Real Estate Round Table With Michael Beatch
How To Navigate Through This Buyer’s Market
It’s no surprise that southern Saskatchewan has definitely felt the pinch this past year, and the real estate industry was no different. There were many factors that attributed to our Buyer’s Market, including our economy and consumer debt records. But the biggest blow came like a one-two punch when the federal government implemented the new mortgage stress test rules and the provincial government now collecting PST on new builds. This significantly reduced the buying power of those potential home owners, and in many instances, put plans of purchasing on hiatus, or stopped them all together.
So What Is A Buyer’s Market Anyway?
Simply put, it’s when there is more supply of properties that the demand can keep up with. As a result, houses typically sit on the market longer and tend to sell for less due to the oversupply and lack of demand.
What Are The Advantages For Those Looking To Buy?
- You have more selection to choose from and generally have more time to make decisions.
- You will have more power at the negotiating table to set out the terms and possession dates that work best for you.
- There may be more room for you to negotiate on price.
What Can You Do If You Are Selling?
- Get your home as show ready as possible. That means doing any necessary repairs ahead of time and have it looking its best for showings. You need to stand out in the sea of competition. If you don’t complete this crucial step, you’ll feel it at the time of negotiation or it may sit longer.
- Price it properly. This isn’t the time to set significant buffers or “feel out” the market. If you are not close to market value, be prepared to sit well over the average days on market.
- Manage your expectations. The new norm in the city is to have homes sitting on the market for over two months and the chances of getting full list are incredibly slim. You may have to compromise on conditions and terms that was once up to you in balanced and seller’s markets.
But it’s not all doom and gloom for those sellers out there. We are finding that in certain price points, neighbourhoods, and specific styles of properties are still highly sought after. And if your home is in good repair, shows great, priced properly, it could still go rather quickly. There may be a lot of properties for sale out there, but the quality may be sub par.
By Michael Beatch ~ JC Realty Regina
306.527.6922 | firstname.lastname@example.org