Why Selling this Fall May Be Your Best Move
Thinking about moving? Selling your house this fall might be your best move. If you’re still on the fence, here are some highlights from the housing market in 2020 that might make your decision to sell this fall a bit easier.
People Are Buying
Wise investors will tell you, “buy when others are fearful, and sell when others are greedy.” Home buyers are going crazy this year. We’re seeing numbers that we haven’t seen in over a decade.
Matrix, our local MLS software and market stat service provider, shows that buyer transactions jumped 75% compared to this time last year. That’s a huge increase. We are seeing an increase of traffic on our listings by over 200% compared to this time last year.
Here are some of the reasons this is a sellers market:
tighter lending conditions, but no shortage of qualified buyers
low interest rates and larger mortgage approvals
low housing inventory, and
good old fashioned buyer FOMO (the fear of missing out)
If there was such a thing as a bunny hill for home sellers, right now would be it. Bidding wars are back, so you can practically dictate your own terms, then sell quickly at a high price.
You may want to take advantage of these great conditions and sell your house on your own terms. If we see the economy recover quickly, we may see more sellers come to market and take away your window of opportunity.
Inventories Are Low
According to the Okanagan Real Board’s latest report, there were only 2282 units available for sale in August. Active listings were down to 2100 at the end of September, a 13% drop since last year.
6 months of inventory is typically considered a balanced market. Right now we have 3.5 months of inventory, which means there aren’t enough homes for sale to satisfy the number of buyers.
It’s ultra competitive right now. Pre-approved buyers are doing everything they can to find homes, sometimes even skipping the inspection process and going straight to bidding.
There’s serious housing FOMO right now.
Nothing Lasts Forever
Once you’ve been through a few market cycles you learn to feel the change between greed and fear. Big cities are often the first places to show weakness in the housing market.
In Toronto, Canada’s largest city, new condo listings are starting to outpace sales in 2020. Sales to new condo listings are down 24% for September and rents are down 14.5% for the quarter.
New condos are on the market, but nobody’s moving in. “It’s crazy slow,” according to Beth O’Donoghue at Brad J Lamb Realty. A UBS survey suggests that Toronto is one of the world’s most overvalued markets.
But meanwhile in suburban Toronto and the rest of Canada, single family home sales are booming. In mid sized cities like Kelowna, some experts say home prices are undervalued.
There’s a clear trend from urban to rural housing, but mixed signals make it hard to call what happens next.
If you look away from the stock market indices, which have virtually recovered their pre-COVID valuations, things aren’t looking as rosy. In January 2016, well before COVID reared its way into our lives, global debts hit all time highs.
The economy was already feeling slightly uncomfortable, but now we’ve hit peak uncertainty.
Think About Yourself
Putting aside prices, the times are changing and it might be time to move for you. If you’ve outgrown your nest, downsizing now can mean upsizing your lifestyle.
For everyone else spending more time at home this year than ever before, being comfortable is seriously important. If you work remotely or your kids take virtual classes, you might have a sudden demand for new office space. You might also want to grow a garden, start your passion project, or just ditch the crowds.
Make sure you have enough room to live well.
If this year’s housing activity is any measure, Okanagan homes could be the juggernaut that stands through our economic headwinds.
But if you’re thinking about selling your home, market conditions are prime for maximizing your revenue. Partnering with a good agent means you’ll get top dollar, sell quickly, and avoid any snares along the way.
You might be surprised what your home is worth in today’s market.
To start the conversation and receive a free consultation on how to maximize the value of your home, click here and let's discuss your goals over a virtual coffee.