\
We’ve finally got our first market update report of 2023. A few things have changed since January rolled around and the biggest change of course was that the Bank of Canada has increased its rate once again by 0.5 percent. This was widely expected by consumers and economists alike. On a more positive note, it’s unlikely the Bank of Canada will be increasing their rates at the next announcement, which is certainly going to be spurring a lot more interest in buyers who have been hesitant to get back into the market. What we’re generally seeing across the board is prices are staying relatively stable, but we are seeing a significant drop in inventory.
This is likely due to the fact that there have been numerous sellers that have tried to list and sell their property with no success and now they’re just pumping the brakes a little bit and saying “Okay, you know what I’ve had the property on the market for six months, let me take a little break and then maybe I’ll get back to it again in the spring”. While having lower volume all around, the fact remains that there’s always going to be buyers that need to buy, and there’s always going to be sellers that need to sell. Naturally, there’s a silver lining for buyers and sellers who are aware of the more intricate details of the market.
Sellers are in a position to capitalize off the low inventory that we have seen since the start of 2023. Remember what I said? There’s always going to be buyers that need to buy….and with low inventory, good options are few and far between in some communities. Just last week we were involved in two multiple offer scenarios on properties. One of them had three offers, and the other had six offers on it! You might think it was priced well below market value, but it was actually listed for $1,450,000 which was on par for what has sold in the area. If you saw its “competition”, you would know why so many buyers jumped at it.
It’s a great time to be selling your house in the winter of 2023 if:
- You live in a sought-after community.
- You have a large property.
- You are in a desirable school district.
- Your home is move-in ready.
- You are pricing it AT market value.
Number 5 on the list above is an absolute must, and if you have 2 of the other 4 items, then this is one of your best opportunities to maximize your value.
For buyers, although the Bank of Canada increased their rates in January, the Five-Year fixed rate has actually come down quite drastically for most lenders. I’ve had buyers get it for as little as 4.69%. Yes, that rate is still higher than what it was in early 2022, but when you factor in the correction in prices, you are at a point where monthly expenses are relatively similar, and you are carrying less overall debt.
If you haven’t already locked in your mortgage rates, talk to your mortgage broker so you can secure the current rates for 90 to 120 days. It will give you a little bit of comfort and flexibility in knowing that if you purchase within this time frame, you have this rate locked in, regarding if interest rates rise or not.
It’s a great time to be purchasing right now for buyers who:
- Have mortgage rates locked in for under 5%
- Are looking to upsize from a townhouse into a detached home.
- Have had an increase in their annual incomes/N.O.A
- Are looking for a “fixer-upper”.
You can access the market reports for what sold in January 2023 by clicking the links below. Our lines are always open, and if you would like to get a more in-depth analysis of the market and how you can benefit from it, you can contact us for a meeting anytime.