Demand from buyers remains high, and total listings remain low causing prices to continue to rise through November 2021. With 1,972 sales in November 2021, we finished with the second most sales for the month of November second only to last years 2,173 sales in November 2020.

On a positive note, November 2021 saw more than the 10-year average for new listings for the month of November, which is the first time we have seen this in several months. Unfortunately, November tends to be a relatively slow month meaning that the 10-year average of new listings is significantly lower than any of the previous months. Despite seeing higher than normal number of new listings, the total amount of listings is still significantly lower than the 10-year average; November 2021 finished with 2,604 active listings which is only 40% of the 10 year average of 6,354 listings available at the end of November. Once again, simple supply and demand rules explain what is happening with prices in the market.

Perhaps an even more shocking statistic is the fact that 92 out of every 100 homes available on the MLS in November 2021 were sold. A balanced market would be between 12-20 homes out of 100 listed. Basically, most homes that are listed in today’s market will sell, and most will sell quite quickly, giving buyers less time to decide and fewer homes to choose from. We are very much in a seller’s market currently and it does not appear to be changing any time soon.

If you are thinking of selling, we do have to think about the purchase of your next home as well. A common strategy that we are seeing in this market is that sellers will have everything ready to go to list their home, but will wait to list their home until they are able to get an accepted offer on their next home. The big problem with this strategy is the fact that most people will require the proceeds from the sale in order to get an approval on a mortgage, but if they are selling after the fact, they will not get a firm approval on the financing of their purchase and are taking on a very similar risk to buying subject free. I believe that it is irresponsible advice for a realtor to recommend writing subject free to their buyers, however, in my observations over the last year, it seems to be very common advice from many buyer’s agents. I will happily write a subject free offer for my clients if it is my client’s choice to do so, but I will never recommend it. This can make things very difficult for buyers, as they would like the protection and opportunity for due diligence that subjects will provide, but in order to compete with other offers that are coming in subject free, the only chance these buyers have is to write subject free offers themselves, or offer a much higher price.

If you are just going to sell your home and not make a purchase, now is likely the easiest time you will have to sell your home very quickly for more money than ever before.

Buyers, unfortunately I don’t have a lot of good news for you. I think that today’s prices are likely the lowest they will be going into the future (I hope I am wrong on this, but I truly believe that we will continue to see prices rise). With a lower than desirable number of homes available, multiple offers on most properties, and competing with subject free offers, it is not exactly the optimal time to purchase, but as I said, prices are still on the rise so I would not recommend waiting for the chaos to be over as prices will likely be much higher by the time we see things slow down.

Overall, it is a tricky, but potentially lucrative market to navigate currently, and everyone’s situation is unique. If you are thinking about making a move sometime in the near future, be sure to get in touch so that we can start making a plan together to make things go as smoothly as possible when the time is right for you.