Well, in my personal opinion it’s here. The Real Estate Buyer’s Market and it is time to take full advantage!
Just as Home Sellers were able to capitalize in the past few years, especially in 2017, Home Buyers now have the upper hand to negotiate hard!
‘ A buyer’s market is a situation in which supply exceeds demand, giving purchasers an advantage over sellers in price negotiations. ‘
It is clear we have entered into a Hot Buyers Real Estate Market!
With over 900 Listings on the market in Oakville, both For Sale and For Lease, this figure now sits at an all time high. We know for a fact that the real estate market has changed dramatically since the new rules and regulations have recently come into effect from the big banks.
Since the hike in interest rates, the stress test imposed by lenders and several other key factors, buyers have become quite cautious/frugal in their vision to purchase a home. Many home buyers are taking time to analyze the market properly before they rush into any home purchase. They are researching more, strategizing with better options and solutions, searching in different neighbourhoods and getting facts from different realtors to see who will negotiate hard for them. Many of these buyers are patient and are waiting for price drops in certain neighbourhoods, negotiating hard with their realtors for perks and packages. Many buyers are entering the market with high standards like never before! And why not! Sellers did the similar in the first two quarters of the year in 2017 and capitalized big on home equity. Well, now it’s the buyers turn to WIN BIG!
In the 2017 Spring Real Estate Market, buyers were faced with the added stress of taking out Finance Clauses and Home Inspection Clauses if they were competing in multiple offers and bidding wars. Many over paying for a home by up to $500,000 and in some cases in the city over $1,000,000 over the asking price. This is no longer the case now. Buyers are now protecting themselves like in the past and if not, Realtors are not guiding them properly.
I still believe that during this period of adjustment, there is an abundance of home buyers out there just waiting. While there is still an abundance of homes on the market, many are waiting for more of these price drops. However, when prices drop, rates climb. This is a fact.
Here are a few things for Home Buyers should take advantage of and are pretty much standard in this changing market:
#1 Ensure you have more than the required downpayment of 5%. To avoid the CMHC Fee, ensure you have more than 20%, this would be ideal to avoid any further fees that could affect your qualification.
#2 Ensure you have money left over in the bank to pay for legal fees, real estate commissions, if any, home inspections, closing costs, moving fees, land transfer tax and others.
#3 Ensure you protect yourself with clauses as Finance, Home Inspection, Status Certificate if purchasing a Condo, Lawyer Review, are to name a few.
#4 Look for the best negotiator who will take care of your best interest first!
#5 Before you waste your time or anyone’s time, or even get your hopes up, speak to a qualified Mortgage Lender to determine your qualification and lock into still low interest rates available today! ( this should actually be #1 )
If you would like any assistance in the home buying process, give us a call today, we can help. With over 26 years of experience helping home buyers and home sellers make solid investments, we pride ourselves in making our clients WIN BIG in any market. Call us today 905 399 5910!
Wayne and Virginia Munden