Skip to main content

What I expect of the Spring 2021 Real Estate Market .....

We are starting to hear that the big banks and other financial institutions are calling for government intervention in the very active Ontario real estate market. This last year has seen multiple offers and record pricing although under the rules of Covid no one is to engage in visiting listed properties unless a move is essential.  What is driving the activity? The most obvious reason is the low-interest rates but there is also a mass rethinking, driven by Covid, about how and where we want to live our lives.  And, also, activity drives activity - potential sellers see the price their neighbour got and they too jump into the market.  

Does the market require an intervention?  I worry about affordability and I think of what an increase in mortgage rates will do to homeowners who stretched a bit too much to make that purchase.  I think a move to taxing capital gains on residential properties will only penalize seniors who have already been hurt by low-interest rates on their retirement savings.  I also don't think that approach will help this market. I suspect we will see increased testing of a new buyers' ability to purchase and maintain their mortgage commitment.  I welcome that approach. 

So this spring I expect to see a continued low inventory of properties available to purchase and continued multiple offers.  I also think that we will see the banks being even more careful about extending mortgages and buyers (and their Realtors) should absolutely ensure their financing is solid and offers will line up with appraisals.  

If you are planning to purchase this spring speak to a very good mortgage broker and take their advice. Prepare! 

If you are planning to sell, ask questions when those offers come in - how is your buyer financed? 

As always, I am here to help. 


Comments

Popular posts from this blog

My Favorite Hamilton Food Blogs

Surfing thru local blogs is a great way to get a feel for the City and hear directly from the voices who live here. Here are a few of my favourite food blogs: Hungry Hammer Girl Restaurant reviews of Hamilton, Ontario and surrounding area. From a food lover, a world traveller and an-at-home-chef this blog will hopefully give you a good sense of a place and whether its somewhere you'd be interested in visiting.   Link to Blog: Hungry Hammer Girl Hamilton Eat Local and the Good Food Box Articles on local and high quality food sourcing. Good lists of links to local food markets, cafes and restaurants. Link to Blog: Hamilton Eat Local I heart Hamilton An all around fascinating cultural blog with the theme ' be a tourist in your own town'. Has a food label for our specific topic search. Link to Blog: i heart Hamilton un haricot vert A foodie's very detailed review of restaurants throughout the Hamilton area . Link to Blog: un haricot vert