A STRONG HOUSING MARKET
Despite the global pandemic, sales records are being broken in the detached residential property segment within many markets across the nation.
Rather than a slowdown, we are continuing to experience a surprisingly robust real estate market. Experts estimate that these conditions are likely to last into the new year.
FEWER LISTINGS EQUALS A SELLERS’ MARKET
Inventory, meaning the number of homes for sale, is at a record low across the country. In fact it is at a 17 year low. If demand remains unchanged prices will continue to climb in this sellers’ market despite COVID-19.
Currently; bidding wars of properly priced listings are common between buyers due to the lack of inventory. The average price of a detached home sold on the Canadian Real Estate Association's (CREA’s) MLS service increased 17.5% over last year and continued home-price growth is anticipated for the remainder of 2020 and into 2021. It’s tempting to believe that homes will basically sell themselves in a market like this. But we’re still seeing properties that are overpriced sit unsold.
Time is of the essence in a sellers’ market. Buyers should get their financing in order and be pre-approved for a loan before they begin their home search. I can connect you with a trusted mortgage professional to get you started.
BUYERS BENEFIT FROM LOW MORTGAGE RATES
The average five-year fixed rate is now below 2% and interest rates are not expected to significantly rise throughout 2021. The time is now to determine a comfortable mortgage and make a plan to find your new home. I am here to answer your questions and offer sound advice to guide you through all the options that are available to you.
WHAT IT MEANS FOR HOMEOWNERS
If you’re locked into a higher fixed-rate mortgage for the next several years, you’re probably wondering if it’s a good idea to refinance. With those additional funds, you could pay off debt or even choose to invest in a second home. Contact me now for a referral to a trusted mortgage professional.
Housing needs are typically resolved by late summer and early fall to coincide with the commencement of the new school year. This year is proving to be different because the lockdown and continued uncertainty at the beginning of the year did delay what would have been 2020’s typical real estate schedule.
Household savings grew to 28.2% of household income during the pandemic. Statistics Canada states the country has not seen savings like this since the 1960’s. Homebuyers are now using that cash on real estate.
All this suggests that the housing market is in a strong position heading into the new year. It’s clear that consumers still consider real estate to be a good investment. The coming months should provide more clues about the market’s direction. Will low interest rates keep demand levels high? Will a pent-up demand for new listings continue, or will this demand cool off? What will homeowners do as mortgage deferrals end? Will more Canadian businesses fail due to COVID-19? Will government financial intervention continue?
I AM HERE TO GUIDE YOU
National real estate numbers can give us a pulse on the market, but real estate happens in our own backyard. I can help you understand the finer points of the market that impact sales and home values in right here in Nanaimo and surrounding areas.
If you’re considering buying or selling a Central Vancouver Island property before the new year or in early 2021, contact me now to schedule a free consultation. Together, we’ll develop an actionable plan to meet your real estate goals.