Buyers are finally seeing less constraining conditions to offer.
Good news in the market for buyers:
Finally we are seeing a little less tension in the market for buyers.
The last few months/years have been hyper-competitive for real estate buyers.
Although still a growing and competitive market, buyers are seeing a reduction in the hyperspeculative price conditions that have forced well-over-ask-offer situations.
Rates are still very low, and will allow a buyer to lock in an attractive five year mortgage, while avoiding losing their shirt on their next purchase.
Good news in the market for sellers:
Although the market has been very good, as concerns the decision to sell a property, this obviously did not help when time came to relocate into a new property. The market growth has been at such a brisk pace that after the sale of your current property, failure to immediately secure a new place meant you saw the price of your next property rise in a matter of weeks, or months.
With a more reasonable increase in prices, over time, this will allow sellers to sell for a good price and have more flexibility in their new purchase.
Fortunately price increases are normalizing, and we are not projected to have another year of intense growth; hyper-growth which could have, unabated, increased instability.
Prices across the board have been maintained this year, with a more moderate growth curve emerging, which should allow buyers to catch their breath and sellers to achieve their goal to sell at a good price still, and be able to find a new property more easily.
A word of caution for anyone considering renovations:
Temporary volatility in prices and availabilities of contractors, and especially of materials, has skyrocketed.
Key to realizing value right now, in existing properties, will be maintenance and cosmetic improvements, as structural improvements costs will mean it may be wise to carefully calculate the cost-benefit before undertaking major and materials-intensive improvements, for the immediate future.
Once supply chains, and speculative inflation on commodities and services stabilise, it will become more profitable to undertake such projects. This dynamic should play out as a wake behind the stability coming from normalizing market conditions.
It might just be that time again to sell, and buy a property more suitable to your changing needs, rather than wait to eventually renovate.
As always, your team at Mark-André Martel is available as a resource to assess your specific property and situation. Do not hesitate to reach out for a consultation.