COVID-19 and Guelph Real Estate

COVID-19 and Guelph real estate

Questions you may be asking.
I would like to start by saying I hope everyone is safe and healthy and doing their part to help the world get back to the freedoms we are accustomed to so we can once again live fuller lives.
In this tailored world of self isolation and social distancing, a lot of people may have put real estate goals on hold out of choice, or perhaps financial uncertainty, or just from being unsure of what they can and can’t do.
I’ve tried to answer these questions as best I can below, keeping in mind this is new territory we are all navigating through, but I do think better days are ahead. I think we will all be surprised at how soon we are looking back on this stressful time and feeling more lucky and grateful than we ever have before.

CAN I STILL BUY OR SELL A HOME?
Yes, and yes. Although the protocol may have changed, the adjustments most realtors are making have the safety measures people need, and homes are still selling. It’s not as leisurely as it was before, where we took for granted looking at 5 homes in one hour. The pre-qualifying online has gotten much better and the physical showings that are taking place are after the buyers are quite sure the property is for them. Less showings, but perhaps a more qualified buyer which is better for everyone, to be honest. The technology we are using now as a team which our clients can take advantage of is nothing short of amazing. Outside of reaching out and physically touching something, I actually think it makes for a more efficient process aside from my love of our face to face business.

Offers, home inspections, and even closing procedures with lawyers have all transitioned to a contact free process. However once again, aside from the relationship building that comes from meeting people in person, this makes for a more streamlined process. 

WHAT IS THE MARKET LIKE ITSEL?
At the start of the pandemic leading into March break, it was still very much all systems go, with many homes continuing to sell for over asking price. Two weeks into social distancing and the market was still very much alive with normal levels of not only new listings, but sales too. Our team was seeing 5 offers on homes and even though the number of showings seemed to be down, the buyers who were still looking had home goals that needed to be achieved. We took our job very seriously and felt we continued to lead and adapt to a new level of precaution for our clients to make sure not only everyone was safe, but that we could provide the high level of service people counted on and we were used to. The extra effort was appreciated and we always felt better doing it. 

The last 3 weeks has been a different story with precautions getting stronger by the day and showings becoming more and more limited. We also saw new listings dramatically taper off and then sales followed.

But that shouldn’t be looked at as a misleading stat.
After all, if there are no houses for sale, people can’t buy them. New inventory for April 2020 is down 33% from last year, and sales are down 67% comparing this April to April 2019 (keep in mind, at the time of writing, the month isn’t over, it’s currently April 17th). Once again, you need house listings to have house sales. 

IS THIS A GOOD TIME TO BUY REAL ESTATE?
I think it’s always a good time to buy real estate (I know that sounds cliche given my profession, but it’s true), and this goes around the support of what I have always said. Real estate is more about “time in, then timing”. The only challenges right now are house choices, so being patient is probably something that is needed and maybe even easy to do given the militating in our personal lives.

I do see a lot of value in upgrading right now, with certainly more supply in the higher end and that price point could have the most movement in terms of flexibility. Even in vibrant markets, the facts are the same; buyer audiences are built like pyramids- the further up you go in price, the fewer the buyers there are. In this more select market, we have seen sellers in the higher end show more flexibility towards getting the deal done, and in the lower price points, prices are somewhat stable. So that being said, the gap between your home and your next home may be a lot closer than you think. 

I will not pretend to be an expert on something I have never lived before or experienced. I do however, like to concentrate on what I know, and confirm my instincts with facts. Real estate is very important to people.
I know economic pressure will be felt, but the demand will still be there. Who knows what extended amounts of time spent at home will do either? Will people make commitments to their real estate goals more than before? Tough to say, I know for my family we have recognized some changes we would like to make given the amount of time we have recently spent inside our house.

In short, our team is doing the same thing we always have; trying to give valuable info to clients so they can make informed decisions.
We want to be viewed as community leaders in how we do our business and the support we give to others. I have always considered myself to be in the relationship business and want that mindset to continue with our clients looking to us for the thing we value most. Trust.

Stay safe everyone, and never hesitate to reach out for a chat.
 

