What’s going to happen in the 2013 real estate market?
If we actually had a crystal ball we’d hand out the winning lottery tickets too. It’s a very popular question this time of year. But let’s step back for a minute.
Why should you care or worry?
You should if you are in any of the following situations:Selling to downsize and depending on equity for future income. Must sell (i.e. relocation) or access equity by selling or refinancing. Not currently in the market but planning to buy in the near future.
And what about all the reports saying the bubble is going to burst?
The minute there is a decline in sales or prices, the headlines start cranking out. And of course everyone has their version of the drama. Your barista tells you to sell, your father in-law says to stay put and don’t forget, the sky is falling too.
So our caution is to consider the source – a newspaper trying to make headlines? And the context – are you a detached home owner in the Beach or a condo owner in Calgary?
Our crystal ball says…
The fall market definitely felt like it had the rug pulled out from under it. Uncertainty with the election in the U.S. and the fiscal cliff didn’t help.
Many buyers said they would hold off to see what happened. The balance of supply was also out of whack compared to the past so buyers who were ready to buy were competing for limited inventory, driving prices up.
Sellers were thinking they should still be able to hold firm at spring of 2012 prices. But unless a home checked off all the boxes for the majority of buyers, a lot of listings outside of the sweet spot of a certain price range or wish list sat on the market.
To that end, our feeling is that there is pent up demand from the fall. Supply is traditionally low this time of year so our recommendation is to LIST EARLY to capture this market. We are already seeing multiple offers on listings in core Toronto markets and it’s only January.
And with the Bank of Canada just announcing that they have no plans to raise interest rates, buyers will feel more comfortable coming out of the woodwork.
If you are trying to figure out what to do in 2013’s real estate market, we are happy to chat with you about your specific home and objectives. Depending on your situation, this market could hold a great deal of opportunity or it may be time to hold off.
Either way, become as educated as you can about what is happening in your market before you make a decision.
So what’s everyone else saying?
While everyone seems to have an opinion, here is a collection of what a numbers of sources are saying…
Click on the images for the full article.“For now, anxious sellers in the Toronto real estate market who are hoping for a spring rebound seem evenly matched by optimistic buyers looking for a deal.” “It has become the new mantra of real estate watchers — there’s no crash coming, just a soft landing and an ever-so-minor correction in prices.” “Continuing the trend from 2012, the low-rise segment of the market experienced the strongest price growth as competition between buyers remained quite strong,” “This week presented a refreshing change: three separate stories on how and why the city’s real estate sector is still alive and, in the case of commercial property, in hot demand.”
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