North Americans, Canadians, and Ontarians have had quite a lot thrown at us over the past 15 months. On the *hopeful* end of our 3rd lockdown and coming out of one of the craziest Spring Markets Hamilton has ever seen the big question on many of our minds is ‘What happens next?’
With rumours and suspicions of a shift approaching Buyers and Sellers are nervously watching this very active market. Is it still the right time? Did I miss my chance? Should I hold off on listing? On buying? On investing? Uncertainty can be one of the scariest obstacles we face and it’s only natural we look to our experts for guidance.
As a Top Producer and an active Listing and Selling Agent I’ve witnessed firsthand the ups and downs of this whirlwind Real Estate market that we’ve been navigating through for the entirety of 2021 thus far. And here is what I can tell you:
Is a shift coming? To some degree yes. Certain pockets will be hit ‘harder’ than others. Areas such as Dundas that have been at an all-time low inventory, even now, likely won’t feel the effects of a shift as heavily as other locales like Hamilton Centre in which there has been a surplus of new listings over the past 30-60 days.
It brings us back to the old supply and demand cycle. In areas like Dundas, the demand is still high and the supply is still low. Selling prices continue at a premium because the average Buyer is amongst a pool of other Buyers vying for a smaller selection of homes.
In areas like Hamilton Centre or Hamilton Mountain the supply has gone up resulting in a decrease in demand. Buyers are now starting to purchase more objectively as they have a bigger selection to choose from.
Weekly we are starting to see price INCREASES and a less listings ‘selling over asking’. Homes that were underpriced are often no longer going into multiple offer scenarios and are now amending their Listing Prices to reflect more of an objective or realistic market value.
For our Sellers:
Strategy and proper pricing is KEY. And I cannot stress this enough. Even in regions where inventory is still low and demand is still high, proper marketing and pricing has NEVER been more important. Understanding YOUR market, understanding YOUR home, and partnering with an experienced Agent is crucial now more than ever.
For our Buyers:
In some neighbourhoods you still have to bring your “ A-Game” to the table and hope for the best. But now in more and more areas of Hamilton, you just might get more bang for your buck. Without the pressure of putting in an offer in competition conditions are starting to pop back into play – Home Inspections, Financing, Solicitor’s Review; things that Buyers don’t have the luxury of adding to an offer when they’re in a multiple offer situation.
For our Sellers AND our Buyers:
Establish your real estate goals. Understand why you’re purchasing or why you’re selling.
If you’re a Buyer looking for a ‘forever’ home, paying a subjective price (without over-extending) may just work itself out in the long run. While purchasing is an investment do not lose sight of the fact that you are buying a home – and there is value in that. By caring for and nurturing your home, your investment will grow and appreciate.
However, if you’re an investor looking for an income property you may need to think a little more objectively and proceed with a more measured amount of caution.
If you’re a Seller, remember that houses can’t be priced subjectively. When a house sells in a multiple offer situation, the general public only sees the accepted selling price, the top offer. What they don’t see are the offers in between. Careful thought and consideration has to be put into EVERY listing.
As an active Listing Agent I see the range of offers that come in on a property from top to bottom. The reality is that the majority of the offers are closer to the asking price. But then you get that one or maybe two Buyers that REALLY want it. Their subjective value outweighs that of their competition and they win the sale. All it takes is that one Buyer to drive the price.
And as if things weren’t wild and unpredictable enough already, the new mortgage stress test comes into play. Recently announced there will be new criteria put in place for the approval of both insured and uninsured mortgages. This new stress test will impact any deals written from June 1st and beyond.
How will this affect our Buyers?
It’s going to hit the first-time homebuyers the hardest. Those that are already struggling to navigate through the influx in prices and lack of inventory…
Sorry for the long post, there is so much to cover… I am always available for a phone call. I love to chat about this dynamic market.
– Reach out anytime.