Here we are just beginning Q2 and at this current moment in time, we’re fighting against the third wave of this pandemic. The real estate market continues to reach new heights as eager buyers and sellers are taking advantage of this beautiful springtime to find their next chapter to enjoy for the summertime.
A new slate of COVID-19 restrictions imposed by the Ontario government has numerous effects on many small businesses and also with activities for us all in our daily lives. For real estate, Sales and everything continue to be an essential service, however there is a limit on non-essential construction activities and a few new protocol changes, but this will not impact work on residential development or what’s happening in the resale market. Now more than ever we need a surplus of inventory so that more homes on the market means more options and therefore less competition for home buyers. The lack of inventory is the fuel to this fire andl many would-be sellers are now putting their plans on hold due to this 3rd wave. More homes for sale would result in more of a balance in the market, which could reduce bidding wars and could possibly bring a level of affordability to allow more people to enter the market.
Last year at this time, the real estate market slowed down dramatically. This year, you’ll see a more traditional second quarter. It isn’t fair to compare last year Q2 to this Q2 because the markets are incomparable.
Consider these facts:
- Average price of a home sold in Canada during March 2021 was $716,828, up
31.6 per cent from $544,824 the same time last year.
- The price of a home in the Hamilton-Burlington area is now averaging
over $872,000 as of March. Despite the high cost, sales numbers also
continue to climb.
- Despite the high cost, sales also continue to climb, up 63 per cent since March and up 73.1 per cent since the same month last year.
What does it mean to be a home buyer in the market right now?
Buyers, this is your time to take action and enter the real estate market knowing that soon you will have more options. The current listing numbers continue to increase which means buyers will have less competition when it comes to putting offers in on a home of their liking. So get Pre-Approved to know what you can afford, also to lock in your interest rate.
Currently, mortgage rates are still very low fluctuating around 2% and the mortgage qualifying rate of 4.79% which means that as of June 1, 2021 the mortgage qualifying rate will increase to 5.25% which will impact buyers when they are purchasing a home at or near their maximum approval amount.
What does it mean to be a home seller in the market right now?
With the spring housing market upon us and the vaccine rollout ramping up, it appears more homeowners are feeling comfortable listing their home which means a more competitive market for sellers. The market has slightly changed and what this means for sellers is that the previous trend of listing a home and then getting 20 plus offers creating a bidding war of sorts is no longer happening with each and every property. It is essential that buyers reevaluate their expectations. Working with a professional realtor, like one of us on The CRESI Team, who will advise you on the state of the market and confidently guide you through these unprecedented times. It’s our job to be the expert and list your home appropriately, as this will allow you to earn top dollar on your biggest investment.
What does it mean to be an investor in the market right now?
We know that home prices have gone up significantly which has in part been fuelled
by the pandemic, which has driven people out of places like Toronto and driven up prices in the areas they’re moving to. Living through this pandemic has really enhanced the value that we put on our homes and that being of a multi use living space to accommodate work and life along with the bonus of more space to a balanced lifestyle.
Understanding that this shift is happening and choosing to invest in properties in rural areas is a great option to include in your investment portfolio. Currently, the CRESI Development Group is investing a great deal of time and energy studying the growth, expansion and desire of specific rural communities where we have been successful finding properties that require head to toe renovations. Our team enjoys watching the transformation of older properties with history and character into large and modern living spaces on large lots for their new owners to enjoy for years to come.
No matter what you are searching for in real estate, smart consumers are always on the hunt for a deal whether it be a primary residence or investment property. A deal can only be found when the knowledge of the market and the value of properties is really understood. The CRESI Team has the resources and expertise to be able to educate our clients so they can make confident decisions with either the sell and/or buy of residential and investment properties.
