Finally, a beautiful sunny day with seasonable temperatures has arrived. The cool weather, gloomy skies and rain haven’t helped the spring real estate market.
Some analysts feel a recession is possible, but recent positive unemployment numbers and continued control of interest rates should temper any long-term economic pull back.
There are several reports that mortgage debt held by institutional lenders has reached a new high. The outstanding balance peaked at 1.56 trillion in April, up 0.17% from the month before. This represents an increase of 3.2% from last year.
New home builders have been slashing prices and, offering substantial incentives to entice buyers. The condo market sales have been relatively good in the Toronto with cost of ownership outstripping rental income.
On the positive side, townhomes and some single detached homes have been subject to multiple offers. The higher interest rates, and strict mortgage rules have impacted on purchasing power taking some buyers out of the market.
I learned early in my career that the real estate market is not static, but constantly changes along with internal and external environmental conditions. Like the equities market, real estate prices can change over night depending on many factors that influence supply and demand. I believe that the late spring and pending federal election are just two of the many reasons we are seeing downward pressure on prices particularly in the 905 Region.
The real estate market can change monthly, quarterly, and yearly. The historical real estate frenzy has left many consumers with unrealistic expectations of inflated selling prices and short selling times. Looking at the relevant data assists in determining a price point, buy ultimately market value is determined in the traditional manner of exposing a property for a reasonable time at a realistic price. Failing to market in this manner may leave a listing to languish on the market, while surrounding comparable properties sell quickly at slightly lower price points. This set of circumstances may stigmatize the property leaving potential buyers wondering what is wrong with a slow-moving listing,
Market forces have shifted from a Sellers to a Buyers market and, it’s very important to ensure your home is positioned competitively. To accomplish this goal, list your property at an appropriate price, be cooperative by allowing all showing requests and be patient so that your home can be exposed to as many potential buyers as possible. By following these few tips, you will get an idea of how well the home is priced by requesting feedback from people that have viewed your home. Selling your home is an emotional process and you should never be insulted that others do not readily see the value that you feel exists in your home
I wrote this blog over the course of a few days, the weather has gifted us a string of beautiful, warm and sunny days and the Raptors are enjoying playoff success lifting spirits. This injection of positivity has also boosted interest and activity in the real estate market.