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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.
Viewing new homes on the market, especially in the hot market we are seeing today, can be a very exciting. fast, and bewildering. You see a home and you fall in love with some of its main features. Your excitement level is high and before you know it your in the middle of making an offer! The pitfall to all this speed and excitement is that if you haven’t taken the time to consider all the details, you may find the upon a closer look, the home does not meet all your needs. This can have disastrous consequences!
In today’s fast paced market, you may have to act quickly when you find a property that meets your needs. Just need to make sure that the home really the right one for you and that you’re not being completely influenced by first impressions.
When you’re viewing a potential new home, or checking out a property during a public open house, yop should look for things beyond the paint and decor.
Here are some tips on what to look for:
- Will the property require a lot of immediate repairs, upgrades or renovations?
- Is it in an area that supports your family’s needs and activities. (Parks, schools, public transport, access to roads and highways, community facilities such as sports facilities, hockey rinks and swimming pools and shopping?)
- Is the property big enough?(Play structures, future pool)
- Is the driveway and garage space suitable for your needs?
- Will your furniture fit the space of each room or will you have to look at changing pieces?
- Are there enough bedrooms, bathrooms, closets and storage space? (Think about your current AND future needs.)
Avoid focusing in on only the major features of a home, such as the large kitchen or large living room.. Get down to the smaller details. This is a major purchase and you want to get it right!
Ottawa is having one of the hottest real estate markets we can remember and we’ve been selling real estate for over 30 years! Everyone wants to know what’s causing this, how can I take advantage and when will it end!
None of the answers to that are easy or very predictable. A new government in Ontario, Alberta provincial election and a federal election are just around the corner. Plus the ongoing tug of war over trade with the U.S. can individually and in combination make significant changes to a real estate market.
But Ottawa is somewhat insulated. There are two major economic forces here. Public service and high tech. For the foreseeable future (unless a new federal government launches major cuts) Ottawa will remain very stable and this is part of the reason Ottawa’s market has always been a good. Almost no declines in value and steady although too slow for some, growth. But with prices in other major cities out of sight high, (Toronto and Vancouver just to name two) Ottawa has become very attractive to those who can be mobile either due to retirement or job opportunity. Won’t you rather be in a city where $500,000 – $600,000 could get you a nice single family home in a good neighbourhood or in a city where the same dollars gets you a rundown fixer upper in a not so great areas.
Sure, Toronto has it all, Broadway theaters, concerts from all the big names in music, Film festivals, aquariums and more. But that doesn’t address the day to day living that an affordable city and very well serviced city like Ottawa has to offer.
On top of an influx of movement to Ottawa there is a housing shortage here. New home builders can’t keep up. I the “good old days” you could walk into a builder an have a home built and ready to move into in 90-120 days. Now you’re looking as 10-12 months.
With a hot market some potential sellers are holding back as they are scared that they will sell their homes and have no place affordable to go. So it goes round and round and round. Not enough homes to buy? Let’s stay where we are. Therefore that house is not for sale and buyers can’t find enough homes.
In the past few moths we have sold seven of our listings within a week and that counts days that we did not accept offers. In fact, all of them sold on the first day offers would be looked at. And all of them sold above asking prices. Some only a few thousand dollars and others as much as $30,000.00.
So, the good: If you’re selling, values are high, homes are selling quickly and for top dollar. All that being said, we are still finding homes that are not in good condition or poorly marketed, not selling at all.
The Bad: Exactly the opposite of the above for buyers. To get a chance at a good home you MUST get your pre-approval at a lender ASAP. Be prepared to either spend $500-$600 for a pre-offer inspection (if you even get a chance to do that) or risk going in with no inspection condition.
The Ugly: When a market is unbalanced in favour of either the seller or the buyer, there are always hurt feelings, finger pointing, loss of funds and disappointment on one side or the other. Right now it’s a seller’s market so we are seeing many buyers and their agents upset and angry. “Why didn’t we get that house? We offered more money but the other buyer got it. How come we can’t know what the other buyer is offering? We could have then beat it!”
These are the realities of real estate in Ottawa today. What you need is a representative who can guide you though this. Is their a representative out there that can guarantee to get you the home you want? NO! There are too many factors and people involved to make that kind of claim. What we can promise it that we’ll give you the straight facts. No fantastic promises. Just the facts and how to best navigate the market!
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