We ❤ Spring! Trends in our Real Estate Market – April 2021

Well, April has arrived and the world is now more than 1 year into this Global Pandemic that has affected us all in many different ways.

This is certainly a time of the ages and will be the focus of many conversations for years to come. They are likely to outlast anyone reading this today.

One thing we have asked ourselves is ‘how has this past year affected the way that we live? What about our families and friends? How have we all been affected? Would you be proud of your own actions?

Should you be living your life differently?’

Many people worldwide have been affected adversely through this pandemic. We know many pilots, restaurateurs, hoteliers and small businesses that are really struggling. We have friends and family in places like Cuba and the Philippines who are literally having difficulty putting food on the table. And friends in the US who are travelling freely and living life with a ‘strong survive and protect yourself’ approach. Comparing these situations to our life here in Fergus/Elora…we feel quite ok.

When you look back on the world economy and how things have changed over the past…some things are beginning to make sense. There are in fact many people that have benefited immensely thru the pandemic. It seems the gap between the haves and have nots is getting greater.

Try and rent an apartment.

OR

Try and buy a boat, a motor cycle, snowmobile, RV, cottage and you will see what has happened in these sectors.

Many people have more $ than ever (limited places to spend) and as a result prices have risen.

This is driving the real estate market across North America. As people seek space, privacy, recreation etc. our market continues to see growth primarily resulting from exodus from urban cities.

This all being said, it seems our market is starting to see some form of shift or pivot in the past few weeks.

We are seeing the following trends in our market which is an indication of change.

1. Fewer showings on listings
2. Fewer offers being presented on offer day
3. A large spread between offering prices
4. The winning offers are still quite strong
5. Some buyers choosing to sit idle and not participate in multiple offers, feeling that they won’t be able to compete
6. The odd listing passing their offer date with few or no offers, only to sell shortly after at a strong price
7. More listing inventory

What does this tell us?

This shows that there are still many Buyers pressing to Buy. That some Buyers are still feeling great urgency to Buy Now.

It also tells us that there are many Buyers feeling ok to wait, perhaps they feel that more inventory is coming…or frustrated to the point that they are giving up.

The spread in offer $ also tells us that as we satisfy the “urgent” Buyer. That there may be a leveling of prices in the months to come, as offer #2 or #3 are often much less.

It seems this is affecting the low through mid to high ranges in the market, where the super high end has lower inventory, less trade all around and has been affected less than other sectors simply because there are less transactions.

The coming weeks will be interesting to watch and see the above points and how they continue to pivot.

It will also be very interesting to see how the latest restrictions affect our local market.

We suspect many Sellers may choose to hold off a month. Will this bring more Buyers into our market?

With a shifting market it is very important to know where you are at. To know your numbers, know the market, and know your risks and limitations.

If you are considering Selling or Buying – please reach out and we can create a plan that ensures your best interests are looked after. We pride ourselves in providing success to our Buyer and Seller clients in a challenging and changing market – Lets discuss your plans!

We hope that you were able to enjoy some time outside this past weekend and enjoy the simple things!  Sun, fresh air and close family!

Be thankful and humble.     

If you felt in your reflection above, like you should be living your life differently, there is no better time to start!

All the best!