We have been living through a global pandemic for almost a year now and so much has changed! I am grateful for your engagements and conversations over the last 12 months. There have been times over this period that have been mentally, physically, and spiritually exhausting. Many of you, whether you have realized it or not have helped make this so worthwhile. Thank you!
The Real Estate Market has been moving right along at record pace and that continues. I was in at least one multiple offer situation everyday for weeks toward the end of February, the beginning of March. I have not seen anything like it. My areas of focus lately have been central south Edmonton, central west Edmonton, central Edmonton, and Sherwood Park. The market has been absolutely on fire. Look for yourself at Liv Real Estate Markets Statistics HERE.
Buyers and Sellers are asking what is going to happen to the market and what is going to happen to prices. My prediction coming into the spring was that prices would fall. Culturally, admitting you were wrong in our little corner of Canada is a bit taboo, academically, the best minds in economics are often divided 50/50 on the exact same subject. I am perfectly ok saying I was wrong and I’m not sure moving forward, ha ha. The most prevalent opinion I am hearing now is that global economies, like Canada, are going to create inflation with unprecedented stimulus packages and the price of everything will increase dramatically. So, naturally, people are buying fixed assets like real estate that they will appreciate. Watching buying behavior right now, I wonder if that is a bit of a self-fulfilling prophecy.
The Federal Government is trying to cool the market with interest rate increases. Five year fixed rates for high ratio mortgages went from 1.49%-1.69% over the last week. It kind of felt like spraying a bottle of Aquafina on a bushfire hoping to cool the blaze. For perspective, a coach we subscribe to in the States was excited about her booming market and rates being at 3.2%. She really had no idea. We are quite fortunate.
For Buyers: There are still value purchases out there. We’ve been able to capitalize on multiple occasions this month on Estate Sales, price reduced properties a little rough around the edges, and fire sale investment properties. We’ve had an advantage in the market by watching areas, knowing what we are looking for, and being willing to pay when the right opportunity comes up. We’ve been able to outmaneuver our competition.
For Sellers: For the first time in years Sellers have a foothold to negotiate in the market! A colleague said it best when he said list 1% over market value and you can still go into multiple offers. This does not sound like much, but for years most of us were letting our homes go for equal or lesser value than what we had just paid in years previous. This has been a bit of a silver lining.
Liv Real Estate has bought $10,000 of $100 gift cards to local restaurants to give away to people in our community. Just “like” Liv Real Estate on Facebook and Instagram and look for the posts, read the directions. Both friends and past clients have won, it is legit and a thoughtful way to give back to our community.
A listing we liked had an offer in place. We kept in touch with the listing agent. We got the sense that the other buyer was dragging their feet closing the deal. We asked the Seller to accept a back-up offer with us and they agreed. The first buyer continued to drag their feet and missed their condition deadline by 40 minutes. When a condition deadline is missed, the agreed upon contract has expired and is legally void. We had a back-up offer that became legally binding. Much to the surprise of the first buyer and their agent, their deal had died, and our deal was in place. Kudos to the listing agent for running an ethical ship! And congrats to our buyer who had his ducks in a row who was able to get financing approval and inspection completed in 4 business days.
Notable shoutouts to Solid Professionals performing above expectations over the last few weeks
Cheryl Shaw with Axiom Mortgage Solutions
Brendan Bella and Justin with Buyers Choice Home Inspections
Josh Jackson and Jennifer Preston with Murray & Stadnyk Law
Ryan Parker with Ryan Parker Photography
Chirag Mehta with True North Mortgages
I am keeping this one short and sweet, you know what they say, make hay while the sun shines. Thank you for your ongoing support, I look forward to hearing from a lot of you soon!