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.
Residential 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%
Condo Sales
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!
Will COVID-19 effect real estate? In our opinion the simple answer is yes. We feel and have seen a slowing of the market. Buyers are not keen to go into other people’s homes, Royal LePage has cancelled and will not hold any open houses in the near future and sellers are thinking twice about listing their homes unless they have to.
This will create a situation of leveling out the market. We expect to see less multiple offers so prices may soften a bit. This is not all bad news. Buyers will have an easier time in buying a home at a more reasonable price and yet the value of homes is still high.
Recently we had two of the exact same model of homes for sale. The differences between the two were minor and in a normal marker should have sold for very close to the same price. The first home went on the market just before all the restrictions and closing were announced. That home received 6 offers and sold for $65,000 over asking. The second home went to market just as all the closings and restrictions were announced. That home received three offers and sold for $41,000 over asking, a difference of $24,000 for no obvious reason except for the change in the market in a two week period.
So, if you’re thinking of buying or selling we offer a bit of advice:
- Still a great time to sell with values still strong.
- Good time to buy with the market value of homes stabilizing and even falling a bit.
- Use online views of homes. Today there are great photos of most listing as well as virtual tours. These will give you an idea if a home is even worth visiting.
- If you are listing your home, use an agent that provides professional photos and tours. If you don’t, you’re putting the sale of your home in jeopardy.
- Be smart! If you’re selling your home have hand sanitizer available for visitors and wipe down surfaces such as light switches, banisters and door knobs with a disinfectant wipe of spray.
- Leave all lights on for a showing especially in the even and instruct your agent to tell other agents to leave all lights on and not to touch light switches or lamps.
- Make sure to go out for a walk or a drive when an appointment is scheduled so that you do not come in direct contact with potential buyers.
- Ask that showing agents let your agent know when a showing is finished so you can be informed and return home.
- If you are a buyer do not go to visit a home if you are ill or have just returned from a vacation. You’ll just have to wait and see what homes are on the market after you are clear of an illness or have finished a self quarantine.
LET’S ALL BE SAFE AND SMART! This pandemic will pass. It will take some time as the experts have said but being careful can not only save you from a severe illness but may save the life of others including your own family.
You can still buy and sell real estate. It will just be different and require a “SAFETY FIRST” attitude!
Stay well and stay safe.
Irwin & Mindi Hartman
It looks like we are into another seller’s market for 2020. The predictions are that the numbers will once again keep Ottawa in the Seller’s market range.
WHY?
There just isn’t enough housing to meet the demand! Even though builders are building at a fevered pace, they are, in many cases, a year or so away from delivering finished new homes. Plus there just isn’t enough home owners willing to or needing to put their homes up for sale.
WHAT’S THIS ALL MEAN FOR YOU?
It depends on were you fall in the real estate market. First time buyers are going to have to come up with excellent financing well before they can even attempt to bid on a home. They should also be prepared for bidding wars. It has not been unusual over the past couple of years to hear of ten, fifteen, twenty or more offers on the same home. And, in many cases, those homes are perfect for and marketed to first time buyers. Once we get into more luxury homes the demand as would be expected cools off but not that much. We still see many multiple offers on $600,000 to $900,000 homes.
If your buying and selling you have the goods and the bad. You’ll likely get much more for your home than you may have thought but you’ll also pay more for that new home and will have to deal with multiple bids. Again, get prepared. You may have to sell your home first and make a double move until your new home is ready or until you can find one that matches your needs.
The best scenario if for those moving to either a location that is not booming or leaving the housing market all together. Maybe you’re retiring and renting or moving to more affordable cities with a balanced or even buyer’s market. Under these circumstances you’ll reap the maximum benefit of this hot seller’s market.
What ever your circumstances are, a real estate professional can guide you though all the twists and turns in this crazy market. Write of call us today. Helping you is what we do!
Once again sales at the Ottawa Real Estate Board have exceeded last years sales and have shown significant increases in value, especially in the condo market.
A shortage of available condos have driven the market to new values helping what has traditionally been a week market in Ottawa. Lots of bidding wars, lots of buyers but a shortage of available units is the formula that has created this increase in sales and value.
The freehold market has also seen increases in the number of units sold and the values too. This market has become a little more balanced but remains a strong seller’s market.
What do you do if you’re in a seller’s market?
Well, that all depends on which end of the transaction you’re on. If you’re buying it is more important than ever to do your homework! Working with a professional real estate agent with lots of experience is your first step. A good sales rep should be able to guide you through the steps you’ll need to be prepared.
