Let's be honest, the "pandemic " housing market has been exhausting and daunting.....maybe even downright terrifying for buyers, and especially for first time buyers. Yes, it's been rewarding for sellers but unless they are moving to Timbuktu (maybe even there?) they are experiencing the buyer angst on the other end.
The encouraging news is that that crazy market has quieted somewhat. We're seeing fewer bids on properties and smaller gaps between list and sell prices. That said, the new list prices are 30% +++ higher than before the pandemic forcing some first time buyers out of the market. And those buyers are now struggling to find affordable rentals! Sadly we are still faced with low listing inventory perpetuating the seller's market But we are optimistic the Fall will see a more balanced market with more listings.
The real estate supply crisis is a major topic in the current federal election campaign. If it affects you as a first time buyer, if you're looking for an affordable rental, or if you're already a home owner who relies on the first time buyer demand to keep our market strong, study the candidates platforms carefully and be sure to vote! We need serious action in Ottawa for more housing starts and more rental units for low income families.
Food for Thought....
Some have said the blind bid process has got to go. Is an auction format the way to go, whereby you see every competitor and know what they're offering? Or, if you're a seller, does that remove your right to get the best possible price?
Longer mortgage amortization periods would help qualify more buyers. Some countries have 100 year amortization periods. That might be a bit too drastic but should 50-75 year amortizations be considered?
Should the "stress test" rate of 5.25% be reduced, or eliminated altogether to help buyers qualify easier for mortgages?
I'd love to chat with you! Text or email me with any questions or comments!