As the spring weather is figuring itself out, the real estate market is heating up. Sales, activity, and competition are all on the rise, making it an exciting time for both buyers and sellers alike. However, one thing that buyers may not be too thrilled about is the return of multiple offers and holding offers until a specific day. While these were common practices two years ago, they became less frequent as interest rates increased. However, after two meetings with no interest rate hikes from the Bank of Canada (BOC), buyers are feeling more confident that rates will remain steady for the time being.
If you're in the market to buy, it's crucial to be prepared ahead of time, just in case the perfect home becomes available. One strategy that has worked well for some clients is securing a Line of Credit on their home equity. This approach can help strengthen your offer without having a subject to selling or financing. It's not necessary to use the Line of Credit, and it can be rolled over into a standard mortgage at a lower rate if timing becomes an issue. Additionally, it can buy you time to sell if needed while securing your perfect home today, and it's usually paid out when you sell your home. However, it's important to make sure you're comfortable with this strategy, and you should only proceed if you can afford it.
For sellers and buyers, it's essential to keep an eye on market trends. The chart below highlights the top 30 sub-areas in terms of sales, comparing year-to-date sales, new listings, and sale-to-list-price ratios. This information can give sellers a better understanding of the competition and buyer expectations in 2023. As a buyer, this chart can help you compare your options and give you an idea of what to expect when making an offer. With the market picking up, this chart can also serve as a baseline for future trends in each sub-area and the single family home market. I didn’t want to bombard everyone with multiple charts. If you are interested in getting the Townhome, Apartment statistics or want to see any other stats just reply to the email and let me know I will make sure to send your way :).
The spring real estate market is picking up, and both buyers and sellers should be prepared for the increased competition. I hope everyone has a great week and reach out if you ever have any questions! -Mark and Maddie