March 1, 2018

Follow up: Slow Sales in Newmarket

Follow up note to my previous blog post:
what concerns me for my clients looking to sell and buy this year, is the number of new listings coming online, and the wave of new listings I am expecting in the coming weeks (after march break especially).
 
I see it this way. You have 3 options:
  1. sell first and then go shopping, or
  2. you make an offer that is conditional upon your home selling, or
  3. Buy a home and then sell your home.
Here’s the pros/cons with each:
  1. SELL FIRST: You might sell and not have a home to buy… But, you will know how much equity you have coming out of your home and are in a VERY strong position when negotiating your purchase. Worst case scenario, you look to rent something temporarily, and continue looking for a home to buy… further downside to that would be prices to increase while you are renting and it becomes harder to buy something you really like.
  2. CONDITIONAL OFFER: You typically have to “buy” that condition, meaning you need to pay more than you would if you didn’t have a condition for the sale of your home, as the Sellers are not going to be as interested in a ‘conditional offer’, but you also have the least amount of risk in this scenario… provided the Seller i willing to play ball.
  3. BUY FIRST: When you buy before you sell, you are typically buying a home you really want, and are typically feeling like you are not settling for anything either, plus you can also typically negotiate a better price than if you had to make an offer that is conditional upon your home selling, but you will be in a MUST SELL position if you can’t carry both homes, which can be stressful, especially if prices are declining.
Why I mention all of this is because I have concerns about the direction prices may be going with the expected wave of New Listings coming along with the FACT that the volume of sales has not caught up. I don’t say this to scare people into not buying, as you should do what makes sense for you or your families needs, but rather provide a little insight/forecast for what I expect to happen with the market factors at play:
  • Increasing interest rates
  • Supply outweigh demand
  • The biggest factor: Prices have decreased to the south of Newmarket, which means buyers who were forced north due to budget constraints last year can now buy in their preferred areas. This will also be a big reason why I can also see communities like Holland Landing, Mt. Albert, Queensville & Keswick see prices also decrease. (Someone who has $800,000 to buy a large 4-bedroom home was somewhat forced to look to Keswick, but now can find a home in Newmarket for that budget, which may be preferable for their family lifestyle).
Again, I’m not predicting a big decline in prices, but I also don’t expect the prices to spike up anytime soon either, unless it’s in a high desirable neighbourhood and the home shows extremely well.
 
Time will tell if I’m right or wrong!
If you want to talk about your Buy/Sell position, don’t hesitate to talk

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Posted by dtoombs at 6:36 AM

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