I just thought I would update everyone on what I see going on... especially in Durham Region. It would appear that everyone who wanted to sell their home, waited until after Easter weekend and it seems that the we are now saturated with listings.
By looking at the listings and the sold listings it would appear the ratio is about 10:1... meaning for every 10 homes listed, ONE home sells within a week. Is this bad? Not necessarily. This just has not been the norm for so long that people are panicking.
Let's not panic. The Buyers now have great opportunity to purchase homes without the bidding wars and without paying crazy over asking prices. They may even be able to get a home inspection. Those days were unheard of a few months ago.. hell, even a few weeks ago.
But it has definitely shifted and Realtors need to face the reality that the Sellers are no longer in the driving seat.....The BUYERS are... but many of the buyers were frustrated and didn't want to play anymore and have retreated. It is time to revive those buyers because opportunity is knocking right now. There are some sellers who are just hoping to cash in while the prices were at an all time high, and it is pretty safe to say, I think they may be a few weeks to late. But there are also sellers out there who have bought in March and early April and MUST sell their home in order to close on the purchase. This is where things get tricky.
Do they have options? There are always options. If you are in that position, you need to stay in close contact with your Realtor and get sound advice. It isn't as easy as saying "keep my deposit". If you think that, you are mistaken. If you bought firm, you signed a legal contract. If you are nearing your closing date, you need to discuss your options.... extend your closing to give you more time, if possible. See if the Seller you bought from will take back a mortgage for you, if not, call on family to help you come up with funds to close the deal or speak to a mortgage broker about private funds. But DO SOMETHING... don't wait until the 9th hour... nothing can be done a day before closing. Deal with it sooner rather than later.
I was one of those people that bought in 1989 and my back up property didn't sell and what a nerve wrecking time it was. I speak from experience. Work with a Realtor that knows what they are doing. I didn't and it took me years to recover from poor representation. Have a plan of action.. what if... ask questions.
People that think they just lose their deposit are dreaming... that rarely is all they lose. So be informed. But if you are a buyer out there, the market is your playground right now. With the market full of listings, you are able to shop til you drop. What are you waiting for? There are deals out there to be had. You just need to find them. I think this summer is going to be a great time to capitalize on some great deals.
Just know - the market is quiet. You may have noticed all the "FOR SALE" signs out there and the SOLD riders are not going up like they used to. This is becoming more balanced. Agents can now really negotiate on your behalf. If you have older children living at home, this may be the time for them to grab something. There are homes out there selling for UNDER asking now.
Homes are being listed at the price they are expected to get and not silly under value prices and encouraging bidding wars. Those days are slowly disappearing. This is good news for buyers.
On top of all the uncertainty, we are also seeing some Buyer Remorse out there. Buyers who haven't closed yet on their deals and now seeing all the choice out there are feeling they overpaid. This is always going to happen if you are caught when the market is shifting. Timing is everything and no one has a crystal ball. All I can say to that is, I am sure in 10 years from now, you won't regret your purchase because real estate is one thing, if you buy it and hold it long enough, you will NEVER lose. So hold on to your hats and get ready for a wild ride.
If you are looking to purchase a home or sell a home, work with someone you trust and is working in your best interest. This too shall pass but for now, it is definitely been a fast turnaround. Scary for some and opportunity for others.
Keeping it real in real estate !
Your friend
Michelle Makos
Broker/Manager - Royal Heritage Realty Ltd.,
Direct: 416-300-3004
By looking at the listings and the sold listings it would appear the ratio is about 10:1... meaning for every 10 homes listed, ONE home sells within a week. Is this bad? Not necessarily. This just has not been the norm for so long that people are panicking.
Let's not panic. The Buyers now have great opportunity to purchase homes without the bidding wars and without paying crazy over asking prices. They may even be able to get a home inspection. Those days were unheard of a few months ago.. hell, even a few weeks ago.
But it has definitely shifted and Realtors need to face the reality that the Sellers are no longer in the driving seat.....The BUYERS are... but many of the buyers were frustrated and didn't want to play anymore and have retreated. It is time to revive those buyers because opportunity is knocking right now. There are some sellers who are just hoping to cash in while the prices were at an all time high, and it is pretty safe to say, I think they may be a few weeks to late. But there are also sellers out there who have bought in March and early April and MUST sell their home in order to close on the purchase. This is where things get tricky.
Do they have options? There are always options. If you are in that position, you need to stay in close contact with your Realtor and get sound advice. It isn't as easy as saying "keep my deposit". If you think that, you are mistaken. If you bought firm, you signed a legal contract. If you are nearing your closing date, you need to discuss your options.... extend your closing to give you more time, if possible. See if the Seller you bought from will take back a mortgage for you, if not, call on family to help you come up with funds to close the deal or speak to a mortgage broker about private funds. But DO SOMETHING... don't wait until the 9th hour... nothing can be done a day before closing. Deal with it sooner rather than later.
I was one of those people that bought in 1989 and my back up property didn't sell and what a nerve wrecking time it was. I speak from experience. Work with a Realtor that knows what they are doing. I didn't and it took me years to recover from poor representation. Have a plan of action.. what if... ask questions.
People that think they just lose their deposit are dreaming... that rarely is all they lose. So be informed. But if you are a buyer out there, the market is your playground right now. With the market full of listings, you are able to shop til you drop. What are you waiting for? There are deals out there to be had. You just need to find them. I think this summer is going to be a great time to capitalize on some great deals.
Just know - the market is quiet. You may have noticed all the "FOR SALE" signs out there and the SOLD riders are not going up like they used to. This is becoming more balanced. Agents can now really negotiate on your behalf. If you have older children living at home, this may be the time for them to grab something. There are homes out there selling for UNDER asking now.
Homes are being listed at the price they are expected to get and not silly under value prices and encouraging bidding wars. Those days are slowly disappearing. This is good news for buyers.
On top of all the uncertainty, we are also seeing some Buyer Remorse out there. Buyers who haven't closed yet on their deals and now seeing all the choice out there are feeling they overpaid. This is always going to happen if you are caught when the market is shifting. Timing is everything and no one has a crystal ball. All I can say to that is, I am sure in 10 years from now, you won't regret your purchase because real estate is one thing, if you buy it and hold it long enough, you will NEVER lose. So hold on to your hats and get ready for a wild ride.
If you are looking to purchase a home or sell a home, work with someone you trust and is working in your best interest. This too shall pass but for now, it is definitely been a fast turnaround. Scary for some and opportunity for others.
Keeping it real in real estate !
Your friend
Michelle Makos
Broker/Manager - Royal Heritage Realty Ltd.,
Direct: 416-300-3004
