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As of March 12th, 2020, the rapidly evolving Covid-19 Pandemic is understandably a concern on everyone’s mind. We want to briefly share how Team Bush – Your Home Sold Guaranteed – Home Selling Team want to reassure everyone that as far as the Real Estate Market is concerned, it is business as usual. We are always keeping an eye on the latest news and real estate market.
First, our office has taken proactive measures to sanitize our offices and have provided hand sanitizing stations at our entrance and in our office as well. If you are concerned about leaving your home, please know that we can come to your home if that makes you more comfortable. Also, with our expansive technology, we can also meet virtually via online video services. We have also implemented social-distancing so this means that when you visit our office, we will ensure that we can still assist you while maintaining a safe space.
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You may be asking, how is the Coronavirus Pandemic affecting the Real Estate Market?
The Real Estate Market as of February 2020 has been red hot in the Golden Horseshoe. It is still and continues to be a Seller’s Market. With interest rates recently cut, and inventory increasing daily, buyers are in a great position purchasing a home. Home owners are also in a great position as home values have increased over last year. The average price of a home in Hamilton last month was $588,817, up from $518,259 in February 2019.
We have seen an increase in the demand for homes. So, thinking that the Real Estate Market is going to shut down is false. In fact, our Appointment Center has reported that the number of appointments booked has increased over 22%. That is a leading indicator at how many people are actively looking to buy their next home. Agents on our team are showing homes to clients and writing offers for clients so we have not seen a pull back at all.
Also, last week, the Bank of Canada announced a prime rate cut to 1.25% amid Coronavirus concerns. Then on Friday, March 13th, 2020, the Bank of Canada dropped the prime rate once again, and it is now down to 0.75%.
The central bank said Friday the unscheduled rate decision was due to the pandemic and its impact on the economy, adding that lower oil prices, even since its last scheduled rate decision last week, will also weigh on the economy.
“It is already clear that the spread of the coronavirus is having serious consequences for Canadian families, and for Canada’s economy,” governor Stephen Poloz said.
COVID-19 primarily, with collapsing oil prices also a significant factor. This virus is having a huge impact on world economies, and Canada is not immune. As other economies are faltering, and governments are having to take drastic measures to support their economies, the BoC stepped in with some support.
Basically, variable mortgages are low-rate, fixed mortgages are low-rate, so the time is right to buy or refinance. Although fixed mortgage rates are not linked to Prime, they are affected by general economic factors, particularly bond yields. Falling bond yields last week meant insured mortgage rates moved as low as 2.29% for 5-year terms, and low fixed rates are likely to stick around for a while.
Is the Coronavirus affecting my home’s value?
There are a lot of factors that affect the market value of a home. 1. The amount of supply in the market and 2. buyer demand. We are currently in what we call a “Sellers Market”. This means that there are more people looking to buy a home which increases the demand for homes.
For some home owners, they are thinking about selling the home in urban, populated areas, and moving to a rural, off the grid, home due to fears of the Coronavirus. For many others, they are concerned that the value of their home will decrease due to lack of buyer demand.
We have seen an INCREASE in Home Values year over year and this has not changed in 2020. In fact, the Golden Horseshoe area has seen a significant increase in average price. Overall we are firmly in a seller’s market with greater demand at certain price points, specifically below $600,000. We have also seen an increase over last year in the number of properties listed for sale.
If you would like to see What Your Home Is Worth, we have a Free Quick Online Home Evaluation where we can show you what homes have recently sold for, how long they were on the market, how much they sold for and which homes are currently for sale in your neighbourhood. Go to www.HamiltonHouseValues.com to get your free online home evaluation.
Is it the right time for me to buy a home?
There are many factors that buyers need to consider if it is the right time to buy a home. As we mentioned above, the interest rates have fallen so buyers can qualify for a larger mortgage, they can afford a larger home then they could have weeks ago. This puts home buyers in an advantage during this maybe temporary low interest rate environment where they go out and purchase a home of their dreams where before this wouldn’t have been possible. It would be good to get in touch with your Mortgage Broker to see what position they are now qualified for and update their home search criteria. If you have not yet been to the bank or met with a Mortgage Professional, contact us for our list of recommended Mortgage Professionals that will help you get Pre-Approved.
Home buyers can rest assured that our Team is prepared with our Priority Access VIP Buyer Program, we can provide you with access to Bank Foreclosures, Company Owned Properties, Distress Sales, Pocket Listings and homes that are not yet on the market. This is a free service and of course, never obligated to buy anything. We ensure that our Home Buyers get the VIP treatment regardless of current world events. If you would like to see what homes are currently for sale in Golden Horseshoe within your specific criteria, go to www.viewgoldenhorseshoehomes.com
We can assist you with all this, so give us a call at 905-297-4885. We are happy to answer any of your questions!
