With Halloween now in the past we are wrapping our heads around shorter days and the impending Arctic freeze (as one client recently referred to winter in Canada).
In years past this also meant a mellowing Real Estate Market, perhaps even some listing inventory and a more balanced market.
With Covid has come many oddities and a new home that we are all grasping to understand. We have seen a movement of people transitioning from higher density areas to markets like ours – a little space, some privacy, community, affordability & safe.
From here they can work from home and have the life that they want.
We recently spoke to Realtors in Muskoka, Georgian Bay area, east Coast Canada, West Coast Canada, Florida, Texas and Hawaii. Their story is eerily similar. They have seen a surge of Buyers looking for ideal spaces to live and work from.
These people have not been affected by Covid financially. They still have their jobs and now have more disposable income than ever without travel, entertainment $, dining etc. Some of them have moved to more affordable markets and some have simply thrown caution to the wind, seeking the lifestyle that they have always wanted by moving forward with their longer term plans.
Residential interest rates remain at all-time lows. We commonly see 5 year fixed rates right around 2%….unbelievable. If you are renewing, lucky you. Is it worth breaking your current mortgage to take advantage of today’s rock bottom rates?
Let us know and we can connect you with the right person to determine whether this is the right time or not.
This pressure to move out of the city will continue for the foreseeable future. Locally, with our current level of inventory, our current absorption rate and trend of upcoming inventory, we are very likely to see this Seller’s market continue into the winter season. There are other sides of Covid that are now starting to show. We continue to see the lower price ranges seeing the greatest amount of interest, activity and offers.
Many homes in lower price ranges sell well over asking prices in multiple offers.
Moving into the mid ranges many Realtors and their Sellers still experience multiple offers, some others do not.
As we look at the higher price range in homes, we are not seeing the consistency that we saw earlier this year.Good homes still sell at a great price….it is simply not as predictable as previously this year.
The commercial world is much different. As many companies pivot to work from home, many will also shift into smaller spaces…different spaces.
Our retail world is changing. With the immergence of Amazon, eBay, Wayfair, Shopify etc… the traditional mall setting or big box store is very likely to change in the years to come.Sports entertainment, bars, restaurants, concerts and conferences are also looking for a new norm.As we transition thru these times we are starting to see some commercial fallout already.
Take a walk or drive thru the downtown of any larger city and you will see for yourself. Many vacancies, stores closing, empty office buildings etc…Commercial Lending is more challenging than ever.
In speaking with many Realtors, mortgage brokers and lawyers, we are now starting to see some concerns of affordability. The travel industry has been devastated, likewise the hospitality industry is experiencing tough times. Bars, restaurants, gyms, hotels, airlines, retails sales, fitness studios have all suffered great loss. With many people out of work and subsidy no longer available for many others, we are beginning to see some inventory coming to market as a result.We are in a supply and demand market….this shift of supply and demand thru winter and into spring of next year will no doubt provide a different market in 2021 than what we have seen in 2020.
Lastly, the Election Circus south of the border has entertained us all in recent times. Lets be thankful we live where we do. Clarity in the US will undoubtedly provide more stable stock markets and hopefully translate into a stronger forecast for us as their northerly neighbours.
As we begin to think of Christmas and the end of this unprecedented year, be thankful for what we have, enjoy your family…your friends.
Support your community and look after one another.Be intentional about making the last months of 2020 memorable in a good way.
If you or someone you know… need to discuss Real Estate…we are here for you.