In Like a (n Old) Lion
THE STORM – It was a Shakespearean storm. March came in like a lion at night with snow, wind, thunder and lightning. When morning came the city was covered in powerful white. The month in real estate has arrived with a similar drama.
THE TREND -From the Spring of 2022 to the second week of this past January house prices have fallen by 17.9%. The lion of the market has been lying down and licking his sore paw. In the first week of January he took one more long-tongued salve and the next week he stood up. He’s moving around now and he appears strong and steady. Selling prices are increasing and have been doing so consistently for 8 weeks
THE DEMAND – Demand is high. Showings are up. Multiple bids are numerous especially in semis and small detached freeholds but they’ve also hit a few multi-million dollar sales. Most sales leave frustrated co-bidders on the sidelines. Where do they go? Listings are too sparse. There isn’t enough game for the hungry.
WHEN TO SELL – Sellers wonder if prices will reach the peak of the covid spring within the next year. They wonder if they should hold like the wildebeest scanning the watering hole for the optimum moment – looking out for the lion pack but keen for the big gulp. Data suggests continued increases- but perhaps not at a frenzied rate and with mortgage rates up, prices will probably not hit covid highs in the near future. We are only ever certain of the market we currently observe.
WHEN/HOW TO BUY – If you hope to buy, begin your process. Be steady like the old cat but take a lesson from the young lions too. Find your position of strength. Perhaps your buying strength is in your willingness to renovate, try a new neighbourhood, or take on a tenant in a basement apartment. Accept the process may be quick requiring you to be nimble or it may be prolonged and require patience.
SUCCESS – February introduced me to more than a few sets of 30ish year olds buying their first and second homes. This demographic impresses me with their agility and ability to get things done. An old lion may hold the throne but the agile young show their skills. They’ll all be in their new homes in time for the crocuses.