Very interesting times in the real estate market right now. This past week there was very little action, almost zero homes of interest came on the market. Although out now is our new 4-part blog series looking at minimalist living. Part 2 was just released (see below posts). I hope you find it interesting and informative!!
Recently, I have been talking about the benefit of selling your home in late August, specifically listing it last week. Well that strategy continued to bear fruit this year, even in an uncertain market. Three homes I viewed last week sold quickly and well. A home on Euclid in particular sold for almost $200K above asking, which is a number I would have only expected this past spring.
Another one of the homes I viewed last week was a home on Palmerston. In my mind, I was using Palmerston as a bellweather of sorts to indicate where demand is. Homes needing renovation haven’t been moving and Palmerston needed to be gutted. It was also small for a family, although located in a very attractive, family friendly neighbourhood. With a high reno cost, it was not a house you could easily make a business case for unless you envision the market bouncing back. Speculators have been driving the Toronto market for many years and that’s who this house, in this market, was best suited for. The house sold in 1 week for. This is an indicator (however slight) that we aren’t in for a major correction downtown as investors seeking value may pick up the slack in the freehold market.
In the news, the economy continues to chug along with GDP blowing past economist expectations in the second quarter at 4.5% (3.7% expected). This makes another interest rate hike this fall more likely and may bring some buyers back to the table sooner. Longer term, higher interest rates are negative for real estate prices and if they move higher quicker then expected, it is possible we see a temporary spike in demand.
The most likely scenario moving into the fall season is a more balanced market with competition on quality, single family homes. I wouldn’t spend too much time worrying about factors you can’t control. Be ready for the right home that is affordable, regardless of how fast interest rates rise.
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