Working hard in the hopes of buying a dream home has always been a common aspirational goal for people looking to enter the real estate market. In today’s hot market environment, however, more people are feeling that dream slip away as housing prices continue to escalate. For those potential buyers growing frustrated with the process, realtor Hudson Smith has some hopeful advice.
“I know it’s easier said than done, but staying patient is important,” said Smith, head of a team of local realtors at the Hudson Smith Real Estate Group. “More homes are always being listed. In fact, every week that count has been going up. This means more options for local and out of town buyers alike.”
Smith acknowledges that the advice buyers are receiving from agents seems to have shifted from what a property is worth to what amount it will take to buy it. As a result, many buyers are looking at home ownership as an unrealistic and unachievable possibility. “In truth, yes, the challenge is there, but we just need to be creative. There have been many successful buyers in this recent market environment, it just takes a few tries and some unique ideas. Not every home is selling for hundreds of thousands of dollars over asking; those are just the ones that are making headlines.”
“Look, the market is strong, and no one can argue that,” said Smith. “But you also have to look at supply levels. There were 26 detached homes on the market as of this conversation, and we are coming out of an already strong market. There has also been another lockdown to make it a highly attentive market.”
Surprisingly, January has always been a competitive time to buy a house according to Smith. Many unfulfilled real estate searches from the previous year remain active, and buyers have just come through the holiday period when listings are usually at their lowest point. Additionally, a new year seems to ignite the hopes of many buyers looking to achieve their real estate goals. All those realities add heat to the market.
“It only makes sense that the early part of the year will have the most demand,” said Smith. “Many potential sellers are also waiting to have their gardens mulched in the spring before they list, so homes listed early in the year get an incredible amount of attention leading to a competitive market. On a house with 20 offers, you get one winner and that creates 19 buyers that want the next one even more. That’s when you see prices climb. It will be helpful if we continue to see inventory rise in the months ahead.”
Smith says it’s important as a buyer to continue to educate yourself on market realities and to develop a strategy, with the help of your agent, to help you achieve your goal. Having a plan will leave you feeling more confident in your decisions and ensure you have realistic expectations. That includes taking chances but not ones that will see you paying far too much for the home you want. Communication between you and your agent is the key to success here.
“Many out-of-town purchasers bring a different level of how far they will move value,” he said. “Sometimes, in order to have that accepted offer, you need to be ok with enduring a few rejections first. You have to be ok with taking the chance and going for it, because missed opportunities will sting more than the rejection. But you have to do it within reason. Look at the past sales. Look for value where others are missing it. Eventually you’re going to find what you’re looking for. I’ve been selling homes in Guelph for almost 18 years, and there have always been multiple offers in January and February.”
To help you reach your real estate goals, contact the Hudson Smith Real Estate Group, a trusted team of local real estate professionals. Visit them at 824 Gordon Street. Or call 519-821-3600.