For many people this is a fretful time. Perhaps you have heard that single family home values across metro Edmonton have gone through the roof. This is true. Values are currently trending at above 10% over last years values. However, there are several factors you should consider before deciding if you will sell now, or wait.
1. It won’t last forever
We are experiencing extremely high demand for single family homes and an inventory shortage perhaps due to worries over COVID. In other words, more and more people see the value in buying some space to keep their families safe, whilst others are saying let’s not move until COVID is over. Once the market moves into a state of equilibrium, values will level off and may eventually drop, perhaps as early as the third quarter of 2021.
2. Interest rate increases are coming
According to this article in the Financial Post, (see link) interest rates are set to rise. In simple terms this means that buyers will be able to afford less house. This could mean that homes priced at average or above, will start to become less attractive and your home might be worth less if you wait.
3. We have a unique window in history
Due to COVID, more people are seeking the space that single family homes provide over condos. Therefore, the single-family home market has exploded and the condo market has tanked. It won’t last forever. Will you take advantage or sit this opportunity out?
4. You will enjoy certainty
Values in the Edmonton market last rose to a high back in 2007. In 2008, at the start of the last recession and when oil prices tanked, our market saw a steep decline and up until this point, most areas of metro Edmonton have not recovered. What will the next 6 months or even 6 years bring? If history repeats itself, we could be back into a downward spiral. If you act now when values are high, you can sell your single-family home with a high degree of certainty that it will make top dollar.
5. This is a great time to right size
Are you an empty nester? Is your home much bigger than you need? There are buyers literally lining up to buy larger single-family homes right across metro Edmonton at this point and they will pay top dollar. Why not sell now and perhaps buy a smaller home for which there is less demand, or perhaps consider a condo and pick one up for large discount.
6. Sellers won’t look at offers subject to the sale of yours
Perhaps you have become convinced that you will move, but you want to find your dream home first and make an offer subject to the sale of your existing home. Respectfully, you should forget this idea. Sellers of the better homes are not going to wait for you. In most markets and especially now, there is always another buyer who is coming from a rental situation, or someone who has perhaps sold their home first. You cannot compete, unless you are willing to pay over current market value. Does that make financial sense?
7. There’s always somewhere to live
In a community as large as ours, there is always somewhere else to live. In fact, we are spoiled for choice. If you want a short-term solution, you could try family. There are hotels and Airbnb homes available at any time and there is always something on the rental market. If you really prefer to buy, simply ask your REALTOR® to provide you with a list of vacant homes and condos. You might be surprised; your dream home could be ready and waiting. At the time of writing, there was well over 800 vacant homes listed on our MLS® system.
About the author:
You can read more about the author of this blog by clicking this link – Stuart Neal Broker Owner & REALTOR®.
Want more information about our transparent & affordable full service FLAT FEE home selling programs? Please feel free to call our broker owner Stuart Neal at: 780-760-2014 or visit our home sellers page www.FlatFeeRealtyAdvisors.ca
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