5 reasons now is the perfect time to sell your home
story by Janet Lees ❧ illustration by Robert Carter
Thinking about selling your home? If you’ve been on the fence, we’ve got good news: it’s a great market for sellers! Limited inventory means you can likely sell your home faster, and for more money, than you could 12 months ago.
“There are always compelling reasons to sell your home, especially when you need to downsize, upgrade, relocate or are looking for a lifestyle change,” says Diana Berdini, broker and manager of Chestnut Park Real Estate in Collingwood and Owen Sound. “However, when you have the opportunity to choose your timing to sell, consider selling your home under seller’s market conditions.”
Here’s why this is an ideal time to sell:
1. Supply and Demand
The sales-to-listing ratio is a measure of market activity that compares the number of sales to the number of listings in the market being measured. It basically sets the balance between supply and demand. While there is no standard ratio for any market, some analysts agree a ratio less than 40 per cent is a buyer’s market, 40 to 60 per cent is a balanced market and over 60 per cent is a seller’s market.
2015 ended with the December sales-to-listing ratio at 74.71 per cent, clearly indicating a seller’s market,” notes Berdini, adding that 2016 has started off with a continued shortage of listings. “In a seller’s market there are a lot of qualified buyers in the marketplace and not enough homes for sale. When these conditions occur, bidding wars can drive up prices and sought-after properties may attract multiple offers.”
2. Low Interest Rates
Low interest rates are great for both buyers and sellers, and according to the Canadian Real Estate Association’s (CREA) report at the end of 2015, interest rates are expected to begin rising later than previously projected, holding at their current low rates until late in 2016 or beyond.
“Low interest rates will continue to support sales and prices during 2016 and could be a great reason to trade up to a more expensive home without having a significant increase to your monthly mortgage payments,” says Berdini.
3. Buy and Sell in the Same Market
This is a great time to sell if you are considering a larger home, a smaller home or a lifestyle change. “Because you can typically sell more quickly in a seller’s market and are more likely to achieve a higher sale price, you may be in a position to buy the larger, more expensive home you have had your eye on, or downsize with an extra cushion in your financial portfolio,” says Berdini.
4. Cash-in Equity
Where is the demand coming from? The city, of course. Many empty nesters are cashing out their Toronto and Muskoka (or Arizona and Florida) properties and heading here for a premium lifestyle at a still-under-premium cost.
“During 2015, we saw many empty nesters who owned a home in the Greater Toronto Area (GTA) sell high and make a lifestyle move to the Southern Georgian Bay area where they can downsize, put some equity away and enjoy an active lifestyle,” says Berdini. “With fewer listings currently available and an influx of buyers from the GTA, now is a great time to get your home on the market.”
5. Take Advantage of Resale vs. New
One of the first decisions buyers need to make is whether they will buy/build new or shop for an existing home. In many cases, comparable resale homes may be less expensive and move-in ready, whereas buying a new home might involve waiting for it to be built.
“If you live in an established neighborhood or own a particular lifestyle home that may be desirable for someone moving from another location, now may be the best time to list, while inventory is low and you can attract a buyer for your existing property rather than the buyer waiting for a new home to be built,” notes Berdini.
All in all, this is without a doubt the best time in at least a decade to list your home for sale!
Read More about Real Estate in this Issue
– Real Estate Q&A
– The Game Has Changed!
– Sell, Sell, Sell!
– Ready, Set, List!
– Buying Strategies
– The Best Bidder
– Going to the Country?
– Thinking of Investing in Real Estate?
