February 2021 Market Update with Rina
January 2021 has had the most transactions in comparison to every other January over the last 5 years. The number of properties listed in January 2021 is slightly lower than in January 2020, yet the number of transactions increased by 24% year-over-year. 49% of the properties sold last month sold above the asking price.
Listings are getting lots of interest and selling in record time, often in multiple-offer situations. Inventory cannot keep up with demand.
As an agent what are you seeing in the market?
Lots of buyers in the market, ready to buy, eager to buy. Just not enough homes for sale in any price range whether it’s under 1 million dollars or over 2 million in all areas of Oakville.
Any comments on current inventory?
Current inventory is very low when we look at the demand out there. Interestingly, we’ve had more transactions in January 2021 over January 2017 – which was a peak period in real estate. This really reflects on the huge supply of buyers, just not enough product.
Why do you think there is such a demand for homes in Oakville – who’s buying?
We’re getting people coming from the city to the suburbs. We have some homeowners eager to change their living arrangements – with having to work from home and daily routines changing, either their home is too small or it’s too big or they need home offices or more of a backyard. I think what people are looking for is changing. Our needs and wants – everything is different than it was a year ago.
Buy first or sell first?
Typically, I would say to sell first and then buy because I tend to be more conservative. In this market, if you can, buy first and then sell. There just isn’t enough inventory. I would suggest that you find what you want first so that you’re not disappointed.
A lot of buyers are finding themselves in competing offer situations. What is your advice to buyers in this market?
I would say to really make an informed decision. Understand the market and what you are buying. Understand the values of that neighbourhood in the last 2 years, 3 years, 5 years. Look at the schools. Look at the amenities. Look at property values. Are you buying at the top end of the market? Will you be able to sell this home in the next 2, 3 years? Make a very informed decision. And if you have a really good agent, they will save you money and guide you through the process.
Advice for sellers?
For sellers, you’re in the driver’s seat – definitely! I would say have your home staged and marketed. Have great photos and video, drone photos, whatever you need to showcase your home and limit the amount of buyers coming through. Make it look great and show-ready. Staging is a huge factor in selling your home for top dollar. Be prepared for the craziness with the number of showings that you will experience in the first few days. Get on the market at the right time. Timing is key.
What are your market predictions for the next few weeks?
In the next few weeks, the market supply will increase. Many homeowners are getting their homes ready to list. The buyer demand is great and will continue to be strong. Even for the number of properties for sale right now, we just can’t keep up with the number of buyers. I don’t see prices dropping and I don’t see buyer activity going down anytime soon.