Look around. Pause. Contemplate the glowing embers of the summer of 2017. The summer that never was. No hot humid temperatures. No drought. No real bugs. No deals to be had, if you happen to be searching for a house.
As we head into the fall season, this Quinte area Realtor is enjoying a welcome pause in the craziness. Our government has been working hard to protect Canadian homebuyers from themselves and has implemented a number of new mortgage lending rules and taxes since the spring. This has effectively cooled the overheated real estate market that our neighbours to the west have been enjoying…or suffering through, depending which side of the negotiations one finds themselves on.
Before things tightened up too much, the Quinte area enjoyed an influx of buyers who were ‘cashing out’ of the Big Smoke and heading east to Bay of Quinte Country. This, combined with a serious lack of homes for sale, created quite a frenzy. Most of our area builders are now swamped with new home contracts. Nicely maintained or renovated resale homes and investment properties also moved quickly and sellers enjoyed multiple, competitive offers on their homes while buyers (and their Realtors) wrote offer after offer before finally ‘winning’ the home they wanted.
While at first glance it would appear that the local real estate market is cooling off, pause to consider these 3 observations if you’re considering buying or selling in the next 6 months:
There are still not enough homes on the market. The Quinte and District Association of Realtors reports that across the Hastings and Prince Edward County regions, compared to this time last year ago, there are over 1,000 fewer (resale) homes listed for sale across all price categories. The average listing time for homes sold in April of this year was 16 days, and our August listing time frame is only 19 days. It remains a Seller’s market.
There are not as many buyers looking. This may be obvious…late summer is typically a slower time for real estate sales, and coupled with the sudden influx of homes available in the GTA at more affordable prices, many of those who were considering a move eastward have opted to stay put for now. While we still see some homes selling for over the listed price, the volume of competing offers has dropped off compared to a couple of months ago. Some homes are even selling at or below list price. Buyers who are looking at homes through the fall season and into the winter are serious, motivated, and ready to move. Well maintained or updated homes that are priced according to market value are still moving quickly.
Most area builders who build custom subdivision homes are sold out until at least the middle of next year. If you currently live in a newer home in a desirable subdivision development, you should know that there is likely more than one buyer who would love to purchase it. If you are a buyer you may want to ask your Realtor to watch for a ‘nearly new’ home to become available in the neighbourhood you’re hoping to move to. Maybe a more rural location will suit your needs. Now might be the time to purchase a rural building lot. Your investment will very likely appreciate while you wait for your preferred builder to get caught up.
I could discourse on all of the other factors impacting the real estate market as we head into the fall season, however this post is already too long. Suffice it to say that historically, home prices don’t go down. Market corrections are a real thing, but they are short lived. Motivated buyers are still looking for homes in the Quinte area. Well maintained, well priced resale homes in our area are still selling quickly.
There is an ancient proverb that says: The best time to plant a tree was 20 years ago. The next best time is today. Apply that to your home or property investment decision and then contact me! I would be happy to help you make your next move.
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