Find out why now is the best time to sell your Greater Vancouver property or any investment properties you may have...
Everyone thought Covid19 would be long gone by now, and even with it wreaking havoc on many business and people worldwide somehow, real estate investors have been among a rare species who've gained rather than lost in this pandemic.
Do you wonder why? It's because homes have sold (and are selling) faster than ever in 2021.
During this time the real estate market has become red-hot and the demand among buyers of properties has been increasing. This means if you own any real estate investments, or fix and flip properties, you may want to consider selling right now.
Read on and find out SIX reasons to sell your Greater Vancouver property now, and not later...
1) 2021 Proved to be a Sellers Market
There's absolutely no doubt real estate is a 'seller's market' right now. Every survey and statistics chart proves it! According to Zillow, the total number of sales in real estate will be slightly higher than they were in 2020 and, 2020 was the most active year since 2006. Clearly the housing market of 2021 has promise and potential, because people ARE buying. In fact in the Greater Vancouver area it is not uncommon to have multiple offers on one property, the first day it hits the market. However changing times means, no guarantees this momentum will continue into coming years.
So, think about it and act swiftly!
2) Potential to Ask a Higher Than Usual Price
The thing is, ever since Covid19 hit globally, the supply of homes decreased. Canadian housing stats show us early in 2021, there were 40% fewer homes on the market compared to the same time last year. One of the reasons for the low supply was people being locked inside their homes. Most sellers weren't willing to do a showing for potential buyers during the peak of this pandemic and homes that were listed got snapped up quickly...
As the year approaches its end and everything starts getting back to normal, supply is slowly increasing.
Luckily there's still time to use the 'low-supply' leverage and expect a higher price when you sell!
3) Interest Rates are Low
One of the main reasons buyers are desperately looking for homes is interest rates. They've been at an all-time low throughout this pandemic. However, stats show that interest rates likely won't remain this low, and In fact, they're already on the rise.
Low interest rates mean low mortgage costs for buyers and that's why you can expect them to queue up and bid for your house if you sell now.
Maybe not next year, when the rates are even higher!
4) Future Foreclosures Will Lower Demand
When the Corona virus pandemic hit, the Canadian government ordered relaxation on foreclosures. People were losing their jobs and their incomes slumped, making it difficult to pay their mortgage. As of next year, this relaxation will be removed meaning that there is a possibility a whole lot of people may lose their homes and unfortunately a lot of those properties will be back on the market.
With the possibility of so many upcoming foreclosures the market may have a higher supply of homes, meaning prices may fall - higher supply, lower prices. Right?
5) Older Citizens' Properties to be Listed
Did you know that senior citizens currently house about 21 MILLION homes in the Canada?
So, what's the point: older generations will also lose (or move out of) their homes in coming years, for various reasons. Like, failure to pay the mortgage, moving in with relatives, assisted living, etc.
This may create another influx of properties hitting the market and becomeing available to be sold...
Increasing the supply again and most likely driving the prices down. In short creating a worse situation for you, the seller.
6) Loss of Leverage After Covid19 Ends.
Last but not least, as the Covid19 pandemic clears out and we adjust to our new normal, the upper hand that came with these unusual times, that were offered to sellers may soon dissapear. Interest rates most likely wont be low forever and the short supply of home is projected to change. New housing schemes, higher interest rates, business revival and more options for buyers in 2022, may start to work against you.
Now is the time to take action and sell your property for top dollar. Talk to your real estate agent for an expert opinion and peace of mind.
Best of luck!