It's the race for space. Buyers' insatiable appetite continues to drive the real estate market. Households maintaining an income during the pandemic and logging into the work-from-home life are exploring the suburbs and mid-sized cities for large-sized homes and are facing a low supply.
Buyers are capitalizing on low mortgage interest rates but with the low supply of homes, they’re meeting heavy competition from other buyers, creating soaring selling prices. This housing frenzy is influencing a knockout win-strategy: go firm.
Typically, buyers submit offers conditional on, at the very least, getting a mortgage. A firm offer means you’re ready to purchase the home for your offer amount and the terms outlined by the seller, without conditions attached. Firm offers are the winning offers. In this market, if you don’t come with your best offer and go firm you'll be driving around seeing many homes, putting in several offers and losing to the firm offer... in most cases. There’s levels to this.
If going firm isn’t an option, look out for listings:
with high days on the market (DOM)
taking offers on any date
You may be searching for longer than you originally planned to, however making the move now is better than getting squeezed out. Some might think “I’ll just wait it out” but economists aren’t forecasting a rebalancing of the market until late 2021 at the earliest meaning prices won’t stabilize until then or potentially sometime in 2022.
High home prices, paired with successful Canadian vaccination campaigns and relaxed restrictions, will bring more sellers to the market, many of whom may have delayed listing their homes during the spring's third lockdown wave.
Every case is different. I’m working call me.
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