Predicting real estate trends can be a tricky thing, but there are so many things we can do to get a better idea of what the next year will look like. The Durham region has seen a wide variety of ups and downs in the past year, but many of them have given us a great idea of what next year will end up looking like. If you want to get a good idea of what the new home-buying trends will be like for the Durham region, keep reading.
A Look at the Real Estate Market for Durham Region: 2022
When it comes to predicting upcoming real estate trends, looking back on the following years is one of the best ways to do it. You can get quite a bit of information and combine it with what is happening in real-time to see whether things are going to get worse or better. Let's take a look at some of the stats for 2022 and see if these trends look to be continuing or changing completely.
2022 was a great year for the Durham area, but it is no comparison to the statistics from 2021. While the last year has shown a large decrease in home sales (about 33% between December 2021 and December 2022), it's hard to compare, as 2021 showed record numbers for the area. The drop in home sales is significant, but the numbers are not as drastic as they typically are.
The average price of a single-family home went down about 15% last year, and this is good news for 2023. The average home price is set to continue dropping with a large number of inventory (new homes being built and listed), but the drop will likely be very slow. Last year, many people were deterred from buying a home due to the rising mortgage rate, but now that it has leveled out a bit, more people will likely start their search for a new home.
A Look at the Real Estate Market for Durham Region: 2023
If you have been to the grocery store recently, then you have probably seen a sharp increase in the price of many household items. This widespread inflation will likely hit people hard for the next little while, and that means home sales are likely going to dip quite a bit as many people struggle to afford everyday necessities. Many people have been unable to start saving for a down payment, and others are afraid of being stuck with a high rate for their mortgage.
If you are thinking of selling your home in the Durham region, you might want to wait a bit until the inflation balances out with the average income. This might take a while, but it will be well worth it when you finally sell the home for a reasonable price. The market is currently a seller's market due to a large number of homes to sell, so take advantage of this great opportunity.
If you want to buy a home, you should take a break and wait it out until the winter months if you are looking to get a good deal. Last year, home prices were down significantly along with the total number of home sales, so you are likely to have less competition, and you could save yourself hundreds of thousands on your final purchase price.
2023 Homes Trends to Expect for the Durham Region
Single-family homes will likely continue to be one of the hottest sellers for the Durham area, and move-in ready homes will continue to dominate over fixer-uppers. The idea of a "starter home" has slowly disappeared, with so many people purchasing smaller single-family homes as their "forever home" now that mortgage rates have gotten so high. This means they expect something that meets their standards, and they want something that will work for their growing family instead of settling for something small.
Durham has some of the lowest home prices in the area, which is excellent for those who are considering moving from Toronto or any of the other larger metro cities in the area. These cities are notorious for having high real estate prices for smaller homes, and this has made many city dwellers consider smaller areas to live in.
Many jobs have also switched to fully remote or hybrid remote working, which means people are able to live in cities that are close to their former offices. This has made many suburbs popular with those who want to migrate out of the bigger cities, so these places could be good to consider if you are looking to purchase for real estate investing.
Rental Market in Durham Region: 2023
While we're on the topic of real estate investing, let's talk about the rental market. Rentals have started to become scarce in many suburbs, especially when it comes to houses. Rentals will likely go up in the next year or two, so you should consider investing in some multi-family buildings or apartment complexes if you want to make sure you have a steady income. Have a look at some of the ones that are already for sale and consider what upgrades you can make to turn them into desirable apartments.
Key Takeaways
Overall, the Durham region is likely to see some minor changes in the next year, but this could change at any time. There are many different things that could change the real estate prices, so you can't rely on the trends from last year, but they do give us a great idea of how things will likely shape up for 2023. This is a great year for investors that are looking to purchase some rental properties, and it's also an excellent year for those who want to sell their homes. This perfect pairing is a recipe for a higher number of sales from last year, and the decreased home prices will likely help contribute to much better sales.
As a Realtor®, it’s important that I undertake the detailed research that’s required to represent your home or help you find a new one. Everyone wants a smooth transaction! To ensure one, that includes advising accordingly, negotiating fiercely on your behalf, and empowering you with as much information as possible so you can make an informed decision about selling your home or condo, and buying the next perfect place.
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