As our supply of available homes slowly increases, multiple offers become less the ‘norm’ and buyers feel they may just have a chance, there is a perception that the hot market unexpectedly created by the pandemic is over. But, in their housing section this week, the Globe and Mail posited the theory that there will be a post pandemic “blitz”. While the Globe is a Toronto centric newspaper, the Toronto and Vancouver markets are mostly in lock step. This theory, as yet unspoken here, does make total sense. What about the homeowners who also became dissatisfied with their homes, space, gardens (or lack of same), location etc but stuck it out until the pandemic was over, or nearly over, in Canada? These were the owners reluctant to take the risks associated with Covid in order to sell their home….so will they do it as we all become vaccinated and our local world opens up to become a more familiar place? Well – banks tell us that Canadians have unprecedented savings after staying home for 18months and businesses are reporting that many employees want to continue working from home. Time will tell the tale, but if a “blitz” is in any way likely, potential sellers should move ahead sooner rather than later. In the event of a suddenly increasing inventory over the summer months, a balance will occur – good for buyers, but would mean prices gradually dropping for sellers. In any event, what we do know now is that inventory is slowly increasing. Who says “home is where the heart is”? Apparently some hearts have moved elsewhere – home to follow!
DOWNSIZERS – last tip for being well prepared and knowing your options….
When we have paid off our mortgage with good equity in our homes, we assume that bankers will be like the ones of old and welcome us with open arms! This happens only if you have enough liquid cash to pay for your next home, still have a well paid job, or if your current home is sold. Retirees find that the banks are interested only in income as a prerequisite for purchasing before selling – which becomes a serious issue if you have already bought another home on the assumption that a loan would be forthcoming!
Therefore our advice is to sit down with your mortgage broker or banker to find out what your options are in order to downsize to a more appropriate home BEFORE you begin the process – a huge part of the preparedness.
If you must have a subject free offer on your present home before the financial institution will allow you to purchase your next one, as your realtors, we can advise you as to a plan we can implement to protect your interests and enable you to hopefully make one simple move. We have had the privilege over a lot of years in working with downsizers to make the very best of their new lifestyle. We are happy to pass on the first hand experience.
Enjoy your weekend – our team is at the ready to keep you covered even when the winds of change blow.
Generations Real Estate Partners:- Michelle Hawthorne, Scott Johnson, Ray Harris, Shane Goutsis and Sheila Francis.