Fall is a time of change.
Our days are getting shorter, we marvel over the bright fall colours, crisp mornings are showing signs of winter ahead.
We have also experienced significant change in our local real estate market.
With lending rates on the rise, we have seen a significant correction in our values from the height of the market in early 2022.
In many segments of the market this price adjustment has been in the range of 15-20%.
Many offers today have conditions. This may be a sale of Buyers property, home inspection or a financing condition.
Looking at some local stats, you can clearly see the shift in the market.
The # of active listings in Centre Wellington last August 2021 was 56 compared to August 2022 at 125 active listings.
The average days on market to sell for August 2021 was 21 days compared to 34 days currently.
The average % of Sale Price/List Price in Agust 2021 was 102% compared to August 2022 at 95.6%.
It was possible to obtain a 5 year Mortgage in August of 2021 at around 2-2.5% where today your will be in the 5.5% range.
WHAT DOES IT MEAN FOR BUYERS AND SELLERS?
What does this mean to a Buyer today?
There is more inventory on the market which means more options and choice for Buyers.
Prices have been coming down.
Interest rates have made purchasing a home more challenging. It is essential to arrange a discussion with your finance specialist in order be well prepared in a purchase today.
If you have an approval in place, it can be very advantageous when negotiating an offer.
Connect with your Realtor to make certain that you have a strategy in place which will ensure a successful purchase. This may mean preparing your home for sale, staging your home or perhaps a home inspection on your purchase.
Being well prepared on your purchase can save you $ and will make the process more seamless.
What does this mean for a Seller today?
Sellers must be aware of the current market and have realistic expectations.
A Seller must be willing to negotiate.
We take pride in assisting our Sellers through the listing process in order to assure that we can obtain the highest possible value for your home. This process may mean staging, some small renovations, painting, etc., to make your home stand out among its competition.
A Seller today must have patience. With our days on market increasing a Seller must have patience and allow their Realtor to properly market their home for sale. We spend a lot of time and invest allot of money into our listings to ensure that their target Buyer is being reached by many different marketing streams. What sold in a week last year may take 1-2 months to sell today.
HOW WE CAN HELP
Be confident that hiring the right Realtor with a proven system and strategy will provide the expected results within a reasonable amount of time.
The reality is today, that we are at value levels similar to 1 year ago.
We are starting to see many opportunities in the market that just were not possible over the past 2 years.
Buyers can make informed decisions; Sellers have confidence that Buyers will be able to close on their transaction.
Sure, mortgage rates are a little higher these days… but historically rates have always been in the 3-6% range…so this may be the time to adjust your expectations to the market today and where we expect things may continue to be for at least the remainder of 2022 and the first half of 2023.
At the Impact Realty Group, we have a team of professionals that guide you through the selling process and it has been proven through many years of experience and success working together with our valued Buyer and Seller clients.
If you or someone that you know may be thinking of making a move in the next 6 months, please have them reach out to the Impact Realty Group, we would be excited for the opportunity.