Strategies to navigate a real estate market on the move
According to Greater Victoria Real Estate Board (VREB) data, buyers rushed to capitalize on slumping home prices across all categories spurring vigorous mid-January sales, a trend that is continuing.
In a news release, VREB Chair Graden Sol reported, “We did see a mid-month surge in activity as buyers seemed to regain confidence after the rapid interest rate increases of last year. It may be that consumers are moving past the market shock of the rate increases and economic uncertainty and that our market is regaining its equilibrium.”
That doesn’t mean that sellers are losing, or that buyers are making all the gains. It means that negotiated deals are getting done. The key for those on both sides of the market is that seizing the moment requires acting strategically to achieve specific goals.
For buyers, making a good deal involves more than a sharp price. Choosing a mortgage wisely is always vital, and should factor considerations beyond interest rates.
Mortgage professional Leslie Denko of Sidney-based Mortgage Alliance Cutting Edge Lending says when it comes to mortgage terms there is no “one-size-fits-all” formula.
“Regardless of the current interest rates, I am an advocate of finding out what is important to my clients before making recommendations. Would the possibility of a fluctuating payment keep them awake at night? If so, then an adjustable or variable rate mortgage is not ideal. Are they on a fixed income, pensioners, or starting a family? These and other variables influence my recommendations.”
Denko firmly believes that a mortgage should not be a source of stress. “You should be comfortable with your mortgage payment and have a buffer built in for the unexpected. Fixed or variable, short or long, it all depends on your unique circumstances.”
Just as importantly, she notes there is much more to a mortgage than its interest rate. “Some penalty clauses are ruthless. It’s important to understand the terms and conditions of what you are signing.”
My advice – and as Denko’s thinking illustrates – working with a mortgage broker is a smart
way to not just secure financing, but to achieve more fulsome success.
When it comes to selling a home, sharp pricing is particularly crucial today. As VREB data shows, and by my own experience, buyers have come off the sidelines looking for deals.
In this environment, an excessively high price risks a property stagnating on the market until subsequent price adjustments eventually garner buyer interest. On the other hand, setting a price signal designed to attract buyers will give both parties an opportunity to negotiate.
Regardless of the short- to mid-term market dynamics, Saanich Peninsula and Greater Victoria buyers and sellers should take comfort knowing that we live in one of Canada’s – and the world’s – most desirable places to live.
With more than a half-a-million new Canadians expected to arrive annually in the coming years, and housing inventory at record lows and unlikely to meet persistent demand in the foreseeable future, real estate remains a solid, long-term bet.
Want to make your best deal? Randall.Mang@EVRealEstate.com / 604-817-6204.
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