Let's talk about a buyer’s market and why you should invest in Real Estate now! Realty Executives Gateway is a Real Estate Team here in Melfort, SK and area and Richelle Rogers and Eleah Sims are your local Real Estate Experts.
So, before we explain the 3 reasons you should invest in today’s market, let’s get into what a buyer’s market means:
A buyer’s market is when there are more sellers looking to sell homes than there are buyers looking to buy them; simply put, it means that supply exceeds demand. This is definitely true in our market. There are currently 56 homes listed on the market in Melfort, with almost 1/3’s of those having been on the market for more than 90 days (17 to be exact).
The average days on market is a good indicator of whether or not a buyer’s market exists. At the end of July, 2020, the average days to sell was 136, up 61.9% from 84 days last year (and above the 5-year average of 102 days and above the 10-year average of 93 days).
So now that we’ve discussed a buyer’s market let’s dive into the 3 reasons why you should invest in this type of market.
1. Low Interest Rates - July 4th, the Bank of Canada lowered the interest rate to 0.25%, bringing borrowing costs to the lowest since June, 2018. It is the first time since March 2009 that the central bank has reduced rates by that much.
2. Real Estate Prices are Low - In the last 10 years, 2016 had the highest recorded average sale price of $216,000, which is 12.5% higher than the average sale price at the end of 2019. Prices are down, which makes now a great time for a first time home buyer to enter the market.
3. The Buyer has Negotiating Power - The fact that there are so many homes on the market and the average days to sell has increased means that buyers have the upper hand at the negotiating table. There’s a greater chance of getting an accepted offer below asking price.
So there you have it, if you or someone you know is interested in buying real estate, then there is no better time than now to do it!