Trust me on this! Scott McGillivray agrees with me, just see for yourself!
I feel terrible for the people who are are still waiting for prices to drop to buy a new home. Not only are we edging towards the peak benchmark prices of 2022 (except for apartments, which actually peaked last January) , but many mortgages payments have actually increased close to 50% compared to what they were a couple of years ago.
I visited a client the other day that wanted me to sell the home she bought in 2021. After reviewing her situation, her goals, her risk tolerance, and mindset... I advised against it.
It would be an easy sale. It would go in 7 days... BUT ...
She can afford the home she wants to buy without selling the one she has, so I told her to keep it, rent it out, and go buy her new home. If homes continue to appreciate at half the rate they have been, she'll be able to use the equity in that home to buy a third one.
Take a look at the chart below. One Storey homes increased in value by over $90,000 in the past 5 years. Unless you make massive extra payments no-one is paying off $90,000 on their 300k mortgage in 5 years. Historically, just about everyone has increased their wealth & equity more through ownership than mortgage paydown.
Just ask any boomer who bought their house for $13,000 and a stick of gum.
Let's dive into the details!
We're seeing what we typically see this time of year - tons of listings and lots of activity. While we're not seeing the "crazy over-bidding" we saw in recent years, there are still many competitive multiple offer situations, especially in the 300-450k range. Good houses do not last in good neighbourhoods if they are priced properly.
If you're looking to buy a luxury home - 700k+ - now is the time. There are plenty of empty showhomes and other new builds available. Especially if you're not picky, this is a great time to save $10,000's on a new home. I've seen prices that have come down $200,000.
Overall, we're still in a strong sellers market, despite slighlty edging back to balanced. If no more homes hit the market, there would be no houses left to buy in about 2.5 months at the current rate of purchasing.
Advice for buyers: Pre-inspections. Get a pre-inspection so that you're well aware of what you're purchasing. Adding an inspection condition if you're sure there is no competition for the house is fine, but otherwise, you want to tick that box beforehand. Plus, you will feel more confident offering what you need to offer to get the home if you're sure it's good to do.
Advice for Sellers: DON'T SELL. Keep, if you can, and continue to build wealth and equity in multiple properties. If you DO have to sell, involve me early, so that we can maximize returns and minimize expenses. Not everything is worth doing, and you may be shocked at what actually matters to buyers.
And remember - if anyone you know would benefit from this advice, SEND THEM MY WAY!
** All infographics are courtesy of The Winnipeg Regional Real Estate Board.
Dino Stepic
RE/MAX One Group
Office Address:
4-756 Pembina
Winnipeg, MB, R3M 2M7
