2020 has been a year to remember on many levels as well as in the Real Estate world. Personally, it has been my best and busiest year to date.
For those of you having questions regarding the real estate market we are currently experiencing, I have put together a few questions that I will answer for you.
What is the real estate market like today? Well, we are currently in the middle of a sellers market. There are many buyers out shopping for their forever home and not much inventory to show.
What is driving the market? The market is being driven by an influx of people coming to the area. People are moving back home from other provinces, immigration is also a contributing factor in the influx to the market, as well as Covid. I have been in this business for 12 years and I have never experienced this type of market. I have asked some of my colleagues who have been in this business longer than I have and they too have never witnessed a market quite like we are currently experiencing. This is something new in our area. It is great for the economy, which is good. Supply and demand is also something that is driving the prices on houses. With so many buyers shopping around and not much inventory that causes competing offers which will end up giving the seller over their asking price. People are buying houses on site unseen...some in part due to Covid and some people are buying a couple of houses because of the pricing and holding on to them for security, as an investment. There's a few factors driving the todays market for sure.
Do you think the market will change anytime soon? According to the predictions out there, the market is still strong. There hasn't been a slow down period. It was slow between Christmas and New Year's, which is normal, but it is a continuously moving market, similar to what you would witness during the spring. You list something and the agents are holding offers to give buyers time to go in and see the house and write offers and the house sells within a couple days because of the demand. I'm sure it will change but it doesn't look like it will be soon.
What information do you have for buyers or sellers in this type of market? In this market, I would ask buyers if they were pre-approved. You have to know what your budget is and shop within your budget. If your budget is 300K you need to start shopping lower. Especially in this market - if 300K is the top of your line, you will definitely need to start off lower than that because if you don't find something for list price or lower, you will be guaranteed to pay over asking. Give yourself 30-50k below your budget when shopping so you have room to negotiate.
How many homes did you sell in 2020? I sold 90 homes in 2020. It was my best year ever in the business. I generally sell between 60-75 homes but last year was substantially different than other years due to the incredible market we are experiencing.