Ok, so interest rates did not go up in October but the question is….where are all the buyers?
Some on the fence, some are just not ready to get into this market and many are having issues qualifying.
Inventory and Sales...
I am sure you have noticed lots of open house signs on weekends as the inventory is up 16% to 35%. The sales vs October 2022 are down 24% in Oakville, 18% in Burlington & 9% in Hamilton. In terms of YTD home prices, we are down across the board ranging from 1% to 11%.
Adjust and Prepare...
This year has been all about adjustments and forgetting about that one lucrative time where homes were selling for hundreds of thousands over asking! Thank goodness those days are gone and prices have come down to a realistic value. The issue is affordability and working within the budget that you have. Rates will go down in 2024 and we need to be ready as many buyers will be back and hopefully heavy inventory will off-set bidding wars.
Good News for Homeowners...
The good news for homeowners if you have lived in your home since 2020, values are still up! Detached is up 9% to 10%, Townhouses are up 9% to 13% & Condos are up 7% to 10%. As long as we are up around 5% to 7%, that is fair and realistic.
Your Realtor is your Quarterback...
If you are a buyer in this market, you should be able to negotiate good deals out there anywhere from 4% to 6% below asking as long as you have a solid Realtor who knows the game inside out! Don’t settle when choosing your Realtor and make sure you ask them about they handle slow & challenging markets like the one we are in right now. Ask them how will they not only get you top dollar for your home, but how did they come up with the price and marketing plan. This is critical as you need to have your ‘ A’ Game in order to get through this market!