WITH ALL THE ATTENTION ON THE MARKET – IS NOW A GOOD TIME TO SELL YOUR HOME?
As a homeowner today, you may be wondering if now is the right time to put your home on the market. With prices seemingly cooling off, you may be concerned that you won’t get the same value as sellers did previously.
While it’s true that the market has softened, there is no need to panic.
The market is shifting for 3 reasons.
1: Interest Rate Increase
One of the main reasons we are seeing a correction in the housing market is because of an increase in interest rates. Mortgage rates have been at record lows since March of 2020 and were expected to stay low for the foreseeable future. This led to an buying frenzy of detached homes; buyers had purchase power more than ever before.
However, low interest rates are not sustainable long-term. Low rates will inevitably start to rise again and when they do, demand for homes will decrease. This increase in the cost to buy leads to a decrease in demand, and in turn, a decrease in prices.
2: Government Intervention
Another reason we are seeing a shift in the housing market is government intervention. Federal and provincial governments have introduced several measures in the span of the past year in an attempt to cool the housing market. These measures include changes to mortgage rules and stress tests, banning foreign buyers and introducing a ‘cooling off’ period.
3: Buyer Fatigue
Buyer fatigue is another factor that is leading to a reduction in overall sales volume. Many would-be buyers have become overwhelmed by the recent “hot” market and are sitting on the sidelines, waiting for a shift in behaviour before re-entering the market.
These 3 factors aside, there is ONE great reason to sell now.
WHY SELL NOW?
Although the market has softened, and sales volume is down, serious buyers have far less quality homes, or inventory, to choose from. .I’m showing less homes to buyers because sellers are also guilty of sitting on the sidelines, this actually is creating higher demand. A North Shore property listed will stand-out and sell quickly because of this historically low inventory,
Though we can’t predict the future, we are seeing certain market trends, such as increased bank sales and added pressure on homeowner financing, which may lead to some panic selling. If you want to maximize the value of your home, you want to be ahead of the curve and lead the process.
If you want to know what your home is worth now along with a realistic forecast of what’s ahead, don’t hesitate to give me a call today! Discussing the market is one of my favourite things, it’s my pleasure to help.