Buying a home anytime is a huge undertaking. It takes a lot of preparation, time and access to expertise.
Homeowners – and those wishing to become one for the first time – are having an even tougher time right now, with conditions seemingly changing from month to month.
REALTOR® Dave Starr specializes in buying and selling homes in and around Newmarket. With over 35 years of experience in the real estate industry, he is happy to share what he has learned with others.
slow things down
So how would he describe the current state of the market in Newmarket? “It’s finally more normal and realistic,” he says. “A potential buyer has a bit more leeway to make sure their financing is in place and they can also consider a home inspection.”
A seller will benefit from working with a more experienced agent, he says, because they already have previous experience in similar markets. He compares the situation to a professional athlete who has already made the playoffs or competed in a high-profile event like the Masters of golf.
Earlier in the year, the market was unrealistic.
This tended to leave buyers, sellers and agents scrambling. “The end result can be a situation of buyer’s remorse, where the buyer no longer wants to complete their purchase. Banks sometimes struggle with appraisals, which can also lead to a no-close,” he says “In the rapidly changing market that took place earlier, some agents potentially made more mistakes, especially since they weren’t experienced enough to handle multiple deals.”
Home inspections and interest rates
While some homes don’t require an inspection, there are plenty that definitely do. “In an extremely busy market, buyers could potentially end up with an unwanted surprise, at great expense,” says the real estate agent.
He likens it to the need to have speed limits on our roads. The faster you go, the more likely you are to have an accident.
“We are now facing an increase in mortgage rates, which many would not like to see, but the truth is that it will help balance the market as a whole. Lower interest rates were basically one of the reasons for house price inflation and landlords were just taking on bigger mortgages than ever,” he says.
For years, many landlords told him the same thing: that mortgage money was cheap for them. His response to this never varied: “You know you’ll have to pay it back at some point.” If the rate was guaranteed for life, that would be a different story, but of course that’s not how it works.
The market during the summer was slower but typical; this has become the norm in recent years.
The fall market is already starting to pick up, with increased activity, although the number of listings at Newmarket is quite low. The rental offer is both quite expensive and in short supply.
According to Starr, “The market going forward should remain stable. Buyers and sellers will have more time to make the best decision based on their needs and wants. »
Whether you are a buyer or a seller, he welcomes all calls or emails.
Let Dave Starr Real Estate help you take your next step. Call 416-520-3231 and get the Starr treatment you deserve.