-Hudson Smith
 
08 Dec, 2023
Navigating the real estate landscape Welcome to the first instalment of our monthly series dedicated to Baby Boomers and even some Gen X’ers navigating the real estate landscape and embracing lifestyle changes. In this series, we will delve into various aspects of the home-selling journey, offering valuable tips and insights specifically tailored to the unique needs of this demographic. The decision to sell your home as a baby boomer is often more than a transaction; it's a pivotal moment that marks a new chapter in your life. Whether you're an empty nester looking to downsize, seeking financial freedom, or simply ready for a change, this series aims to be your comprehensive guide. In this inaugural article, we'll explore why now might be the right time for baby boomers to sell their homes. From the emotional aspects of letting go to the practical considerations of market dynamics, we'll cover it all. Without further ado, let's dive into the first topic: Embracing Change – Why Now Might Be the Right Time for Baby Boomers and even some Gen X’ers to Sell Their Homes. As the winds of change sweep through the real estate landscape, many baby boomers are contemplating a significant life decision – selling their homes. While the emotional attachment to a home can be strong, there are compelling reasons why now might be the opportune moment for baby boomers to make this transition. Empty Nest Syndrome: The kids have flown the coop, and the once vibrant family home might feel a bit too spacious now. Downsizing can not only reduce maintenance costs but also provide a newfound sense of freedom and simplicity. Financial Freedom: With property values having likely risen considerably from the time you purchased your first home, selling and downsizing can provide a substantial financial windfall. If you are Gen X or Baby Boomer, this is a tremendous opportunity to bolster your retirement savings, embark on new adventures, or even assist your children with their own housing endeavours, while simultaneously simplifying your life. Maintenance and Upkeep: As homes age, the upkeep and maintenance demands can become more burdensome. Selling your home now could mean leaving behind the hassle of constant repairs and yard work, allowing you to enjoy a more relaxed and maintenance-free lifestyle. Shifting Market Dynamics: The real estate market is ever-changing, and keeping a close eye on current trends is essential. With high demand and low inventory in many regions, baby boomers may find themselves in a seller's market, potentially fetching an optimal price for their property. Even when the overall market has cooled, as it has over the past 18 months, there are always properties where it doesn’t matter what the market is doing, demand will always remain high with Sellers still fetching a premium for their homes. Lifestyle Changes: As Gen X or Baby Boomers entering a new phase of life, your lifestyle preferences may evolve. Selling the family home can open the door to new living arrangements that better align with current interests, whether that be a smaller residence, a retirement community, or even a travel-centric lifestyle. While the decision to sell a home is deeply personal, considering the current market conditions, lifestyle changes, and financial opportunities can help you make an informed choice. Embracing change and seizing the moment might just lead to a more fulfilling and comfortable future. If you feel you may be ready to embark on a new chapter, explore different living arrangements, or capitalize on the current market dynamics, or, you're a baby boomer that is contemplating the sale of your home, let's have a conversation. Together, we can explore your options, discuss market trends, and create a personalized strategy to maximize the value of your property. Contact me today to schedule a complimentary consultation. Let's turn the page and embark on this exciting journey together. Your next adventure awaits! Written by: Tom Hillson, Sales Representative
15 Nov, 2023
Purchasing a home in the current market In September there was a lot of talk on the return of the real estate summer slowdown. I addressed the concern and panic among some sellers in my newsletter, and how this shift is an integral part of the ever-evolving real estate landscape. This volume will focus on the advantages of being a purchaser in the current market. Healthy Market Stability: While the market's pace may have slowed down, it’s important to recognize that this is a sign of a healthy and balanced market. Buyers now have the opportunity to conduct thorough due diligence before finalizing a property purchase. Conditions like financing, inspections, and sale of property are back in play, allowing buyers to make informed decisions. Fixed Interest Rates: The topic of interest rates has recently experienced day-to-day fluctuations. With the Bank of Canada bond yields decreasing this week, we anticipate a continued reduction in fixed mortgage rates. It's important to note that bond yields and fixed mortgage rates have a direct connection. Meaning when bond yields lower, fixed interest rates decrease. Although lenders have begun to reduce their fixed rates, the decrease is not as significant as the fall in bond yields. Current rates for an insurable 5-year fixed are 5.75%. Lenders rates tend to take the elevator on the way up and the stairs on the way down. Overall this is excellent news for anyone with a mortgage renewal approaching in the near future.
By Hudson Smith 19 Apr, 2023
Real estate in Guelph I am not going to pretend I know what is going to happen, but with so many people asking me, it’s only fair I try. I mean, I have my opinions, and I will continue to make my personal decisions when it comes to real estate and investing based on them – and when my clients ask, I will share how I feel. So, how do I feel about the real estate market? Well, actually pretty good. And how did I feel last month? Well, pretty good. What about a month from now? Yes, pretty darn good. How can you feel good about something that so many are feeling bad about? Well, I am not quite sure that the owning of real estate, or the homes people want, or the investments they hope to make have people feeling bad; I imagine it is more about the new interest rates. Let’s look at the investment of real estate first. Whether you are renting it out or living in it, it is a choice of what to do with your money. For the people that are living in it, it’s great to know that it is an investment, because you have to spend money on housing regardless. When we look at any investment we always ask ourselves, “Does this make sense?” The simplest way I can look at real estate and answer that question is to say, I have a product and the people that want and need this product are growing, and the availability of this product does not seem to be doing the same. Describing it this way helps make the most sense to me. I guess I could say the same thing about Coca Cola, but there is Pepsi, Sprite, water, beer, and this Prime drink that my kids won’t stop talking about (don’t get me started). So real estate as an investment makes sense, as there is no alternative to housing. What about everything I am reading about prices going down? Well, real estate prices are going down now, since the rates people use to afford them have gone up. When the rates go down, you know the prices will start to climb again. The market is very healthy – I have been saying this for months. The reason we’ve noticed some homes not selling is due to the sellers adjusting their price expectations downwards slower than the buyers are. The sellers are still willing to accept the price of a spring ago, but the buyers are the ones calculating the interest rate. When rates go up that quickly, it’s hard for sellers to accept things fast enough, so buyers wait, and one by one new sales prices give data to sellers that say “You see, these are the new prices,” and a reluctant decision takes place by way of a price adjustment and then another sale happens. In the spring market of 2022 prices rose but when interest rates started to climb prices fell. Although real estate goals still existed, and people still wanted to invest, the falling prices is what grabbed the headlines, so that healthy underbelly lies just below the surface. Now here we are, in the early part of the year and what can sometimes be the barometer of how our real estate market will perform. How is it going? Well, the supply and demand levels have once again tipped in a slight favour of the seller, but buyers armed with a different interest rate are taking a more calculated approach instead of having a fear of missing out. To conclude, a properly priced home will sell, an underpriced one will sell for over asking, and an overpriced home won’t sell at all. You see, nothing to see here, just a regular old spring market in Guelph. Thanks for reading, and I thought this quote would be fitting. “When the market is greedy, I get scared. When the market is scared, I get greedy.” -Warren Buffet
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