- A solid mortgage commitment from a lender. This will make sure you’re ready at a moments notice to put an offer in on that hot property. Get something in writing so you can prove, beyond doubt, that you are qualified.
- Have a building inspector on speed dial. Your sales rep should be able to provide referrals to several inspectors. Make your choice early in the process.
- Get yourself a lawyer who works with real estate transactions. You’ll need one for any transactions in Ontario.
- Be prepared to move fast in today’s market. Make sure you are available to be in constant contact with your agent. Cell phones, email and texting are all important tools when the pressure is on. Don’t head out on an African Safari in the middle of an offer to buy a home.
- Finally, be ready to break the rules. Putting an offer in without what has always been considered common and practical conditions such as financing and inspection may not get you the home you want. That’s why we have strongly recommended making sure your financing is in place and accurate. You may want to also consider, if time allows, to do a pre-offer building inspection. Yes, if you don’t get the home you will loose the cost of the inspection which today ranges from $500.00 to $800.00 but it may give you peace of mind.
These are just a few of the things to think about when you are getting ready to buy.
Selling in a Seller’s market?
- Don’t think that any home in any condition will sell. Prepare your home properly as if you were competing with many other homes.
- An experienced REALTOR® will help you read the market, set the right price and guide you through some of the strategy you can use in a seller’s market.
- Delaying offers until a specific date is a strategy that has been very effective in building interest in a home and creating multiple offers. BUT if must be done at the right time in the right market. As markets cool, this strategy can backfire and chase potential offers away.
- Know what your plans are for the future. Buying another home? Moving to a rental or to retirement living? You may now become a buyer so you’ll need a plan on where you are going.
There is a lot more to know when selling even in a hot market. If you’re thinking of buyer, selling or both, fell free to write or call and we’ll be happy to work with you to get to your end goals.
So far this has been an incredible year and the market in the Ottawa area just keeps on going. Even as the weather cools the real estate market continues to be hot, hot, hot!
Condos have been on fire for months now and buyers have got to move fast! For sale one day and sold within days. Town homes are another hot item. We don’t see too many good townhomes on the market for more than a few days before they are scooped up and are also selling considerably above asking price. Five, six, seven or more offers on a home is not unusually theses day.
Buyers are to say the least getting a bit frustrated with the process. Putting in offer after offer and not getting the home you want can really get under the skin of a buyer causing them to loose hope and sometimes their temper.
If you’re a buyer out their in this situation try to push through these disappointments. Many have just given up but if you need or want a home you have to be in the market to get a chance.
So, what do you do to give yourself the best chance? Here are some tips.
- GET PRE APPROVED FOR A MORTGAGE THROUGH A MORTGAGE BROKER OR BANK. Why am I shouting this? Because in a competitive market like it is now, you may loose to other offers that do not have a financing condition. So if you’ve done you homework and are pre approved you can try to offer on a home without a financing condition.
- Make sure you have your pre approval in writing. Savvy listing agents and their sellers will want to see proof that you can afford the home without having to put a financing condition in the offer. They will not just “take your word for it.” Look, they don’t know you. The seller has no idea if your honest or financially capable. Its not personal but when they have 4,5, 6 or more offers sitting in front of them, they want to make the right decision and if you can prove that you have your financing ready to go, that’s a big benefit to you.
- Consider a pre offer building inspection. Many sellers are not accepting offers for a few days after their home goes on the market. This has some benefit for you. It gives you a chance to arrange a building inspection before offering. This way you’ll know if there are any serious or just cosmetic issues with the home and judge if you; A) even want the home or B) can adjust your offer based on the work needed.
- Most importantly you need information. Only a real estate agent who has their finger on the pulse of the market can help you though this tricky market. So get yourself a seasoned professional. Ask friends, neighbours and relatives if they have used a real estate agent and whether or not they were happy with what that agent did.
Now you’re ready! You’re pre qualified, you are ready for a pre offer inspection. You can potentially make an offer without those two very important conditions and you have an agent helping you through the twists, turns, timing and pitfalls of a hot real estate market.
If you are interested in talking to us, please don’t hesitate to write, text or call. We have over 30 years each in the real estate industry and have seen hot markets, cold markets and level markets. We have our fingers on the pulse of Ottawa.
homesbyhartman@realtyagent.com. Call or text to 613-795-7982.
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