Every Tuesday, Melody Wilson, Edmonton Remax Elite Realtor goes LIVE across all social media platforms.
This week she chats “Update on the Edmonton real estate market, recent events – corona virus and interest rates, and who you work with matters when buying”
Watch below, or read on…
Today we wanted to update you about what’s going on in the real estate market in Edmonton in March 2020, how recent events are affecting the market and economy, and how it is important about who you work with.
You obviously know that the corona virus is a big thing that we’re hearing about right now, and we’re also hearing about interest rates. Both have been huge topics on the news. So I want to talk about how that all relates to buying a house, and you might wonder how on earth we’re gonna relate this!
First off, I am going to say I am not offering toilet paper as a closing gift ? I don’t even know if I’ll have toilet paper because we didn’t stock up on it!
The other thing I’m going to say is that, I’m not gonna talk about corona virus at all here. I don’t want to talk about why you should or should not buy toilet paper, or wash your hands, or that kind of stuff. What I want to talk about is how it has impacted the economy, and who you work with matters. I want to focus on why who you are working with is important when you’re buying a house.
Does it matter that you’re working with someone who washes their hands?So for the record, I DO wash my hands. That is important to me because I don’t want to spread germs and when you’re showing houses, you’re touching things, and you’re opening doors and stuff like that. So, yes, I do wash my hands.
But in regards to how that’s affecting the economy, other than the fact that toilet paper stocks must be going up, it’s also affecting the interest rates. Our interest rate has dropped, and the bond market has also dropped as well, and so it’s all gone down.
I was all excited about it, and I think the media is still pretty hyped about where the interest rates are because they’re going lower, it means good things for us in terms of spring market and buyer’s confidence. That’s a huge part of it. Buyer’s confidence is what we haven’t seen in the last 4 and a 1/2 years with the recession that we’ve had. We’ve had such a hard economy, I haven’t seen as much optimism and activity. So optimism was one thing, but activity, I mean, like people actually buying homes. In the last couple weeks, as I’ve been helping different buyers out in different ranges of prices, things are selling!
I’m talking $150,000 to 200,000 condos. I’m talking houses from $200,000 to $300,000 – Yes, there are homes like that on and there’s also homes $300,000 to $500,000. All these ranges are all seeing activity that we weren’t seeing last year. We’re seeing properties either pending or sold, and we’re looking to book them for appointments, which is kind of annoying as a buyer, because we don’t even get to see that property because it’s already sold before we’ve even had a chance to look at it.
These are great signs in terms of buyer confidence. And now you’ve got the interest rates and the mortgage stress test rules that have laxed up on how much you’re able to qualify for. There’s a lot of good things happening for that in terms of buying a home.
So why does it matter who you work with? Don’t just you just go and buy a house or just call the listing agent and get them to help you because you’ve got a great deal on your mortgage and you’re just like, “this is awesome.”
It’s still super important, even though things are happening, to make sure you work with someone who knows the market because right now where the real estate market is, there are still deals to be found, so you don’t want to just to find the first thing, and settle.
There are deals sometimes when you work with someone like myself, I only know what the deals are because I’ve seen all the stuff that’s overpriced, and then I find something that’s a really good deal – I’m going to tell you, and make sure that you understand what a great deal it is because the market is changing.
And so with that a changing market, I do think the market’s gonna have a more solid base. I would think at the end of summer, even summertime, we’re going to start to see a bit of an increase.
I know the builders are dying for the market to recover because they hate giving discounts. Thy don’t normally give discounts, and in the last few years we’ve seen them give discounts like I’ve never seen before, and I know they’re just dying to see that discount start to get smaller and go away completely.
When you look at sellers, they’re so excited for the market to recover because sellers are sick and tired also of feeling like they’re giving their house away. Now the house isn’t being given away. It’s just what the house is valued for, what the market is willing to pay, and the market’s willing to pay less because of competition. Like the builders that are competing with that. There’s so many options for people and there’s so many people trying to sell their houses and not selling because it hasn’t been able to work in their favor. If I tell you your house is worth this much and you want to list it at a higher price, it’s never gonna move because it’s overpriced, and it’ll just sit there. Even if you try up really high, you’ll find that you’re not going to get the showings. You’re not going to get the activity that you want and you’re not going to get the offers that you want.
The reality is, is how do you how do you gauge all that? You can when you work with someone like myself who knows the market to help you buy a home, I’m going to give you the strategies that make the most sense. It’s going to be the best strategy for your family to move up.
It’s also super important that you’re not working with somebody who doesn’t know all the ins and outs of the market – it’s so important that they understand everything. And not by just looking at statistics, if you’re looking at statistics alone, it doesn’t give you that insight that you need to make sure you get a good deal.
Relationships are really important too in terms of who your realtor works with and who the realtor knows. We work for our client, not for the other realtors, but it doesn’t hurt when we all know each other and can actually have a good negotiation, and good ability to present your offer.
I really like to present your offer in the best way possible, doing video, and also just chatting with the other realtor and just making sure we understand where all parties are coming from so that you do get the best deal. And the time is now.
As the snow continues to melt, and it gets warmer, more buyers are coming out. So yes, more listings. They’re coming up with more buyers, and more buyers with confidence, so you may end up in multiples, which I’ve actually seen quite a few. When I get told these houses have sold, they’re telling me that they’ve been in multiple offers. The market definitely has a completely different tone to it than it did last year, the year before, the year before that. It’s really important.
Also don’t forget about the lowered interest rates, because that’s going to be a big thing. With lowered interest rates, it means your mortgage payments are going be even lower. It is the best time to buy, and the prices haven’t gone up.
The interest rates are at an all time low. I know you could get 2.29% which is so insane, take a look and see if your mortgage is coming up for renewal or if you’re on a variable rate. If you wanna lock in and fix cause that’s kind of important to take advantage of what the market is giving you right now!
It is really important who you work with. It makes the biggest difference in terms of your experience. We want to make sure that you have a really great experience. I know my team here is trying to make sure that you have the best experience. We have a lot of things in place for you whether you’re building or whether you’re buying. We have a whole bunch of things in place to make sure that you’re feeling comfortable and educated along the way, every single step of the way.
Want to get in touch with Melody Wilson?
You can reach her at firstname.lastname@example.org or 780-945-7821