The last couple of years have been the most hectic years in my career as a real estate professional. There has never been so much stress with buyers, sellers, and myself! But we have seen a bit of hope in the last couple of weeks and some sellers may be getting a bit nervous. They may just have missed the boat.
Obviously, nothing has been normal recently and this may just be a blip, but if you are thinking of selling you may really want to have that discussion sooner then later. There has been many world events converging together and it is no wonder that as the summer approaches that people are putting on the breaks and saying enough is enough. From crazy housing prices, interest rate increases, the cost of gas, COVID, and the uncertainty with in the war in Ukraine, I think people are now taking a breath! Who can blame them and I for one am happy with the shift!
The shift I am referring to comprises of several aspects… the numbers of buyers putting in offers has slowed, there is an increase in the number of offers with conditions, the number of houses not receiving any offers, and the number of houses selling at or under asking price.
These factors combined with houses now being listed at a more accurate current market value is a welcome change for many buyers.
Areas west of us, including Toronto, have started to see their average price decrease. Agents in those areas are reporting that some clients are not able to close on their new house. The bank appraisals no longer support the purchase price that buyers agreed upon. The bank will only extend a mortgage to whatever the appraisal comes in at… no more. Those buyers will need to come up with the difference in cash! This will cause a world of pain for many. Regardless of your ability to do so, you are legally required to close, and if you don’t, the penalties are severe! The ripple effect of this will be troublesome as many transactions could be involved.
I think at this time buyers and sellers need to be very cautious. Working closely with a knowledgeable agent who is keeping an eye on the market, as well as the trends will be key to a successful end.