Should wait until next year to see what else comes out?

We found a home we loved last week but wonder, ‘Should wait until next year to see what else comes out?’

The action Buyer’s should take is unique to them and their individual scenario, life stage, needs and budget.  An action plan should be developed with their REALTOR® and Lender and the next steps will then be a very concise answer.

In the early part of 2017 inquiries poured into Brokerages from all types of Buyer’s wanting and hoping to get into the York region housing market.  Demand was so high that depending on the budgets of the home Buyers and their location preference and style it was a call that would be served but undoubtedly have a delayed outcome.

Homes were placed on the market for higher prices that had been unseen historically and many sold high above that price in competing offers.  There were many tough moments for Buyers who kept throwing their hat in the ring to become homeowners with many others.  With every multiple offer scenario there could only be one successful offer chosen, so it would be back to the drawing board again for those not selected to find another home to offer on.

As prices continued to rise, the one thing the market was still missing was a high supply of homes for sale.   Once supply suddenly started to increase with many Seller’s aiming to yield these high dollars for their homes, the market shifted rapidly to a more balanced market.  The competition also reduced in many cases as there were more homes to select from but home values remained high.  Supply continued to rise and some homes that had been previously sold in certain cases for sky high prices did not close and were launched on the market once again and prices started to decline to levels seen in 2016.

As a result, the market began shifting again to a Buyer’s market and more offers are being drafted and submitted with conditions included.  For patient Buyers who needed crucial conditions like financing and home inspection and others in their offers to be considered, these offers have been accepted.   Suddenly, the confidence in Buyers being able to make their home purchase a reality in York region or nearby South Simcoe has been more attainable.

Interest rates although rising remain low, the 15 per cent foreign home Buyer’s tax or non-resident speculation tax introduced in the Spring may have slowed some of the actions of that specific Buyer’s segment however sales continued for the many that weren’t affected by the surcharge.  The media attention that may have been good, bad or incorrect and the surge of supply of homes on the market also contributed to Buyer’s acting with more caution to take action.

A great number of home Buyer’s who may have ideally wanted to buy in Toronto or closer to Toronto and were priced further out to the Greater Toronto area in the first place, started to reconsider their location preferences as demand remains higher in many areas of Toronto but values in some areas balanced.

The new lending guidelines for insured borrowers putting down less than 20 per cent on their home purchases have been in effect for more than a year now and many successful purchases by this group of Buyers have been easier to conclude with high success and price negotiation to lower than asking price. It’s been an incredible time to buy with such a great selection of homes available across York region at more affordable pricing in some instances.

The New Year will begin with stricter lending guidelines for those with greater than 20 per cent to place on their home purchases and this caution executed by lenders may decrease Buyers budgets moving forward but for many the more conservative numbers may be more spot on to what Buyer’s anticipated they wanted to spend in the first place.  Just because a lender approves a certain maximum budget for purchase, many have felt over the years that these pre-approvals were far too generous.  For a great number of REALTORS® the target budget executed in the search has always been a more conservative range below the maximum pre-approved numbers.  Speak to a lending professional and bring questions and ask for the answers as they pertain to your individual financial situation.  Share the pre-approval success by booking a face to face discussion with your REALTOR® to empower you in your next real estate move.

Timing pricing of homes is not a fine science and the shifts that have been experienced in 2017 have been dramatic.  Home demand in Toronto and the Greater Toronto Area will continue as we welcome over 1 million more new Canadians to this country over the next few years and the majority will aim to move to Vancouver and surrounding area and to Toronto and the Greater Toronto Area.

The holiday season for first time home Buyer’s, single income families, those re-entering the market after choosing to lease when they couldn’t find the ideal home to buy after selling and those needing to right size their homes for a multitude of reasons have been filled with jolly closing dates.  Cheers to these celebrations and successes in real estate for all parties involved.

Happy holidays and best wishes to all of you for peace, health, happiness and abundance from my family to yours.  Grateful for your business, your referrals, friendships and to the exciting times that are being experienced now and heading into 2018 in real estate and beyond.

– written by Connie Power

Connie Power is a Real Estate Sales Representative SRS® ABR® SRES® and Mentors and Develops New Real Estate Sales Representatives for RE/MAX Hallmark York Group Realty Ltd.,  Brokerage serving York region and beyond. 

Empowering you in Real Estate, Call Connie today to make an appointment to discuss your next move at (905) 726-0856.

**Not intended to solicit those currently under a real estate contract