Selling your condo in 2020? Here’s what you should know
The real estate market has been indecisive lately, so if you are planning on selling your condo in the near future, it’s understandable that you have lots of questions you need to find answers for. Is it a good time to sell? Will you be able to get the desired price? Is the market strong enough?
Real estate experts have some predictions for 2020, but whether they will come true is yet something everyone has to wait and see. Last year, for example, it was predicted that the mortgage interest rates in the U.S. will be increasing for 2019, but now, after the start of the second half of the year, things are turning out to be quite the opposite. If you do plan to sell your unit in the year to come, there are some things to keep in mind, no matter how the economy changes.
Condo prices may drop considerably
A possible recession has been on the lips of everyone in the first half of the year. If this is going to happen, then the real estate market is going to shift on the buyer’s side and prices may to drop considerably.
In fact, financial experts think that a possible recession is going to hit Canada harder than it will affect the United States, for various reasons. To determine this, experts have taken into consideration factors such as the savings rate, which fell to 1.1 per cent in the first quarter of the year, as compared to the U.S., where the rate is 6.7 per cent. This means that, in the case of an economic crisis, Canadian households will have to work harder to get back on their feet.
But the real estate market is quite unpredictable and a lot can change in the second half of 2019. Bottom line is, if you want to sell your suite in 2020, you might want to do it in the first half, to avoid prices dropping too low. At the same time, if you plan on buying a new home, it is suggested to wait a bit more until the market turns on the buyers’ side.
Buyers are becoming pickier
In the events of a recession, buyers will have more power over the market, as there are simply going to be more condos for sale, than people looking to buy one. This means that the power will shift in their favor and they will become more pretentious.
If you want to have a higher chance to sell your unit, make sure it is an extremely desirable one. Make some small adjustments, invest in some modifications that will increase the value of the condo, such as making it more energy-efficient.
Millennials are going to be the next homebuyers these next few years, so you are going to want to make the condo appeal more to them. The Millennial generation is more interested in how they affect the environment, so they are going to look for homes that are more environmental-friendly.
You may have a higher chance with an agent
If you want to sell your apartment fast, hiring a real estate agent who knows the market may be your best shot. Agents are up to date with all the changes happening on the market and will be able to advise you to make the best decision. Make sure you find a reputable agent that has your best interests at heart and is not only in it for the money. Look online, ask for recommendations from friends and family and meet for a discussion before deciding on an agent.
Homeowners are often trying to sell the house by themselves, to avoid having to pay a commission for the agent. Truth be told, yes, you can end up saving quite a significant amount of money if you are looking to sell the house by yourself, typically around five per cent of the sale price. But real estate agents are charging these fees because it is their job to expose your house to a much bigger list of potential buyers. This way, they are making sure you get the best possible deal out of it. Without an agent, you are going to have to take care of preparing and marketing the house yourself, as well as reviewing all the offers that are going to come your way. Not an easy job, to be honest.
Certain areas sell better in particular months
Market dynamics are a strong indicator when it comes to determining when is the best time to sell your condo. While the national market trends are something you need to consider, you also have to keep in mind that, in some months, buyers prefer to look for homes in certain areas.
Experts analyzed the sales activity in the city of Toronto for the past 18 years and have discovered some interesting facts. While some homeowners may think that spring is the best time to sell their condo, it may not always be the case. Some areas are more searched for in the fall season. Oshawa and Pickering are, indeed, more attractive in late spring, while Simcoe sellers are advised to list their condos in February for a chance to get a higher price.
In Vancouver, fall seems to be the best time to sell your condo in various areas, such as New Westminster, North Vancouver, as well as Surrey. If you live in Abbotsford, Mission or Port Moody, then the summer is the right time to put up the “For Sale” sign. For those living in Chilliwack, Richmond or Whistler, spring may bring the best possible prices.
As the economy continues to bring up surprises, the real estate market seems to shift the power towards the buyers. If you are planning to sell your condo in 2020, you need to pay close attention to the way the market is evolving. The less stressful option is to hire an agent that can take care of these things for you and ensure you will be getting the best possible offer.