If you have been following the housing market these past few months, you have probably started to realize that things have been hotting up and especially so in the single-family market. The market tanked back in March 2020 due to the Covid pandemic, but since that time the market for resale homes and in particular single-family homes, has strengthened month on month. This is especially true for the first quarter of 2021. At the time of writing, (March 26th, 2021) sales volume across Edmonton is around 30% UP compared to the first quarter of 2021, and sales prices are 7% UP, based on a blended first quarter average and 13% UP in March, compared to March of last year, (which is when the effect of Covid really kicked in).
If like most people you recognize the mid to long term value of home ownership, it makes sense to buy a home. but how can you make the circumstances work for you? How can you buy a home and still get a great deal in a market this is increasingly favouring home sellers? Read on…
1. Stale Listings
Most buyers focus on newer listings. This is where your competition will be greatest and currently, where you can expect to be involved in multiple offers, (sometimes called bidding-wars). Don’t be like most people. Ask your REALTOR® to scour the market for older listings, i.e., those that have been in the market for more than 90 days, or longer. In some cases, the seller will be starting to get tired of showing the home and may also be accepting the reality of their situation i.e., that they have been too ambitious on pricing and may now be ready to accept a discount.
2. Listings with History
Ask your REALTOR® to help you find homes with lots of history, i.e., home that have been listed multiple times for several years. Many of your competing home buyers will assume that a home with lots of history has problems and should be avoided. This is not always true. Sometimes the seller was simply not motivated enough and was perhaps too ambitious on pricing. If you can find a seller ready to accept reality, you could pick up a bargain.
3. Softer Market Segments
Yes, our market is hot, but not everywhere. If you are looking for a single-family home, ask your REALTOR® to help you identify ‘adjacent communities’ to those where prices are higher. By purchasing in a community next to one of the very attractive, hot and higher priced areas you can often purchase a home with substantially the same benefits, for a lower price. Due to the Covid pandemic of 2020 and 2021, the condo market and in particular the downtown condo market, has been dramatically impacted. Perhaps its because there is a flight to single family for space, I assume and condo living has become less attractive. The result is that condos across Edmonton and in particular downtown, can be purchased ‘for a song’. This situation won’t last forever. Again, ask your REALTOR® for advice as to which buildings provide the best opportunities and in a few short years, you could be sitting on a nice profit.
4. Desperate Sellers
How can you spot a desperate seller? Apart from stale listings and those with history, sellers sometimes openly advertising immediate possession, which might also represent an opportunity to buy at a discount. A word of warning here. Immediate possession might also be considered a ‘value-add’. Many buyers gravitate toward immediate possession because it solves their problem, i.e., finding a home quicker. In some cases, particularly for fresh new listings, you might be expected to pay more. Ask your REALTOR® to contact the listing agent and find out what’s going on, before you spend too much time focusing on these listings.
5. Fixer Uppers
If you are like most home buyers, you may want ‘move-in ready’. Again, it might pay to not be like other buyers. If you are willing to buy a ‘diamond in the rough’, perhaps a home that has not been renovated for many years, something with unique architectural features and in a great location, but just tired, you may do well. For the most part, your only competition here will be ‘home flippers’ and they need to create a profit margin. If you are buying for your own enjoyment, you can afford to out-bid the professionals and secure a lovely home for yourself.
To shop for ALL homes in the metro Edmonton area please go to our website www.AmbergateHomes.ca.
We have REALTOR® / Advisors standing by and ready to help you. Learn more about our team by clicking here: Ambergate Realty Advisors Team.
About the author:
You can read more about the author of this blog by clicking this link – Stuart Neal Broker Owner & REALTOR®.
Please feel free to call our broker owner Stuart Neal at: 780-760-2014 or visit our home buyers website www.AmbergateHomes.caPosted by Stuart Neal on