Hello friends and clients,
As past, current or potential clients, I would like you to be aware of current trends in the Windsor and Essex County Real Estate Market.
Seasonal changes can affect the market, and now that Autumn has arrived and Christmas is around the corner, I would like to answer some of the questions that I seem to get asked the most.
Should I wait until after Christmas to buy or sell a house?
Generally speaking, most people who celebrate Christmas prefer to take time off to enjoy the holidays, and therefore they will wait until the new year to list their homes for sale.
However, there are many people looking to buy or sell regardless of the holiday.
For example, many people who are being relocated for work reasons will only have a certain amount of time to find a house to buy/rent.
There are many people who are forced to sell there homes due to a variety of family and financial situations that are beyond their control.
Also, there are of course many people with different religions who do not celebrate Christmas at all.
As a result, although there is less inventory than in other months, there is always someone buying and selling, regardless of the time of year.
This is especially true in Windsor, as we are still experiencing a high demand for homes, with very little inventory.
Should I wait until the market cools down before buying?
The only reason you should wait to buy a home is if you are not financially prepared.
Otherwise, the time to buy is now.
Interest rates have already started to climb, and experts predict that the Bank Of Canada will continue with several more hikes in the new year.
In addition, home values in the area are up approximately 15% year over year for the last 3 years.
If you wait, you can expect to pay more for the house and more for your mortgage.
Isn’t this market a bubble that will eventually burst?
Not likely. There are a number of factors driving the market, none of which seem to be pushing it to the point of bursting.
Although there is a huge demand for housing from many groups of buyers, there is also building and renovating which is working to keep up with the demand.
Additionally, the area was undervalued for many years, so much of the high values are simply a long overdue correction, which is bringing local values up to par with the rest of the country.
It is important to point out here that some of the driving factors in the current market will continue to force values in the same direction, and there is no reason to believe this will not continue for the foreseeable future.
The overheated Toronto and GTA market has people looking to cities like Windsor for affordable housing. Our values are significantly lower, and therefore more affordable.
For this reason we have seen a jump in sales of single family homes of all sizes as well as investors purchasing income properties earning some of the highest returns in the country.
Although the unemployment rate for September was 7.3 per cent, well above the provincial average of 5.7 per cent, the city and region’s lowest unemployment rate for 2018 was in January at 4.6 per cent.
“I think there was a lot of uncertainty previous to NAFTA and I think people were waiting and not doing a lot,” said Janice Forsyth, acting president and CEO of the Windsor-Essex Chamber of Commerce. “It is concerning. But with the Gordie Howe Bridge deal and the (U.S.-Mexico-Canada) trade deal, we think we have some strong economic tailwinds.”
Other major infrastructure projects like the approval for current Ambassador Bridge owner to replace the current crossing, a new mega-hospital, and the resurgence of the City of Detroit, the stage is set for steady growth for years to come.
So there you have it. This generally sums up the current market in what I hope was not too much of a long winded read.
There is of course much more to discuss if you are indeed still interested in buying or selling a property in the near future.
For more information on any of these facts, stats or trends, please do not hesitate to contact me anytime, or go to seanandsharon.com for more updates, listings and blogs.
Also, please feel free to reach out to update me on your current real estate situation and needs.
Sean O’Hearn and Sharon Lazar
Coldwell Banker Essential Realty