Is This the Year to Sell My House? - January 7, 2021

Is This the Year to Sell My House?

If one of the questions you’re asking yourself is, “Should I sell my house this year?” consumer sentiment about selling today should boost your confidence in the right direction. Even with the current health crisis that continues to challenge our nation, Canadians still feel good about selling a house. Here’s why.

In the GTA, consumer confidence is remains high – record breaking high! According to the latest Toronto Real Estate Board statistics for December, there was a record number of December home resales and a new record in 2020 average selling price.
 

Data indicates that despite the unprecedented year resulting from COVID-19, including the necessary public health restrictions and the economic uncertainty, the GTA has reported over 95,000 home sales in 2020 – the third best on record. And the average price has set a new record of almost $930,000. As you can see, market activity alone indicates that many still believe that, despite everything going on in the world, it is still a good time to sell a house.
 

Why is now a good time to sell?

There simply are not enough homes available to meet today’s buyer demand, and they’re selling just as quickly as they’re coming to the market. According to industry reports, unsold inventory available today in the GTA, depending on your specific location, sits at a less than four to six weeks supply at the current sales pace, which is down from previous months. This record-low inventory is not even half of what we need for a normal or neutral housing market.

With so few homes available for buyers to choose from, we’re in a true sellers’ market. Homeowners ready to make a move right now have the opportunity to negotiate the best possible contracts with buyers who are feeling the pull of intense competition when it comes to finding their dream home. Lawrence Yun, Chief Economist for National Association of Realtors, notes how quickly homes are selling right now, further confirming the benefits to sellers this season:

“The market is incredibly swift this winter with the listed homes going under contract on average at less than a month due to a backlog of buyers wanting to take advantage of record-low mortgage rates.”

However, this sweet spot for sellers won’t last forever. As more homes are listed this year, this tip toward sellers may start to wane.

According to Danielle Hale, Chief Economist at realtor.com, more choices for buyers are on the not-too-distant horizon:

“The bright spot for buyers is that more homes are likely to become available in the last six months of 2021. That should give folks more options to choose from and take away some of their urgency. With a larger selection, buyers may not be forced to make a decision in mere hours and will have more time to make up their minds.”
 

Bottom Line

If you’re ready to make a move, you can feel good about the current sentiment in the market and the advantageous conditions for today’s sellers. Let’s connect today to determine the best next step when it comes to selling your house this year.

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