Hi Y'all! – (in a Joanna Gaines, southern accent).
I was speaking with trusted mortgage agent, Tess Arpa with Excel Mortgage locally and she was asking me about the real estate market and what it's doing right now because she’s had a few clients come in with concerns that the real estate market is actually “crashing”. While she and I both know this is not the case, it has me thinking “What is everyone thinking about this market. "
Here is a brief Q&A I did with some general questions about the real estate market for the Cambridge Ontario area:
Q: What are you seeing right now in the market?
I'm seeing that buyers are able to take their time with making a decision on purchasing a home. There are not too many more properties on the market right now then there were last year BUT because they're sitting on the market longer, buyers are able to actually view a bunch of properties before making a concrete decision to compare and let a decision sink in. I'm also seeing that buyers are able to add in conditions or "contingencies" in their offers asking sellers for time to do a home inspection to make sure the home checks out and also time to properly secure financing. Some of the pressures are off.
I'm seeing with sellers that patience is still something we have to wrap our heads around. Because days on market is longer than it was last year, some Sellers are impatient and it can be stressful when it's not sold in the unrealistic time frame of one week. I'm seeing that sellers are willing to negotiate a little bit while still getting a deserved sale price.
Multiple offers still happening and some offers winning with conditions of finance and home inspection!
Q: Is the market up or down in comparison to last year.
While overall home prices are down from the year before, the average sale price for single-family homes is up 2.4% since 2017. Also the amount of sales currently vs 2017 are also up.
Q: What is the current average length of time a home sits on the market?
Approximately 30 days is the average day on Market. Below is a breakdown for price range:
Yes, multiple offers are still happening! And this is why I say that the market is still in great condition and that it's still balanced. While some houses are sitting longer with only one offer 30 days later, there are homes that still fly off the shelf!
Some properties are priced strategically lower to spark a bidding war. There are also some unique properties or a home in a neighbourhood or street that rarely comes for sale. Then you also those properties that have the “wow” factor that a lot of people are looking for. When these types are properties finally come available, you have no choice but to pounce on it and this usually creates a bidding war – it’s no secret, the majority of us know what value is and when a great property hits the market.
Now with that being said the bidding wars are not as outrageous as they were in 2017. So don't be frightened if you do find a property that you fall in love with and you find out your in competition. You can still win it by offering and fair price and maybe even with contingencies.
With all that being said, it’s still a great idea to be prepared when buying a home. Getting pre-approved is the first step, knowing what you can afford is all the difference. This makes the process so much easier because you are looking at homes within your affordability. (Imagine, the reason you haven’t moved forward is because all you’ve seen out there is nothing you could imagine yourself in but only to learn years later if only you would have been pre-approved you could have afforded so much more).
If you’re looking to purchase a home in the new year, get in touch with us! Tess can pre-approve you and prepare you for the steps ahead. Visit www.mortgageswithTess.ca
Tess Arpa, Mortgage Agent Excel Mortgage
Katie Kertesz, Sales Rep - Remax Twin City
If you're already set to go, then let's get started!
As always, if you have ANY questions about real estate like how much your home is worth or any general inquiries, please feel free to get in touch! Happy to help!