This real estate market of ours really is quite remarkable isn’t it? When times were seriously rough it seemed as though the sky was falling. And now? Well it seems the weather isn’t the only thing that’s been heating up lately. Prior to this month I’d dealt with just three multiple offer situations all year. In June alone, I’ve already dealt with eight! So what does all this mean? Has the market really turned? Are all the deals gone? Here’s an insight.
When it comes to real estate it seems the general consensus dictates market trends. During late 2008 and early 2009, as I’ve suggested here many times, the darkest times were driven more so by panic than anything else. That’s why I knew that around mid-2009 a positive shift in the market would be imminent. Having said that, I certainly did not expect the extreme Dr. Jekyll-Mr. Hyde act our real estate market has pulled. Yet again, however, it is consumer opinion — in this incidence confidence — that is the fuel lighting this rocket ship to the moon once more.
As it usually does, the truth about how hot our market really is or, more accurately, how healthy our market really should be, lies somewhere in between the grim reaper days of January and this June of the second coming.
If buyer Kate was waiting to take advantage of the buyer’s market this year and decided to wait into the summer months, unfortunately she won’t be finding the same type of bottom-end prices she may have a few months back. However, if Kate’s looking at one of the city’s most popular/prestigious areas, which have suddenly ballooned out of control, she might do well to at least entertain the thought of waiting perhaps a month or two longer. The hope in such an assessment would be a result that reveals prices stabilizing again after the summer rush. While I don’t believe waiting will benefit every, or even most, buyers, I do believe that some would do well to consider it. It all depends of course on the specifics of Kate’s circumstances.
Now if seller Keith has aspirations to move this year, now is absolutely the time for him to do so. Keith should be looking to take immediate steps — begin by seeking the guidance of a trustworthy realtor who comes highly recommended by a reliable friend even after their sale — to take advantage of what I believe to be an overall temporary spike in our real estate market, for summer 2009.
One tip I would like to share with all of you who have even the slightest notion of making a move this year is to consult with a mortgage professional, get a pre-approval done, and lock in today’s interest rate. Rising real estate prices tend to play smoke to the fire that is rising interest rates and the past few weeks have proven this theory positive. The most important thing to remember, if you are considering any sort of a move in the near future, is to begin by giving yourself as much time a possible to educate yourself on the market.
Amit is a Realtor/Developer with Re/Max. amitp@rogers.com
