HOW IS THE MARKET NOW?
Well, this year has certainly been one for the books! The early part of the year was unlike anything I (and some more “seasoned” colleagues) have ever seen before. We thought the prices had reached their peak last year (at least in my local market of Southern Georgian Bay), but the early part of this year proved us wrong with savage bidding wars on pretty much anything that came onto the market.
While this was good news for people who were selling investment properties or their non-primary residences (aside from the Capital Gains implications), it was a mixed bag for those who had to buy their next homes, as they were paying a premium for that. Vacant lots were snapped up as people who couldn’t purchase the home they wanted, decided that they would build – but the price and availability of materials and tradespeople also became problematic due to demand and the impacts of Covid shutdowns.
The latter part of the summer has seen activity slow down somewhat. Prime properties (waterfronts) and those that are priced and presented properly are still selling quite quickly, but there are fewer multiple offer situations. Properties that are older and perhaps needing some TLC are staying on the market longer and are expiring or having price reductions, especially if the original list price is too optimistic. The only area that still seems a bit on the overheated side (in my humble opinion) is for mobile homes. Some of them are selling for prices that seem unduly high given that the actual “home” has a more rapid depreciation than a regular home and the land is leased rather than owned – but as always, it’s about supply and demand.
It is by no means a “buyers market” but fortunately there is now more opportunity for buyers to include due diligence clauses (home inspection, etc) and still have a successful outcome to their offer. This is good news for everyone. Unless a buyer has very deep pockets, unconditional offers are incredibly risky. I personally believe that allowing buyers to do their due diligence is also good for sellers. Giving the buyer the opportunity to do a thorough home inspection protects the seller as well, (as long as the seller hasn’t deliberately hidden a defect in their property or withheld relevant information) because it allows the buyer to make an informed choice and there is less likelihood of legal issues arising after closing.
With the loosening of Covid restrictions, the widespread adoption of vaccines, and the de-escalation of the real estate market (at least a bit), we can all breath a bit easier. And that is a very good thing.
Take care and remember that I am here when you are ready to make a move.
Laura