Current Challenges and Opportunities in the Real Estate Market

The real estate market continues to exhibit sluggishness, characterized by a decrease in property showings and diminished enthusiasm among prospective buyers. Presently, only serious and highly motivated buyers are actively engaging in property searches. Sellers, who were accustomed to a seller’s market marked by a robust influx of potential buyers and swift sales, now find themselves facing anxiety as only a limited number of interested parties show interest upon the initial listing of their properties. Achieving a successful sale in today’s market necessitates the establishment of a realistic pricing strategy and, potentially, a willingness to invest time in the process.

Income property sales have been adversely affected by elevated interest rates and the associated carrying costs. A scarcity of buyers willing or financially able to manage income properties under the current interest rate climate has led to a reduction in property values, with income properties now often selling at a discount. While rental rates remain relatively high and the rental market remains robust, these rates may not be sufficiently elevated to fully offset the burdensome carrying costs associated with income properties.

New Real Estate Reality

Younger people who want to get into the market are getting in out of town or buying condos. Demand for condos has risen as house prices have become unaffordable. Demand for homes further from the city have also increased and so have prices. As a result, our cities will change.  The change in demographics will affect infrastructure, commercial real estate, and businesses. The world is changing in so many ways. Adapting to a new reality will be critical.

Spring/Summer Market

We are in a lull for listings. It was a crazy spring. Many homes and condos were sold. We saw some big bidding wars for homes and some very high prices. The number of bids on properties seems to have gone down but the prices have really not. We are seeing some strong numbers come in on both houses and condos. As soon as we see more product (and we may just see more listings as pandemic settles), we anticipate a strong market to continue. Summer may be quite busy.

Will Spring Bring More Houses?

Will spring and warm weather bring more houses – will it be enough to satisfy the number of buyers in the market. A number of properties have come onto the market in the past couple of weeks. Some sold well over list in multiple offers but not every home achieved the multiple offer situation they were looking for and hence did not achieve the price they were looking for. Some relisted for a higher price. If a significant number of homes come on the market in the coming weeks we will see if the prices level. We think prices may flatten but don’t think they will come down.

Higher End Real Estate Market is Really Moving!

Higher end real estate market is really moving and prices are going up. There was a time when it wasn’t so easy and fast to sell a listing over $5 million. Now the process can be quick and these homes can attract multiple offers, selling for record prices. This is definitely a pandemic induced situation when the comforts of home are becoming so much more important. Costs of renovating continue to rise. What cost $50,000 a couple of years ago is now $75,000 – 50% more. That translates into $100s of thousands on a build. It’s tough to swallow but people are paying.

Busy Market!

The house and condo market is extremely busy with so many in multiple offers. We listed a house and a condo last week. In 4 days the house has received over 90 appointments. The condo is also very busy. Both are not taking offers until later this week. Sellers used to look at pre-emptive or bully offers but in the current market most aren’t looking at offers until the offer date. It’s just too busy and most times it pays off to wait. The frenzy is exhausting for buyers, sellers, and for agents. We expect it to be quite busy through this year. The pandemic has spurred a lot of movement and we aren’t done yet.

The Open Space Trend May Be Taking a Shift

The open space trend may be taking a shift. In the past few years open airy space was what everyone wanted. Now, with almost a year of pandemic behind us and the amount of time we have all spent at home, both working and family time, some privacy and walls may be needed. This shift in needs may be permanent and may affect how homes are designed. It’s quite amazing how quickly the world has changed and how we have needed to adapt with it.

February blues are even bluer this year.

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.

How you know when the real estate market is super-hot!

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.

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Happy new year to all!

Happy new year to all! I think this year many of us have reflected on the silver linings that the pandemic has given us. We are grateful for what we have. Sometimes it’s all about the little things. This winter our cauldron and pizza oven gave us much joy. I never knew that pizza in front of a fire in the winter could be so much fun.

I would also like to take this opportunity to thank all my clients and friends who have supported us through the pandemic. Our team has had a record year and I am grateful for that.

Here is to 2021 – may we transfer all that we have learned for a better year.

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