A Shift in the Real Estate Market

Although we are still in a seller’s market, there has been a very perceptible shift. The transition happened very quickly due, for the most part, to rising interest rates.

Here is was the change looks like:

1. Reduced buying capacity
2. Increase in listings
3. Days on market increased
4. Fewer multiple offers
5. Sale will legal warranty will make a resurgence
6. Conditional offers will make a comeback (subject to sale of current home, home inspection)
7. Offers falling through due to rising interest rates and buyers no longer qualifying.

What this means for you

Buyers

• If you have a mortgage pre-approval, try to make a purchase before its expiry so as to take advantage of your lower interest rate and therefore higher buying capacity. FYI: variable rates are currently lower than fixed. Contact a mortgage professional to get an up-to-date account of where you stand. I work with some amazing people that I'm happy to refer you to.
• Take advantage of the reduced competition among buyers and the increase in homes for sale.

Sellers

• Be ready to adjust your price to stay competitive in the market place. If you remain overpriced, you are helping the competition look good. The Q1 frenzy of 2022 has come and gone.
• Set yourselves apart by selling with legal warranty giving more assurance to the buyer.
• Negotiate flexible terms and be open to accepting conditional offers.
• Repair and refresh the property.