A look at the aftermath of 2017’s real estate market
What a year it was!
The New Year is usually a great time for reflection. It’s a time when most people look back on the good (and sometimes not so good) things that impacted their lives during the year. As I reflect on the real estate market last year, I realize it was a year unlike any other in the K-W area. I’m not sure if we’ll experience anything quite like this again, and I’m not sure if I really want to either. Stress levels were off the chart for buyers, sellers, real estate agents, lawyers, mortgage brokers, home stagers and home inspectors.
Let’s take a look back at the real estate market in 2017 to see what all the fuss was about:
- It was a sellers’ market in 2017 with low inventory and a large pool of buyers.
- Presentation dates and multiple offers became the new norm.
- Houses sold quickly with sellers receiving offers well above asking price, sometimes in excess of $100,000.
- Offers were always firm. Buyers didn’t want to risk losing their dream home by including financing or home inspection conditions.
- Home inspections were a thing of the past, but it came back to haunt some buyers who discovered serious deficiencies in their homes upon closing.
- Unconditional offers resulted in many buyers scrambling at the last minute to arrange mortgages. Some buyers were forced to walk away when they couldn’t obtain financing or realized they had overpaid. Many lost their deposit and faced the prospect of a lawsuit.
For a full report on the total sales numbers for Kitchener-Waterloo read the Kitchener-Waterloo Association of Realtor’s (KWAR) report: http://www.kwar.ca/2017-big-year-kitchener-waterloo-homes-sales/
Looking ahead to 2018
Thankfully, the last quarter of 2017 showed a return to a more “normal” real estate market, but the fallout has left its mark.
- Potential sellers still have expectations of getting top dollar, but the market has changed.
- Houses sit on the market longer. A quick sale is a thing of the past as the pressure has lessened.
- Home Inspections and other conditions are now being included in offers.
- Realtors are challenged when pricing homes as comparable sales are hard to establish due to the unusually high sale prices set in the first half of 2017.
Check out Drew’s had to say when he was interviewed by CTV News:
Everyone is wondering if we’ll see a repeat of last year’s roller coaster ride. It’s still a little too early to tell, but I’ve bought my ticket and I’m ready to jump on!
If you are on the fence about selling right now, 2018 has already started off strong!
Questions? Would you like to know the value of your home? Contact us! We’d LOVE to help!