Are you looking to make a move in the Ontario housing market this year? Real Estate experts Tory Akene and Bruk Telahun have some insider tips and strategies that you won't want to miss! In a recent Chat Series session with members of the makingTheMove community, they shared their insights on how to navigate bidding wars, set priorities, and find the right local expert. Whether you're a buyer or seller, their expertise can help you come out on top. Read on for valuable guidance that could make all the difference in your Real Estate journey.
The State of the Real Estate Market in Ontario, Canada
Due to the interest rate hike, the average number of house sales has dropped. As a result, there are a lot more inventory in the Ontario housing market. Typically, when interest rates go up, housing prices will start to come down.
The Financial Market
On the 25th of January, the Bank of Canada raised the interest rates to 4.50 %. This means that there is a $15 of increase per $100,000, which is concerning for potential buyers and sellers in the market.
Strategies for the Search
Finding a home is not something you do in a day. It's something that will take some time. Owning a home means you are going to have a lot more responsibilities, so you want to make sure that you’re financially and mentally prepared for it.
Some key strategies for your home search are:
1. Deciding what you want
A lot of times, the first home you get may not have everything that you want. This presents an opportunity for you to do a self-analysis to decide on the things you want and the things you need. Also, bear in mind that things in a house can be changed.
2. Deciding on the area
Different areas have different price points associated with them. For example, a detached home in Toronto would come to an average of $1.2 million or more. On the other hand, the average house of a detached home in Hamilton, comes to about $750,000. And you can find some great choices for even much less depending on what your needs are.
3. Bidding wars
Bidding wars have been quite prevalent in that last 2 years. Although they have quieted down in the last 6 to 8 months.
A marketing technique that realtors are beginning to re-adopt is listing the house price lower than the actual value. This builds anticipation, which results in a significantly higher final sale price from the bidding war.
Conditions & Clauses
Conditions are safety nets for the buyer to take advantage of. For instance, you may set a condition that if the seller accepts your offer, you want to have 3 or 4 days to do a home inspection or to get a confirmation that your bank will give you the offer.
Priorities – What to do first
1. Pre-Approval
This should be your number 1 step in the process of buying your home. A lot of times people will look at homes under an arbitrary number, when they qualify for a home worth a lot more than that.
2. Local Expert
It is important to find a trustworthy local realtor, who you connect with. Your realtor needs to have best interest at heart and actively share all your options to you. This means that they wouldn't let you put an offer in for just any house. They also need to have accessibility to the housing industry.
3. Starting the search
Step three is starting with search. The perfect time to start looking at homes is now. It is good to keep an eye on the market and see how things grow.
4. View it in person
It comes as a surprise to many people that houses don’t match the online photos and viewing a house in person can be a let-down. This is why it is so important to view your house of interest in person as the pictures you see online are usually professionally lit and edited. You also want to be available to see the area in which the house is situated. For instance, the house may be beautiful, but be next to a train track. Viewing the area gives you the opportunity to reduce potential surprises and you can visualize the kind of lifestyle you’ll be exposed to in that environment.
About makingTheMove's Chat Series
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This has been quite insightful. Looking up to subsequent