As the summer months seem to fly by…we in the Real Estate business have been adjusting to the new norm…one in which we are dealing with new procedures and protocols, a significant Seller’s market, a shortage in listing inventory and Buyers and Sellers having to adjust to act under pressure. It sure has been interesting and really makes one wonder just how long this can continue.
As an industry we believe that we are working forward with our clients best interest in mind. Safety is key and we do believe that it is possible to conduct our business in a safe manner…looking at the numbers this year….it does clearly show that this is possible.
These numbers have shown that the Realtors that were proactive early in Covid, those that dug into their databases, stayed connected and in front of their clients, those that perhaps tried new marketing strategies…video…zoom…etc…those that were there for their community and showed support in so many different ways…have actually had an amazing year in Real Estate thus far. Many other Realtors ghosted their clients and have struggled for stability in such a competitive market. We feel very fortunate…this has proven to be an excellent year for our team in Real Estate, shaping to be one of our very best to date….and we are thankful to our loyal clientele for the opportunity to be their Realtor of choice in such challenging times.
Looking at July’s numbers in review. (Additional July 2020 Centre Wellington statistics are attached to this email!)
Locally in Centre Wellington there was 51 residential sales.
Of these, 31 of them actually sold in multiple offers over asking price!
This clearly demonstrates the strength in the market as we struggle locally to produce enough inventory to meet the immense Buyer pressure. Simply put, at current rates of inventory and absorption, we will be some time before the Buyer demands are met.
Another trend that we are seeing in the industry is delayed closings, an increased number of properties with conditional sales coming back on market, the odd deal not closing, longer time periods in order to obtain financing, an increasingly stringent commercial lending process and lawyers and lenders seeking more time to satisfy terms, conditions and completions. Looking at these indicators it would likely point to a shifting market? Perhaps in months to come…but for now the demand is just too great.
Other areas of the market deserve attention an quite likely to add to change in the coming months. How many people do you know who have taken advantage of CERB? You may not know people personally but national stats show that many Canadians will find their funding ending very soon. Do you know any landlords who applied for CERB or businesses looking for assistance with payroll? These programs are also coming to end. Have you thought about the thousands of University Students who will be attending school online from home this year rather than moving into University housing or off campus housing in University towns across the country. How will this affect our real estate market. Do you know anybody now working from home…indefinitely?
We had a call recently from a business owner looking to downsize their space from 5000 sq ft…..to 1000 sq ft at most. How many other companies occupy prime, downtown real estate across the country…who simply no longer need the space? Will that have a trickle-down effect on our market? Or does this only increase the demand out of the city into desirable small towns within a few hours of the GTA? These are all great questions and we are yet to see the real, long term effects in our local real estate market.
We really wish we had a crystal ball…that would certainly make things easier wouldn’t it?
For now it is a strong Seller’s Market…are you or someone you know thinking about Selling?Please contact us now for a short discussion of this process to see if in fact the time is right? Are you thinking about Buying? Are you prepared? In this competitive market our Buyers have been well prepared and aggressive in pursuit of their dream home. There is never wrong time to Buy the perfect home! As we carry into the fall months it will be interesting to watch these dynamics play out….and we will be sure to keep you informed.
Looking very much forward to a safe and successful August….at the same time wishing you all the best!