As the fall market unfolds the reaction of sellers and buyers is quite interesting. Certain homes receive multiple offers and sell substantially over the asking/advertised price. Yet, others do not receive any offers and are placed back on the market at a different price.
What is going on? Well, the reality is that not all homes are equal or have the same appeal. Most importantly the area and location matter greatly. Two homes may be on the same block, but values can differ on each side.
Houses and even condos that are well-maintained or renovated and within an attractive neighborhood, receive more than 1 offer and sell fast. Do they sell for higher prices compared to the spring of 2022? Generally speaking No. Do they sell for significantly less? Again generally speaking, No. How is possible that the prices are holding on?
The answer is partly due to 70% of mortgage holders in Canada having a fixed rate. While 61% have a fixed-rate mortgage they secured within the past 2 years. As you realize this translates to a lot of people having 5-year fixed rates that are way lower than today’s rates. Also, these homeowners will not have to renew for another 3 years. This means the number of people that will “need to sell” is and will remain limited.
The dynamic in this real estate market is always fascinating. The conclusion is that sellers with reasonable prices and expectations will sell their homes and condos. As long they are promoted accordingly. Determined buyers will find opportunities and buy.
We are experiencing a more balanced market that can benefit everyone involved with the proper professional guidance.
#Remember to Say NAI/Yes to Life. Every Single Day.