Well this May has to be one of the most welcomed ever!
With over a month of isolation and social distancing, we are all looking forward to some better weather, some more positive times and hopefully some form of a normal routine again.
We … like yourselves have been sticking to the plan … social distancing, at the same time trying our best to serve Buyers and Sellers as they transition during some pretty uncertain times.
We fully expect that many of you have recently spent more time online than ever? We know this is true … as many of our Real Estate sites and portals have seen more activity than ever. Many of our online metrics are at all time high’s as people research everything Real Estate.
Is this the right time to Buy? Is this the right time to start the search for your Dream Home? Is it safe to Buy or Sell? These are some of the many questions that you may have.
Being immersed in the business we thought that we would start with some stats from the month of March which shows the strength that we saw in the market leading up to Covid-19. In this we see a Seller’s market that had strong sale prices, low inventory, low days on market to sell and high sale price/list price ratios. This was due to the fact that we came into March in a very strong market and continued to see multiple offers and strong sales for the first half of the month. We have included a visual so you can see the information year over year.
As we move in to May we will soon have the monthly stats for April that will show the true impact of Covid-19 on our local market, and perhaps where we are headed for the month of May.
Keep an eye out for an email soon showing these stats.
Staying on top of the market during these times is more important than ever and will help you make the best decisions possible in preparation for your next move. You can count on us for this information and want to make certain that you reach out with any questions at all…we are happy to help.
Below are several metrics that we have been tracking which help us advise clients during these unprecedented times.
The first is the decline in inventory and trade.
Over the past 3-4 weeks we have seen a steady decline in both inventory and trade volume. There is no doubt that the Stay at Home Measures and many policy and procedures that have encouraged people only to Buy or Sell to satisfy a housing need, have resulted in a very quiet market.
Surprisingly, values in Guelph and KW in particular, have held strong. It seems there are still enough Buyers in those markets to outweigh supply which has resulted in strong sale prices and some multiple offer scenarios.
Centre Wellington has not been quite as strong with several listings now on market for some time. However, unique properties and homes in the lower price ranges have still sold with strong values.
Another metric likely to help our market is the recent reduction in Mortgage Rates.
Current 5 year fixed rates are very attractive.
For those that prefer Variable rates, there are some very appealing options that may fuel the market as we move into the spring/summer months. If you haven’t spoken to your mortgage specialist recently, this is an opportune time create a plan and make certain that you are taking advantage of some amazing opportunities.
Movement out of the GTA.
We have great referral partners in the GTA. Speaking with many of these prominent Brokers, there is a general feeling that this pandemic may fuel a desire to move out of the city for many people. With people now adjusting to working from home, the need to live where you work is less than ever. Many of these Brokers have experienced a growing trend of clients looking to Sell in the city to escape to markets with more space, perhaps a yard, larger home … places like CW, Guelph and KW are very likely to be more attractive than ever.
What does this mean to our market? It could potentially result in more Buyer pressure.
Lastly … the financial effect of the Pandemic.
The longer the Stay at Home Orders are in place the more likely this will have long term, significant financial burden that will be very difficult to recover from. Simply put, this has affected everyone. Many people are not working, others are working reduced schedules. Many others have lost businesses. The economy is in recession. Typically, this scenario results in more motivated Sellers and inventory, perhaps even a correction in values? We have yet to see any results in our market. Ultimately, these results will be dependent on the length of time of the National/Provincial shut downs.
So … we wish we had some more detailed predictions or recommendations. Speculation at this time is risky as we don’t have a crystal ball.
Should we connect for a call, video chat or socially distant meeting to establish when the right time may be to prepare to make a move?
This is easy, we are set up to transact in Real Estate using the latest in technology and tools that will ensure our safety and well-being.
Wishing you and your family all the best during these challenging times.
Please don’t hesitate to reach out. We are more than happy to chat!