major challenge for governments and housing agencies, as they struggle to meet the growing need for affordable homes. With rising prices and limited availability, finding a place to live is becoming increasingly difficult. As a result, there is an urgent need to address this issue and find ways to increase the supply of housing in order to meet the growing demand.
As cities become more and more crowded, it is becoming increasingly necessary to look for solutions that increase the number of units in existing residential areas. That’s where gentle density comes in. Gentle density refers to a strategy of increasing the number of units in existing residential areas without sacrificing the character and charm of these neighbourhoods. This strategy allows up to 3 residential units on most residential lots without the need to change the zoning. By utilizing gentle density strategies, cities can accommodate a growing population while preserving their unique character and charm.
Get a free list of Gentle Density suitable homes in Paris, Brant, Brantford and surrounding area here
The Bank of Canada has an important role to play in the real estate market in 2023. With the current economic conditions, it will be essential for them to adjust their policies to ensure that the rental market remains stable and that home ownership is still a viable option. Whether this means increasing or decreasing interest rates, providing incentives for buyers, or other measures, it is clear that the Bank of Canada will have a significant influence on how the real estate market plays out over the next few years.
The rental market in 2023 will largely depend on the Bank of Canada's ability to get inflation under control. Inflation has a direct impact on rental prices, as well as the cost of owning a home. As inflation increases, it becomes more expensive for landlords to maintain their properties and tenants find it difficult to afford the higher rent. On the other hand, if inflation is kept under control, rental prices may remain stable and ownership could become more attractive for potential buyers due to lower costs associated with purchasing a property. Ultimately, how quickly the Bank of Canada can get inflation under control will determine whether the rental market in 2023 is stronger, shifts back over into ownership or balances out.
The housing market is currently facing a unique situation - the path towards an economic recession does not coincide with a big rise in housing inventory. This is a very interesting phenomenon, as it has never been seen before. Many home owners who want to make a move are hesitant to list their home until they find the home they want to buy, this is the same problem home sellers have had for the past few years.
This is where services like our home hunter service are an absolute game changer for those looking for the right home, the inventory is not on the open market, it is right here in our database.
According to the Canadian Real Estate Association (CREA), the number of transactions through MLS Systems in Canada is expected to decrease by 0.5 per cent in 2023, compared to 2022. This would bring the total number of transactions to 495,858 by 2023. This forecast is based on data from CREA’s annual report and other sources, which provide a comprehensive overview of the housing market in Canada.
The housing market is expected to experience a 10.2 per cent increase in home sales across the country in 2024, as markets trend towards recovery. This would be an improvement from the current situation, but still below the previous peak of 2021 and 2022.
For now, there area great opportunities currently on the market, especially if you are upgrading to a more ideal home for your current lifestyle or taking advantage of the Gently Density concept as an investor. With the continued demand for homes, homeowners are still in an excellent position with many willing and able buyers waiting for their home to become available.
Find out what your home is worth in today’s rapidly changing market here.
Paula Tysoski, Brant Area Realtor®
Call or Text today to sell you home fast and for top dollar!
Your Home Sold Guaranteed Team Brant - Follow us on Socials here
Published March 2023