After a cool winter, can Burlington expect a slow thaw or a flood of new listings on the real estate market this spring? Weather puns are fun, but I’ll stop. I’d hate to make you frosty. I’m sorry. I can do this, like there’s snow tomorrow. Ok maybe I need professional help.
Kidding aside, for those of you who pay close attention, it isn’t news that the housing market in the GTA in 2017 was volatile. It started with incredible demand and upward pressure on prices and then turned drastically when some new housing rules (with the intended consequence of cooling the Toronto market) were announced. By the end of the year prices more or less stabilized and, in some areas, were even inching up again.
Most recently, the Burlington area saw the number of sales in February 2018 drop to a more conservative 117, from 2017’s insane and record-breaking 236.
We also saw the average sale price of a home in Burlington drop from 2017’s $756,324, to $689,906, a reduction of nearly 9%.
These early statistics are in line with the market forecast for 2018. Most industry professionals are suggesting this year will see a more modest increase in average price and the number of sales down slightly from the 5 year average. This prediction comes from what experts assume will be the impact of the new mortgage stress test combined with caution after the volatility of 2017.
What Does This Mean for Springtime Buyers?
In previous years Buyers relied on agents to get them into homes seconds after they were listed. Once in the home a decision to move forward needed to be made. There was no “sleeping on it”. What price to pay for a property felt like a shot in the dark with multiple offers presented and no idea how crazy someone else at the table might be.
This spring buyers will be delighted to know they can “sleep on it”. Buyers will have time to view and compare, with less of a sense of break-neck urgency every time a new listing appears. Realtors can breathe too, and offer advice on how to make a reasonable offer based on sales in the area and then, say it ain’t so, engage in an actual negotiation.
All in all, it looks like we might be back to some sanity in the housing market in 2018 and that’s just good for everyone.
What Does This Mean For Springtime Sellers?
After several years holding all the cards, we are predicting that this spring sellers will have to be at the top of their game, presenting a product that buyers will fall in love with, at a price that falls in line with recent comparables.
At the moment we don’t have a lot on the market, especially in the under $700k freehold range. So sellers might want to take advantage of this. They just might find their home sells at a higher price than it will later in the season.
Is Now a Good Time to Buy or Sell?
Too many people go into real estate hibernation in the winter months. They’re waiting for the springtime peak season. This could be a mistake. People who take advantage of the “dog days” of winter often find a hidden bargain.
If you’re in the real estate market now, as a buyer you will face less competition allowing you to secure a better all-round deal and as a seller you will get more attention with fewer competing homes. You can also tap into the more motivated buyers or sellers who need to make a change because of a new job or a growing family.
Exploring your options this time of year is always a good idea. Even if you don’t end up buying or selling until the peak spring season months, you will find your winter research will arm you to make a better decision.
See What’s Available in Burlington Right Now
Want to take advantage of these lower prices, or try to find the hidden gem of the real estate “off-season”? We can help!
Burlington remains one of the most in-demand places to live in all of Canada. We were recently named the #1 medium-sized city in Canada, for the 4th straight year!
Sellers: take a look at our Giveback Program and find out how we are getting clients more money for their homes and making the process stress free.