Every time I receive a call from a buyer who purchased their home during the Covid era and are looking to sell, my heart sinks a little. It's a bit like déjà vu, recalling the "Ships Start Here" frenzy when buyers who snagged homes during the buzz of proposed DND contracts found themselves not making any profit, or even losing money, when trying to sell within five years of their purchase.
So, what's really happening here? Is the market crashing? Are home prices plummeting? Not exactly. It seems that properties bought at the peak of these unusual times need to wait for the rest of the market to catch up.
Here’s a snapshot to illustrate what I mean:
Consider a property that sold on Highrigger in March 2022. Property A, a straightforward semi-detached house with 1352 sq ft, was listed at $279,900 and sold for a whopping $500,000. Fast forward to 2023, and we see two similar properties selling for $390,000 and $448,000 respectively. There’s a noticeable price difference, which can be quite disheartening for sellers today.
To all our sellers out there, it’s important to remember a few things:
There will always be "outliers," as we like to call them who will pay market value plus for a home.
The market conditions during the peak Covid years were indeed extraordinary. Many buyers at the time were from out of town, ready to pay in cash, which isn’t the norm.
Today, our market has stabilized into what we can call a 'normal' market. If we could secure the highest offers for all our listings, we absolutely would. Real estate, much like the stock market, involves both gains and losses. Fortunately, many of you have made substantial gains, especially those who moved from other parts of Canada and ended up mortgage-free by purchasing here.
If you're considering selling a home you bought before or during the pandemic, remember that you are likely still capitalizing on your investment. We’re here to help you navigate this market and get the best possible outcome when you decide to sell.
Let’s stay optimistic and proactive. We’re in this together!
