It has been an unbelievable year! There really was and is too much going on to make sense of it all. Pandemics, racial tensions, US CRAZY election, hurricanes, fires and conflicts around the world. It’s hard to stay level headed when times are so volatile.
This is one of the reasons we look forward to the Holiday Season. Christmas, New Years and Hanukkah! These holidays have one very important thing in common … FAMILY! Although each one celebrates a different event they all have family at their core.
Unfortunately, this year we should not be gathering in large numbers or with others, in order to help stem the tide of the COVID Pandemic. It is a hardship. It’s disappointing to not be able to get together as we have always done in the past. But let’s put things in perspective. IT WILL ONLY BE FOR ONE HOLIDAY SEASON if we all work together and keep our gatherings to just a few household members, wear our masks when out in public, washer or sanitize our hands before touching our faces and social distance whenever possible.
So, let’s respect and protect each other and make sure that next Holiday Season can be back to normal.
LEST WE FORGET.
It is the middle of October 2020 and we have once again realized an extraordinary real estate market! Many, many multiple offers, sale prices tens of thousands of dollars over asking price and most offers having no conditions whatsoever has been “normal” for most of the Spring and Summer market.
The big question always is, “Why is this happening?” There’s not one answer and a lot depend on location. Just outside of Ottawa in smaller towns and cities such as Arnprior, Smiths Falls, Perth and others, have all seen an increase in interest and value. The Corona pandemic has forced many people into working from home and have shown their employers that this method of working can be greatly beneficial to all. Many firms have decided to allow and even encourage their staff to continue to work from home either full time or for most of their working day. This has led to a surge in sale of properties that normally would be considered too far of a commute for work.
Within the city, the demand for house is still out stripping the supply although that seems to be changing right now. We are starting to see less and less listing coming on the market asking that offers be held off (no conveyance of offers) and starting to see less multiple offer situations. There are still plenty of multiple offers, but now we may see two or three offers on a property instead of eight to fifteen or more! This is somewhat expected as we move deeper and deeper into the Fall and approach the Winter months. Plus, a great deal of the demand has been satisfied. And there is a significant number of buyers who have just quit the mark out of frustration or affordability. It is still a buyers’ market and will remain so for the foreseeable future.
If you’re thinking of selling or buying, let us help you through today’s market which after over thirty years in the real estate business, has certainly been the most interesting and challenging!
Here we are. The beginning of June and deep into the COVID-19 Pandemic. The Ontario government has announced that restrictions as they are now will stay in place until at least the end of June.
For many people this is bad news. Workers in all industries and professions want to get back to work or as close to normal as possible. For real estate agents the statistics are not good. Residential sales are down 43% and condo sales are down 49% (May 2019 compared to May 2020). These numbers are showing improvement as the combined sales (condo and residential) were 55% lower in April compared to a decline of 49% in May.
There is a silver lining. Prices have increase from 2019. Condo sale prices were up by 15.5% and residential class properties were up 11.2% in May alone. Year to date, prices have increased 13.8% for condos and 17.8% for residential properties. The shortage of new listings and delays in building new homes have cause prices to rise. 2019’s market was supper competitive as almost every home saw multiple competing offers. 2020 has not been as competitive but we are still seeing many, many competing offers. We have heard of up to 20 offers on one home even in this market.
Our summary of the market is this. If you are buying a home, make sure all your ducks are in a row. Get a reputable experienced agent, have your lender pre-qualify you in advance. Be open and honest with both your agent and lender. Make sure they have all the facts so that there will be no surprises when it comes time to put an offer in with no financing condition. Take a good look at the home you are thinking of buying. There’s a reasonable chance you may have to skip a building inspection if you want a shot at that home particularly if you are competing with other buyers. A seller will take a lower offer if there are no conditions over a higher offer with conditions. Be confident that you have a little extra money put aside in case issues with the home do come up after you move in.
If your selling! Well, for the most part, you are in the driver’s seat. BUT the basics still pertain. Keep your home exceptionally clean especially in the COVID-19 era. Check and make sure all your maintenance items are up to date. If there is an issue with your home (furnace or central air not working, sink leaking, roof leaking) and you are aware of these or any defects, you are required to disclose these facts. If it can be proved that you knew or should have known about a defect, you could be held responsible for repairs even after transfer of ownership. Make sure you are readily available to your agent. Make sure you have good access to email as most transactions today are handled electronically due to COVID-19. If your home is for sale do not go camping or to a cottage with no or very poor internet or data connection. Offers and negotiations will be happening fast and furiously.
Need to talk to a pro? Call or write us and we’ll be happy to discuss today’s real estate reality. email@example.com or 613-825-9710 (home office)
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As many of us have, you are bombarded with news about the pandemic that is changing the world, at least temporarily. No much is staying the same and it certainly is business as usual in the real estate market.
Sales are down and there is no better way to show this to you that the March statistics below which compare March 2019 to March 202 week by week.(Ottawa Real Estate Board). What you see is the clear affect of COVID-19 on sales.
March 1-7: increase of 5%
March 8-14: increase of 43%
March 15-21: increase of 8%
March 22-28: decrease of 19%
March 29-31: decrease of 43%
March 1-7: increase of 41%
March 8-14: increase of 2%
March 15-21: increase of 9%
March 22-28: decrease of 36%
March 29-31: decrease of 51%
In our branch alone the number of showings has dropped dramatically from 168 showing of properties between March 15-21, 2020 and just 66 showings from March 22-28, 2020. This all points to a slowdown in the market driven only by the pandemic situation we find ourselves in.
And, you would think that prices are dropping like a stone. Well they are not in many cases. What the pandemic has done is created an even large shortage of homes for sale. Many potential sellers have decided not to move forward and wait till life comes back to normal. Builders can only finish homes that have already had their foundations poured. This will create long delays for many new home buyers. These buyers that have a home to sell will now delay getting their homes on the market. So you can quickly see why there will be a large shortage of available homes to purchase.
If your selling it actually can be a very good time, but we only recommend you go to market is you have to. Job transfer, financial issues or other life events may make selling now important. If that is the case the value of your may not have dropped at all and in fact may be worth a little more. In the last couple of weeks we have had a buyer who was in competition to purchase a home and paid a bit over asking. We then turned around and sold that persons home for $15,000 over asking in just 2 days with competing offers.
The buyers out there now are serious. Yes, the number of showings are way down but those buyers who are in the market are not just browsing or “kicking the tires”. They need a home and are ready to buy.
There are lots of thing we do to keep buyers, sellers and agents safe at this time. We can review all of that and much more if you are thinking of buying and selling. Just give us a call or write. We’re here to help!