I was a first time buyer and Motria helped me find the condo of my dreams. With the market being tough, I was worried I wouldn’t get what I wanted in terms of square footage, amenities, and location. Motria made sure that wasn’t the case. She was attentive, fast acting and gave me great advice along the way. Thank you so much, you made the experience a wonderful one!
February blues are even bluer this year.Market Updates
Everyone is getting tired – February blues are even bluer this year. Despite all that this real estate market is forging ahead. Buyers are clamouring over listings and bidding wars are rampant. People seem to be focused on better living space as they are home so much and there is nothing else to do. “The comforts of home” are the little joys that we have to look forward to. We have to remember that spring is around the corner and the pandemic WILL end.
My wife and I are pleased with the level of service and commitment that Motria provided. She helped us with both selling and buying our new home. She and her team were extremely helpful, open, transparent, and reliable through the whole process. We would definitely recommend Motria to anyone who is looking to buy or sell a home. Thank you!
Kudos to Motria and her team for impressing this tough customer. Effective communication is a key part of the real estate process and Motria manages this beautifully. You can trust Motria to guide you through either a purchase or sale with market insights and level-headed advice. I highly recommend working with Motria and her team.
How you know when the real estate market is super-hot!Market Updates
How you know when the real estate market is super-hot… A number of agents called us in the past week asking if we have any listings coming out in a few prime areas. One agent even said – tell your clients to name their price. When agents start calling it means they have super motivated clients and there is very little product available. That means that any house that is priced reasonably will probably attract multiple offers and one party is bound to bid high. That’s when prices start going up. It’s not to say that houses can be listed for unreasonable prices but If the number is substantially too high, it won’t sell. A number of homes that were listed last year and didn’t sell have sold early this year. Buyers are jumping high, but sellers don’t get too greedy.
Weaker condo market is starting to attract investorsMarket Updates
Weaker condo market is starting to attract investors. We are seeing an increase in activity in the somewhat pandemic battered condo market. Investors are starting to look for deals as cash strapped condo investors/owners are struggling to rent their condos. Many investors have opted to sell. Now we see a definite oversupply of condos on the market. TRREB reported “The number of new condominium apartment listings in Q3 2020 amounted to 17,613 – an 84.6 per cent increase over Q3 2019”. Ultimately, we think this should correct as the pandemic passes and we see more immigration start to come in. However, it may take time and not everyone has time.
Very low house supply starts off the yearMarket Updates
Very low house supply starts off the year. Historically listings start appearing in mid January after the holidays. This year the start is slower. Its a tough time for many who are stuck at home – the weather is cold, sunshine is rare and you can’t see friends and extended family. Motivation levels for many to do anything are low.
We believe that things will pick up. Vaccine is here, spring is coming. Market will pick up – we think demand will be high and supply will continue to be lower but there will be movement.
This will translate into higher prices. The first deals of the year are indicating that multiple offers on homes are very common. Buyers need to be very well prepared when bidding. Sellers may be pleasantly surprised at what they get for their homes. it will be busy…
Some housing predictions for 2021Market Updates
Some housing predictions for 2021. CIBC issued their weekly market update with some very interesting observations and predictions. The pandemic has resulted in job loss in the lower end of the job sector including services which is a major factor. The higher end job sector has for the most part not been impacted, people spent less hence they saved money plus interest rates are very low. They need and want more space and have created demand in the higher end market. On the other hand, the demand for less expensive houses is less due to economy. Hence in Toronto, the more expensive houses have escalated faster than the less expensive ones. So if you are a mover upper the house that you are buying is rising faster than your house. This will impact the trajectory for the market this year. Vancouver on the other hand which is heavily influenced by foreign investment in the more expensive houses has the reverse effect. This is shown in the graphs below.
In general the prediction is that real estate will be strong this year, particularly spring and moving forward. We are bracing for a busy year.
CIBC WEEKLY MARKET UPDATE & 2021 FORECAST – LIGHT AT THE END OF THE COVID TUNNEL Benjamin Tal Deputy Chief Economist, CIBC Capital Markets