COVID-19 has affected all of us. I think we would all agree that there isn’t a playbook for what we are experiencing. In terms of Real Estate, over the course of a few weeks in March, the market did a total about-face from a booming seller’s market (not enough inventory) to a slow crawl. Sellers became hesitant to list, as we turned into unprecedented times. To be mindful of social distancing, buyers viewed less properties in person, and were hesitant to put in an offer due to the unknown of what was around the corner.
It can be hard to find silver linings during these times, but there may be some to be had especially if you are a first-time home buyer. If you were previously thinking of delving into the market – it may be a good time to get your finances in order. That way, should your dream property come on the market, you’re in a good position to make a move. Here’s why it may be a good time to thinking about getting in:
1. We are seeing a reduction in bidding wars (Those of you who have lost out on offers in the past due to multiple offers know exactly what I’m talking about). Conventionally, most sellers would host an ‘offer night’, but during COVID we are seeing offers being accepted anytime which has drastically reduced buyer competition.
2. Experience lower interest rates without any signs of increasing anytime soon.
3. The Home Buyers Plan (HBP) is a program that allows you to withdraw from your RRSP’s to buy a qualifying home. The government increased the withdrawal limit in 2019 to $35k for qualified first-time home buyers. This is a great incentive to help support those who are looking to purchase their first home.
If you are thinking of getting in the market, I’d love to chat with you more about how I go the extra mile for my clients. Reach out to me anytime for a chat, or sign up for my real estate updates, specific to the area you are searching in.
Stay safe everyone.
Michael
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