CURRENT MARKET UPDATE
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We are barreling towards the longest day of the year - where has the year gone?! Used to be that summer was slow in real estate, but the last 3 summers have been quite the opposite. Looks like we'll just truck through this summer again. More listings coming on stream giving buyers more choice and opportunity, yet still a strong seller's market, though perhaps not quite as frenetic in many areas.
Our two largest buying groups influencing the real estate market are Chinese buyers and Baby Boomers downsizing. The first group has traditionally bought in certain more central areas, but are now buying in many different locations - typically detached homes in residential neighborhoods, homes with views and acreages. Whereas, our Boomers are the game changers in the larger condominium & townhome market. Prices have increased significantly in this category over the past year.
Buyers appear to be doing the open house circuit in earnest rather than making an appointment and are making the assumption, often now erroneously, that they will have to pay over list price in order to purchase the home they are viewing. Tricky for buyers to know whether the asking price is a 'come on' to ensure multiple offers, or is a fair asking price set at the last comparable sale price. This is the moment the buyer needs her own designated agent to advise from experience. With escalation as we have experienced this year, there is a tendency for the greed factor to kick in and we are seeing the fall out from that right now as all homes do not sell in a week and many are hanging round quite a while.
We are also seeing a nasty tendency with banks to favor the new customer off the street, rather than their long standing customer when it comes to mortgage rates - the "posted rate" is not their most advantageous rate. Make sure you check the rates or use the free services of an experienced mortgage broker to give you the straight goods.
Whatever the season & whatever you are buying or selling, our team has you covered! We are always happy to talk to you. Enjoy the summer.
- Sheila and Michelle