Sales are expected to be slightly higher than usual for the remainder of the year as buyers are cramped into a shorter buying season. We saw a huge push of website activity in the last week of August first week of September followed by crickets over the last week. Typically, the time of year is slower as everyone is getting back from holidays and school kicks off. 100+ homes are selling a day right now.
The market for $200K-$500K single family detached homes remains steady. Multiple offers and bids is typical. I should note. buyers are looking for clean, well maintained, maintenance free appearing properties that are priced well. Sellers “testing” the market with higher prices, little to no staging, and poor photography are being punished. There are examples of gross over payments as buyers rush to market with rock bottom interest rates and participate in the market fervor, although the property has to appeal to the majority.
The apartment style condo market continues to amaze me. There is a lot of value to be had here, as good condo’s sit significantly underpriced. There is some risk with these as the price of insurance has driven condo fee’s upward. Although after a chat with those in the insurance industry, this spike in insurance cost is almost cyclical, we saw a similar spike in 2003. Hopefully, given time, this trend of increased premiums relaxes.
There is a lot of value in townhomes throughout the city. Condo fee’s are typically low for these zero maintenance living alternatives, prices are down, and well priced, well taken care of townhomes will move within a week.
I believe I tangibly closed a sale with the lowest interest rate I have ever seen. 1.89% on a five year fixed high ratio (5% down) mortgage. These are still available through ATB and the like.
RBC has a few cash back options for people looking to have some money in their pockets after their purchase for furniture and the like.
The price of lumber has skyrocketed and could affect home building costs in the future. I’m not sure if it will affect home prices as builders have become very clever in keeping other costs down. Furthermore, with the lead time on building being 5-12 months, prices may stabilize well before we feel it in the new home market.
There was a remarkable flip that sold in Laurier Heights. We went through when it was an Estate Sale and it sold within a day for 2K of list price or $397K. About six weeks later it sold for about 595K without coming to market by simply putting a sign on the lawn. There is a lot of discussion surrounding this as baby boomers leave their homes to their children and these homes are sold off to investors who in turn sell off renovated homes in desirable areas.
I have access to some new home evaluation tools. Through zoom, we are able to go through community sales on a detailed community map. We can surf in and out of active, sold, expired, and sold listings.
Personally, I am building a new website and social media platform to engage people like yourselves meaningfully. I feel like the market is saturated in fluffy marketing. (the amount of marketing that was sent to me once I started looking for property for myself was horrible, it took me a week to clean up my social media platforms). So, I’m building something different. Something personal, with lite and useful stuff.
What to expect moving forward?
Supply and demand will dictate how long this wave of sales goes for. Someone smarter than me suggested we will see this activity ride out to the new year. We may see the cost of new builds increase based on the price of lumber. Interest rates are not expected to go anywhere.
Logic would dictate that if everything remains equal, we will see a strong finish to the end of the year and a sluggish start to next year as demand dwindles.
Edit* RBC Dropped their 5 year high-ratio fixed rate to 1.79%
If you have any questions or comments, please reach out. I am happy to hear from you.