Real Estate Fall market PREDICTION;
What you need to know

By: Gemma Leggett

Real Estate Fall market PREDICTION;
What you need to know

Tags: Fall market 2018, Real Estate fall market 2018, prediction for real estate fall market 2018

 

The Fall Real Estate Market is traditionally the second busiest time of the year. Buyers and Sellers want to move before the cold days of winter arrive. Unfortunately, this year we had a Spring Market that never blossomed:(
Not long ago, it would have been hard to imagine a time when the GTA's real estate market was so quiet you could hear the crickets chirp. Yet here we are. Buyers today have more listings to choose from and face less competition than we've seen in early 2017. Many home owner were forced to do one price reduction after another to sell their home. So it will be interesting to see what the market will be doing this fall.
 
What you need to know:
 
Previously, young millennial first time buyers kept the Real Estate market alive: Comes October 24th, The Bank of Canada will introduce another interest rate hike! That would be the third interest rate hike this year, reducing Buyers purchasing power even more. Doing the Math: It your interest rate is 5% and you have $100,000 mortgage, your monthly payment should be around $536.82. If your interest rate is 0.25% higher; at 5.25% your monthly payment now becomes $552.20. Yes, it's only a $15 per month hike, but that's also on a $100,000 mortage only! Now if you mortgage is at $400,000 we are talking $60 more per month, how much is that cost you in 20 years?? 
Tip: if you are thinking of buying this fall: get pre-approved for a mortgage NOW and ask your lender to secure you the current interest rates.
 
The market may be “losing steam”: The fall sometimes could have a depressing effect on markets, however, get out now, before the cold weather starts and price go back up in 2019. By fall, sellers who were “testing the waters” with a listing in prime selling season have either sold their house or are now serious sellers. These motivated sellers often want to get things settled before the end of the year, completing their own move before the holidays. Bottom line is: The longer a house has been on the market, the more likely a seller is willing to negotiate as the price will go down by the day.
 
Move vacant property: As the market has cooled down from last year, we are experiencing an increase of homes for sale that are sitting empty, likely due to sellers holding out for spring 2019 and a return to 2017 prices... BE CAREFUL with this decision... 
 
A Supreme Court decision made home sales data public:  Anyone who has bought a home in the GTA over the past couple years can tell you about asking prices: they don’t mean a whole much. Now prospective buyers will be able to easily access data on how much homes in the same neighborhood and of a similar size are actually selling for. This will give buyers a better idea of what the home they want to buy is actually worth and will empower them to make better decisions but more importantly to NOT over pay for their house. The net result should be: Sellers listing their homes at fair market value.  (Price to sell is the way to go)
 
The Canadian Real Estate Association (CREA) forecast price increase in 2019: With much of 2018 now in the rear-view mirror, the stress-test on all new mortgages continues to weigh on home sales. CREA forecast national sales to rebound modestly (+2.1%) in 2019, in Ontario. Which will remain below annual levels recorded in 2014 through 2017.York and Simcoe Region have been hit hard in 2018, it will be interesting to see where the market will go. 
 
Finally, here is the Formula to sell your house: Great Location + Staging + Market Price + Right Agent = SOLD sign.
TIP: Don't price your home to "test the market", you might be desapointed. Sit down with a qualified, local, experienced Realtor and take their advice. We follow the market, we live in the market, this is our job and we do it everyday. Listen to what the market is telling us as in the long run, your house will sell faster AND for the most amount of money. The days when almost every house gets ridiculous amount of showings and ridiculous amount of offers are over. Embrace this market:)

As always, CALL ME for a FREE opinion of value, staging and marketing strategy for your home).

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