
As a “robust” spring market emerges, competition is ramping up and even though that can be discouraging, rest assured you can still buy a home.
Here in Durham Region, the average home netted $943,840 and 948 houses exchanged hands in April, marking a 5.6 per cent increase in sales compared to April 2023’s 898 sales.
“We continue to observe a robust spring market with rising average prices and sales in almost all regions,” Central Lakes Association of Realtors President Vicki Sweeney notes. “This positive momentum reflects not only the resilience of our real estate industry but also demand for housing across our communities.”
In April, the Toronto and Region Real Estate Board (TRREB) reported that seller’s market conditions are starting to emerge in many neighbourhoods and predicts lower borrowing costs in the months ahead will help fuel increased demand for housing.
In a balanced market, supply of new listings meets demand. Less tension between buyers and sellers results in stable home prices and the ability for buyers to add conditions to their offers without getting immediately dismissed. In a buyer’s market, meanwhile, there are more homes for sale than there are buyers and because there’s less competition, buyers can take their time shopping the market and are able to negotiate.
In a seller’s market, on the other hand, there are more buyers than there are homes for sale. With fewer listings to choose from and increased competition, homes typically sell quickly and often garner multiple offers or even bidding wars. Often, they sell over asking price. Because the seller is in the driver’s seat, it’s not the time to make a low- ball offer.
The King Home Team: Royal Heritage Realty has proven experience in every type of market. Here are some tips for navigating a seller’s market:
Get pre-approved for a mortgage. A pre-approved mortgage tells you how much you can afford, what your interest rate will be and how your monthly mortgage payments will look, the Canada Mortgage and Housing Corporation (CMHC) explains. ( Visit: www.publications.gc.ca/collections/collection_2023/schl-cmhc/NH15-114-2022-eng.pdf ) for CMHC’s Guide to Buying a Home in Canada, which offers helpful mortgage
information.)
While a pre-approved mortgage isn’t a guarantee of final approval, it can help you to narrow down your search and help you make decisions about affordability, neighbourhood, and home type or size. Having a pre-approved mortgage also lets home sellers know you’re motivated to buy, which can be a significant advantage in a seller’s market.
A pre-approval also locks in the current interest rate for up to 120 days so if the rate drops – and the Bank of Canada is far more likely to cut rates this summer than raise them like it did last year – your lender should honour the new lower mortgage rate when you’re ready to make your purchase.
Enlist a knowledgeable real estate agent. Buying a home is likely one of the most significant financial investments you’ll ever make and having an experienced real estate agent on your side can help ease much of the stress associated with finding and buying a home in any type of market and especially a seller’s market.
An experienced agent has knowledge of neighbourhoods and market conditions, as well as better access to homes in and out of the local market, which can be especially helpful when supply is low.
Make a strong offer. You may get just one chance to make an offer in a seller’s market and it’s not always about the money. An offer that meets the seller’s needs, such as agreeing to their need for a short or long closing, can tilt the scales in your favour. Also in a seller’s market, an offer should have as few conditions as possible.
Be patient. In a seller’s market, even a strong offer may be rejected and though that’s disheartening, we encourage you to learn from the experience and to keep trying. The King Home Team will help you see new listings as soon as they hit the market – and sometimes even before – so you’re ready to act quickly and decisively when you find a property that checks off your must-haves and possibly even many of your ‘nice-to-
haves.’ The Canadian Real Estate Association advises buyers to be patient and to not get caught up in “auction fever” when it comes to multiple offers on a property. (www.creacafe.ca/what-does-a-sellers-market-mean-for-buyers/)
The King Home Team: Royal Heritage Realty monitors trends and economic conditions daily. We know that real estate is very local so what’s happening in one neighbourhood may not be happening in another and we may suggest properties you hadn’t previously considered to help stretch your budget.
The buying journey – especially in a seller’s market – can be overwhelming and challenging but we will be by your side every step along the way. If you want to be part of the real estate market this spring, contact The King Home Team: Royal Heritage Realty today!