The Breakdown - Week of January 11, 2021
Welcome to 2021!
So we are now in what is supposed to be the coolest times for both the weather and our real estate market. But, we are still seeing above seasonal temperatures and the real estate market continues to perform at a bullish pace in terms of sales.
In a recent IPSOS poll conducted, about 66% of Canadians are good with their current financial standing and for the most part, have taken the time during the pandemic to tighten up spending and alleviate household debt. Why is this important to our breakdown? Home prices across the country have also increased, allowing for a better situation for homeowners. Within our own city, we have seen that just from the beginning of the month to now (last column above indicated by +) shows that sales have increased 19% while listings continue to decline (28%) from the beginning of the month.
For people already owning some form of housing, this is good. The pricing may not be where you'd like it to be just yet, but the trend has been consistent since May of last year. Benchmark prices are slowly increasing (2.79% from December 2020 compared to 2019 December).
As of today, we are seeing single-family detached homes selling in just over 2 months of entering the market. At the pace, we are currently seeing, if nothing new entered the market today onwards, we would see everything sold in 2.18 months (based on Decembers completed numbers)
But who is this not good for? First-time buyers and those that are currently renting. The wealth gap is growing due to homeownership and if you are able to purchase a home in this market with the lower rates, you should seriously be considering this step. I have wonderful lender partners I can connect with you to help you get on your way with as little as a 5% down payment.
Consider the following example, if you are renting a property for $1600 a month before utilities and taxes, this is equivalent of you purchasing a home around $400,000. This is nearly the average home price for a single-family detached home. If you'd like to save money from this example, you can consider duplex homes that have a lower price point. Or even further, we an talk about townhouse condominium living. There are government programs to assist you with the down payment if needed. However, this investment now of a down payment will allow you to take advantage of the upswing in the market we are hoping to continue to see going forward.
Homeownership is something that can be attained with the right help. Allow me and my wonderful partners in the industry to work with you to find you the next home. We will work with you to set you up for success for when you are able to purchase your first home if now is not the best time. All you have to do is reach out and connect with me to get started (firstname.lastname@example.org)
If you have not received our year 2021 Real Estate Market Snapshot in the mail and would like to get a copy, just shoot me an email at email@example.com with your address. I will get it in the mail to you right away.
If you'd like to connect to start the conversation about homeownership and are hesitant about being sold on the spot, that is understandable. My team and I are focused on helping where we can. We hope that our service will help you achieve your goal of owning one day, but also to trust us with the referral of your friends and family that would appreciate our assistance as well.
Comment below with your questions and I hope we can connect and I can help you. Thank you once again - Aly