If these past few years have taught us anything, it is that life can change in an instant. We have learned how quickly the abnormal becomes normal and how important it is to pivot and adapt to what is currently before us and not dwell on what was behind us. This advice is particularly relevant to the Canadian housing market now, where a property that once sat on the market for $450,000 is now up for sale at $1.2M—and multiple offers can exceed that price. Is now a good time to sell your house? Or buy one? Let’s take a look.
The current situation
Of course, things can change at any moment, but right now, in many cities across Canada, there is a housing shortage. Our population is growing (and aging) and there is not enough affordable housing to rent or buy. Prices of all housing, including apartments, condos, etc., are skyrocketing.
Rental platforms like Airbnb and others have led to tens of thousands of homes being taken off the market in Canada. Plus, people move to our highly sought-after Canada all the time—and this is only increasing. Add to this mix the economic uncertainty around Covid, and you’ve got a market where demand FAR exceeds supply.
Should you sell your house?
You used to have to wait for the best season to sell your house, but now every season is selling season. Low interest rates have attracted more buyers and the demand for housing exceeds the supply at the moment, with signings up 20%-30% in the past few years, across Canadian cities.
Sellers are receiving offers well above their asking price and often have an abundance of offers to choose from. So, the short answer is, yes, it is likely a good time to sell if you are in an area where demand is high.
You’ll still have competition though, so you may have to invest a bit of money to make your place look as good as possible, especially since visits are often virtual these days. Your house has to be ready for its close-up!
However… keep in mind, that you have to live somewhere. So if your intention is to buy in the same city, you may find prices very steep at the moment. And COVID-19 is still around. Buying and selling potentially involves meeting a lot of people, from home visits and inspectors to notaries and any work you would like done on your new property. Some of this can be done online—but not all. Installing new locks or an alarm system can’t be Zoomed in.
Should you buy a house now?
See above for how steep prices can be in certain parts of the country, so you’d have to be comfortable with that fact. But mortgage rates are very low and that is enticing for many home buyers. And if you’re thinking about renting—especially if you’ve just sold your home and need a place to stay—prices are not much better there. In areas where home prices are up, so are rental prices.
However… prices can vary wildly depending on the neighbourhood. If you are flexible in where you’d like your new home to be, even within the same town, you may find something you love soon enough. Of course, the sooner you start looking, and the more time you have, the better your chances will be of finding your dream home, in the right place, with cheap mortgage rates. And if you’ve sold your home at an above-average price, all the better!
The takeaway
These are uncertain times and this extremely high demand, low supply housing crisis that exists in some Canadian areas, may not last forever. But with enough research, time, effort and flexibility (and budget!), it can be a good time to buy and sell.
At LegalShield, we can help you with the buying and selling process, especially mortgage and other document review, so get in touch anytime. Join the more than 4,400,000 people already protected by LegalShield and sign up today!
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