Why This Summer Is The New Spring
Many families put their real estate plans on hold due to the COVID-19 pandemic. However, with stay-at-home orders starting to gradually lift, data indicates real estate related activity is on the rise. So it seems what we once called the busy spring market, might now be shifting to the summer.
This summer could be the new spring market for real estate.
According to Google Trends, which scores search terms online, searches for Homes for Sale has been steadily increasing.
According to my personal analysis of real estate activity reported through the Toronto Real Estate Board, our market has been seeing a steady increase in average sold prices, units sold and new listings.
Note: For week ending May 24th, 53% of the freehold properties sold at list price or more.
Need more proof? Broker Bay, a real estate brokerage software company, reports an increase in property showings and registered offers.
What’s the Opportunity for Buyers?
Prices: Currently, home prices are 5%-10% lower than they were earlier this year, before the health crisis, when the market was experiencing record prices.
Interest Rates: Another reason buyers are coming back to the market, even during this health crisis, is historically low mortgage rates.
With mortgage rates at such low levels, and our city gradually beginning to re-open, there’s more incentive than ever to buy a home this summer.
What’s the Opportunity for Sellers?
Prices: Although prices are down from earlier this year, pre-health crisis, they are still higher than they were a year ago (4%-9% approximately).
Few Listings: This spring sellers removed many listings from the market. Although more people are now putting their houses up for sale, current inventory is still well below last year’s level. Finding a home to buy is still a challenge.
If you’re thinking of selling your house this summer, now may be your best opportunity. With so few homes on the market for buyers to purchase, this season may be the time for your house to stand out from the crowd.
No one knows for sure what to expect in the coming weeks and months, but the current data shows positive increases in home prices and activity. There could be some action this summer!
As trusted and experienced real estate professionals, we have been helping families list and sell safely and effectively throughout this health crisis, keeping our client's needs top of mind.
We are available for a chat anytime. Call or text me directly, Santo 647-298-5491.
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