Housing prices and the economy seem unpredictable right now. As a buyer or seller, what is your best strategy when dealing with uncertain conditions?
We spoke to local real estate expert Larry Kich to find out.
“Current thinking is that the Bank of Canada will continue lowering borrowing rates into the New Year, which should stimulate an increase in housing sales activity. The demand for housing is linked to the cost of borrowing, so as money becomes cheaper to borrow, demand for purchases/sales rises.”
He assesses the current market as balanced in terms of supply and demand, but a bit stagnant. “Most buyers are sitting on the sidelines waiting for larger interest rate drops,” he says.
He advises that the best strategy for buyers when housing prices and the economy are unpredictable is to work with professionals. A good mortgage broker can help you find out what you can borrow, an experienced REALTOR® will do the due diligence in understanding the market and help you find the right property, and a good real estate lawyer will ensure you’re protected.
Sellers need clarity on the best timing to sell given market conditions. They must prepare their home to attract a good offer and negotiate the best agreement of purchase. The best way to do this is to work with an experienced REALTOR®.
“Clients’ concerns are usually related to their own particular life situation. They are primarily related to getting a fair purchase/sales agreement.”
A market like this presents a few opportunities. The broker says, “Currently, buyers are able to find a good property and negotiate favourable purchase terms.”
His advice for anyone seeking the right home for their family is to target homes priced slightly below your budget. This leaves room for flexibility in negotiations.
“Timing is critical when buying or selling. Ideally, one sells high and buys low, but some sell low and buy high (not ideal). The market is dynamic—it moves with the changing economy. It’s influenced by the cost of borrowing, so as mortgage rates go down, demand for homes tends to go up. Conversely, as they rise, demand tends to go down—often irrespective of supply.”
Kich started as a real estate broker in 2010, after 29 years in marketing/sales and business development in the pharmaceutical industry. He specializes in residential sales and leasing, including luxury homes, with some activity in commercial leasing.
His desire to continue working drew him to the field. He owned several homes and rental properties, so he had a good eye for the real estate market.
Kich says, “Both buyers and sellers should be mindful of market conditions and their implications before making decisions.”
Are you buying or selling in Guelph? Visit real estate broker Larry Kich of Royal LePage Royal City Realty or call 519-830-1499. Follow him on Facebook.
