4 Major Incentives To Sell This Summer - July 22 2021

4 Major Incentives To Sell This Summer

While the housing market forecast for the second half of the year remains positive, there may not be a better time to sell than right now. Here are four things to consider if you’re trying to decide if now’s the right time to make a move.
 

1. Your House Will Likely Sell Quickly

According to the most recent GTA REALTORS® Release June Stats, homes continue to sell quickly. The report notes detached homes in York Region are selling in just 15 days and that homes of any type (semi-detached, detached, condos, townhomes etc) are selling in only 19 days on average.

Average days on market is a strong indicator of buyer competition, and homes selling quickly is a great sign for sellers. It’s one of several factors that indicate buyers are motivated to do what it takes to purchase the home of their dreams.
 

2. Buyers Are Willing To Compete for Your House

In addition to selling fast, homes are receiving multiple offers. In the United States, where the National Association of Realtors collects information on the average number of offers for a home for sale, they report seeing an average of 5 offers, and these offers are competitive ones.

While we do not have comparative data available for the GTA or York Region, we do know from our own experience that multiple offers continue to be a reality in most home buying situations at this time. Receiving several offers on your house means you can select the one that makes the most sense for your situation and financial well-being.
 

3. When Supply Is Low, Your House Is in the Spotlight

One of the most significant challenges for motivated buyers is the current inventory of homes for sale, which while improving, remains at near-record lows. The most recent statistics from the Toronto Regional Real Estate Board indicate that there is an inventory of 1.4 months of homes.

Months of Inventory is a measure of how fast all the existing homes on the market would last assuming a) no more listings are added, and b) the rate at which homes sell is a constant figure based on the average of the last 12 months of sales.

There are signs, however, that the inventory numbers may increase in September as people return from summer vacation (the summer months are traditionally slower in the real estate market).

If you’re looking to take advantage of buyer demand and get the most attention for your house, selling now before more listings come to the market might be your best option.
 

 

4. If You’re Thinking of Moving Up, Now May Be the Time

Over the past 12 months, homeowners have gained a significant amount of wealth through growing equity. In that same period, homeowners have also spent a considerable amount of time in their homes, and many have decided their house doesn’t meet their needs.

If you’re not happy with your current home, you can leverage that equity to power your move now. Your equity, plus current low mortgage rates, can help you maximize your purchasing power.

But these near-historic low rates won’t last forever. As interest rates rise, even modestly, it could influence buyer demand and your purchasing power.

At its May 2021 announcement, the Bank of Canada (BoC) signalled it might start raising short-term interest rates in late 2022, as a result of a brighter outlook for the Canadian economy. At its announcement in June, the BoC confirmed this economic and rate outlook.

If you’ve been waiting for the best time to sell to fuel your move up, you likely won’t find more favorable conditions than those we’re seeing today.
 

Bottom Line

With supply challenges, low mortgage rates, and extremely motivated buyers, sellers are well-positioned to take advantage of current market conditions right now. If you’re thinking about selling, let’s connect today to discuss why it makes sense to list your home sooner rather than later.

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