Why Is the Real Estate Market So Busy?

Why is the real estate marketing so busy?

Think about it, if I locked you in a room with the same food for a month, what is the first thing you would do when you got out?
Eat the same thing? Of course not; you would want something totally different – or at least hot sauce? As I struggle through a bad metaphor, I think you get it. Through COVID-19, people were forced to isolate themselves as much as they could where they lived, and aside from anyone affected economically, people decided to make some changes!

I made a Facebook post awhile ago when I was isolating my own family, mentioning that if you hadn’t booked a pool company yet, you’d better, because people who had this goal and procrastinated would be doing it.

Guess what, I was bang on.
I have no crystal ball, but as any family would through COVID, we identified everything we would like to change about our home. We even crunched numbers on buying something else even though we love where we are. Maybe a farm to spread out more, or renovate a farmhouse with a cool addition, build new on a piece of land… give ourselves more room outside.

I have always loved the investment side of real estate and wrote more than enough articles about the value of your principal investment and the great tax advantage that comes by making money through it.
But this time of self-isolation was compounded. We were home everyday, all day. Don’t get me wrong, we also appreciated the things we had during our “lockdown”. We have great neighbours who we talked to from a distance (and spent a good deal of time getting the kids to buy into the distancing thing). We appreciated that we had a pool, and have used it more than ever before.

There is a shift going on, and as life gets to this new normal, real estate is a big part of it
Renters are becoming owners, condo owners may be looking for something with a backyard, and some people with backyards are putting pools in them or moving to houses with pools or with enough space to put a pool in. People without elbow room want more. I see it the other way, too.

As much as I thought I had it all right with people wanting to change aspects of their homes through this, I thought cottages and vacation properties would be tougher sells. I couldn’t have been more wrong!
Traveling abroad may not even be on a person’s radar right now, but driving to one of Ontario’s amazing beaches, campgrounds or even to Northern Ontario might now top the list. I am a sucker for the rock, tree, and water combo myself. Some people are starting to save for, or beginning to buy places they can drive to, and enjoying all the toys that go with it! 

My family and I were fortunate enough to purchas our own little cozy cottage paradise last year, and it sure has been a nice option and change of scenery for us, especially with the lack of kid’s activities going on right now. Driving up there recently, my wife Amy, caught me in a RARE moment of an impulse buy… sure, we’ve talked and dreamed of it before, but this stretch of gorgeous weather had us talking Jetski’s, and we pulled into the first marina we saw to tease ourselves a little. SOLD OUT! Everything was sold. They still had a few tubes left to pull behind the machines, but the machines to pull them were gone. And all the kijiji ads for used Jetski’s I had looked at in weeks prior had turned into wanted ads.

This type of denial and unavailability of items wasn’t new to us either, since during the early parts of COVID we saw all the things we wanted to entertain ourselves at home sell out first.
Workout equipment, dollar blades for kids, even kids golf memberships sold out as local courses opened up. And let’s not all forget the toilet paper shortage in March!

What am I rambling about?! Well, I guess I’m getting to this. I think Canada, Ontario, and Guelph (as I know it best), are doing great. I’m sensitive to anyone experiencing difficulty through this chapter, and wish everyone well, but I’m also proud how we Canadians have adapted, lived for the moments we’ve had, and as the gorgeous weather has arrived people are going for it. Whether it’s finally getting into home ownership or buying that cottage they’ve always dreamed of. Families are spending more time together and that is a great thing. Boy, I miss my kids sports, but being able to fish with them more has been a blessing.

Although things are different right now, it could also be great for our fine province too.
Sure, people will travel again, but I can guarantee more people are camping, cottaging, golfing, fishing and hosting bbq’s by their new pool in their bubble of 10 a lot more. 

I hope everyone is doing something they love this summer, and if you are going after your real estate goals, feel good about it. It’s never been more important. And if you do come across a used Jetski, how about a heads up?

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
See More Posts
Share by: