The daffodils are out, and there is a definite hint of Spring in the air. However, looking back on a year where we have added the words “bubble”, “pandemic” and “lockdown” to our vocabulary, I don’t think anyone could have written the script for 2020. And although we have returned to Level 2 momentarily, for the most part, life is starting to take on the familiar sense of normality we are accustomed to.
The same can be said about the Real Estate market. The year started on an undeniable high with record sales months being recorded nation-wide. Then as Covid-19 took its toll, there was an immediate “V” shaped impact on the property market. Now as we exit the busiest winter I have ever experienced in my 15 years in the industry, there is a renewed confidence in the Real Estate Market.
There is no doubt that the wage subsidy has helped immensely in keeping our economy moving forward, but even when the wage subsidy concludes, I don’t predict this to have a negative impact on the resurging property market we are experiencing now.
Instead, I believe the most important factor in the positive Real Estate market has to be the historically low interest rates, which are only expected to stay at this level, if not drop further heading into next year. House prices really only tend to fall when people are forced to sell their homes because it is unaffordable to continuing paying a mortgage. But with rates this low, it is as cheap, if not cheaper, to own your own home compared to renting in many cases.
Furthermore, one cannot deny that we are in the middle of a “Seller’s Market” right now. This means that the demand for houses is not being matched by the supply of homes for sale. In this type of market, many homes will sell at slightly higher prices than they may have a few months ago; some homes will achieve a premium price. This helps keep the property market buoyant.
As we enter Spring, it is inevitable that a traditional Spring market will come into play, and the property market will soften a little as more homes come up for sale and demand is slowly matched.
However, I believe that the market will remain stable as we head into the final months of the year. As 2021 makes its emergence, I predict that the market will be back to where it was pre-Covid.
So, what does this mean if you are thinking of selling a home today? Our advice remains the same. It is still an optimum time to be selling your home. Wherever possible, we recommend marking a property sooner rather than later to maximise the potential competition of buyers.
For the buyers, buying a home is a highly emotional decision, so I encourage you to follow your heart, and if you find the home you love, buy it.
We would love to help you realise your property dreams, so please get it touch.