It has been a few months since I’ve posted anything. For good reason, I suppose. I am my writer, editor, and content manager, and the market has been busy! Key take-aways, interest rates have been creeping up steadily. Do you remember when we were getting as low as 1.29% for a four-year fixed mortgage this spring? Well, those days are gone; two deals closed last week at 2.5% and 2.6%, respectively. The Bank of Canada is further supposed to increase rates throughout next year.
Seasonally, we see sales slow down, and prices come down in the fall and winter. This fall felt like a spring market, listings coming up and selling within days—multiple offers on purchases over and over and over again. The typical price ranges were busy, between $200K and $500K. Surprisingly, the luxury market was hot as well. To see complete detailed statistics on how the market is doing, visit Liv Real Estates’ full blog HERE.
I can’t help but think of this time last year. There was a sentiment that after record sales and high prices that summer, that the spring and summer of 2021 were going to see a market correction, the number of deals and prices would plummet. I even had the equivalent of “chicken little” call me and tell me the sky was falling, and I better take a 50K haircut on a listing. The market did the opposite; the first six months of the year, sales and prices escalated to where they are now.
So, where are we now? Well-priced and well-cared-for homes are still selling quickly. But, as we see every year, homes that are priced too high, whose sellers may be stuck on price, whose homes maybe are a little rough around the edges, are sitting. Buyers are left trying to pick through the quirkier, hard-to-sell listings. Super frustrating for someone purchasing.
If I have a well-cared-for home with modest expectations for return, I am coming to market now rather than waiting for springtime. Higher interest rates should spell lower prices. I feel like there is an opportunity for a Seller to capitalize now, while there are less desirable listings to compete with and rates are lower than they are projected to be in the new year.
This blog could just be called “all about the rates” because if I’m buying, saving a full percent or two by purchasing now is likely worth it rather than being at the mercy of rising rates in the Spring and Summer months.
Chasing the Market Down
This phenomenon helps to explain how some homes are still for sale and did not sell throughout the busiest real estate sales period in years. (I want to say decades, but let’s be honest, I’ve only been doing this for seven or so years).
The idea is that a Seller lists too high, and anyone interested views the home and quickly moves on to a more valuable purchase. The overpriced home sits, and the longer it sits, CLICK HERE TO CONTINUE READING
Nanny-suites, In-Law-Suites, and Legal Suites
We sold a few suited homes over the last few weeks, so this is timely. We see this advertising all the time, Nanny-suite, In-Law-Suite, and Legal Suite, and most people I work with believe these terms represent the same thing. A home with a second home or a suite built into it for the sake of deriving income from a renter or renters, therefore increasing the property’s overall value.
This is true, but only in part. CLICK HERE TO CONTINUE READING
New Home Builders
After a 20-month run of new home sales, escalating prices, and the dissolution of homebuyer incentives, guess who has inventory again!? Home Builders! Since lockdown, new homes have been selling out fast! As soon as lockdown hit, I had one home builder say ( I’m paraphrasing) “as people weren’t comfortable in the resale market, show homes filled up, and consumers purchased seemingly everything in sight.” This change, hearing from builders again, being invited to lunches, and sending inventory spec sheets, is welcome. The new home market will be interesting this upcoming year. Prices are currently as high as they’ve ever been, interest rates are rising, and the cost of building material is coming down; couple that with rumors of oil and gas fuelling this upcoming year’s economy, the next twelve months should be interesting. The coldest months are typically the best times to get lower prices on builders’ existing inventory if you are considering new.
A Personal Note
I’ve never helped so many people buy and sell homes in such a short period, and most of you, I’d love to run into in the grocery store, haha. Thank you so much for your business, your warm referrals, and your support. It feels incredible for people to value what I provide in my business. Thank you!
As business has been better and our restrictions are rising, we’ve been able to socialize more and more often. I love to try new food and we had the chance to visit Khazana Downtown before an Oilers game. This place is wonderful. The menu was completely foreign, so I asked the server to order for us. They did not disappoint. I totally recommend it. For whatever reason, the restaurant was more or less empty before the game, there might be a gem here for you.
This year I am doing pie deliveries as Christmas presents; if you have bought and or sold with me in the last year, I will be doing deliveries on the 9th of December. If you have yet to RSVP, please do so I can add you to my route.