New Listing: 301 – 23 Stumpf St, Elora
October 5, 2020
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The Local Real Estate Market

October….well….we are now deep into what many pundits have termed “The Second Wave”.

This is what they claim to be the real test on our ability to survive and recover from this pandemic. What is becoming more clear is that we all must learn to live with the Coronavirus. This is not going away any time soon and we must all learn to live smart, with extra precaution, planning, awareness and consideration of others. Perhaps it is time to get in great physical condition? 

From a Real Estate perspective our local market continues to maintain value and would clearly be termed a “Seller’s Market”.

The demand for local property continues to exceed the supply!

  • We are desperately in need of Elora property in all price ranges.
  • Bungalows throughout CW are in high demand.
  • Rural property with space or perhaps with outbuildings, also continue to be in high demand.

If you or someone that you know may be thinking about selling, please reach out and we can arrange a discussion to see how we may work together am maximize this great opportunity. Interest rates are phenomenal and for those people looking to enter the Real Estate Market, you can now obtain 5 year fixed rate mortgages for under 2%….the best rates we have ever seen. Although the qualification process is more diligent than ever, there are exceptional opportunities for those that are prepared. How many years do you have left on your term? Is it a good time to consider an investment property? Is it worth refinancing at this time or re-negotiating a new mortgage? If you would like us to connect you with one of our trusted finance professionals, please don’t hesitate to reach out. 

For potential Buyers – we are finding that properties are often being advertised as “Coming Soon”. We are seeing some homes listed on out of town Real Estate Boards and some private sale listings. We are also faced with offer dates or listed homes that may consider “Bully Offers”… all very confusing for a Buyer in today’s competitive market.

What to offer? When to offer? Is it a fair list price? How can we arrange a viewing?

These are all questions that we hear on a steady basis. One thing that is certain, you need a knowledgeable Realtor with experience in negotiating through these challenging times. With our advice and recommendation we have found many of our Buyers continue to be successful in purchasing the right home in a tough market.  A couple of key indicators that we are watching that will certainly shape the market for months to come.                   

  • Recent Provincial restrictions in Ontario and actual city restrictions in Quebec have made life more challenging for people living in higher density areas. The condo market in Toronto is softening with higher volume of listings and a curb in values. This seems very likely to support further relocation out of the city to smaller markets like ours. Anybody now working from home permanently will have the opportunity to pick their ideal community so long as there is strong internet service.
  • The commercial world is pivoting. We are finding many companies have downsized or starting to seek options to downsize their commercial real estate footprint. Since workforces are now at home, there is less need for large commercial space. What will happen in the downtown core of many Ontario cities as companies downsize to a fraction of their original footprints? How will restaurants and gyms survive? How do retail stores compete against Amazon, Wayfair or Hudson Bay online? What will happen in many University and College cities across the country as many students attend school online rather than occupying their student rentals? We have experienced first-hand where lenders have been critical of the actual tenant business in buildings and questioning whether that business may affect the long term income of a building, ultimately affecting the loan/value proposal of the lender. We have also seen a trend in the fast food industry where drive thrus are being installed or lanes and services added to increase the ability of a store to meet the demands of drive thru’s for years to come!
  • The end of many government support programs is very likely to result in unfortunate circumstances for many people. This is also likely, unfortunately, to provide some additional inventory of homes for sale. Relocations for employment and downsizing for affordability will also provide homes for sale.     
  • Simple supply and demand. Although we are very likely to experience see some shift in our market, it is very likely that any additional supply this fall through winter is met with demand from Buyers looking to come to our market.

If you or someone you know are considering a move during this time – we would love to help you through the process!

Contact us today!

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