Find out why now is the best time to sell your Fraser Valley property or any investment properties you may have...

Everyone thought Covid19 would be long gone by now, and even with it wreaking havoc on many business and people worldwide somehow, real estate investors have been among a rare species who've gained rather than lost in this pandemic.

Do you wonder why? It's because homes have sold (and are selling) faster than ever in 2021.

During this time the real estate market has become red-hot and the demand among buyers of properties has been increasing. This means if you own any real estate investments, or fix and flip properties, you may want to consider selling right now.

Read on and find out SIX reasons to sell your Fraser Valley property now, and not later...

1) 2021 Proved to be a Sellers Market

There's absolutely no doubt real estate is a 'seller's market' right now. Every survey and statistics chart proves it! According to Zillow, the total number of sales in real estate will be slightly higher than they were in 2020 and, 2020 was the most active year since 2006. Clearly the housing market of 2021 has promise and potential, because people ARE buying. In fact in the Fraser Valley area it is not uncommon to have multiple offers on one property, the first day it hits the market. However changing times means, no guarantees this momentum will continue into coming years.

So, think about it and act swiftly!

2) Potential to Ask a Higher Than Usual Price

The thing is, ever since Covid19 hit globally, the supply of homes decreased. Canadian housing stats show us early in 2021, there were 40% fewer homes on the market compared to the same time last year. One of the reasons for the low supply was people being locked inside their homes. Most sellers weren't willing to do a showing for potential buyers during the peak of this pandemic and homes that were listed got snapped up quickly...  

As the year approaches its end and everything starts getting back to normal, supply is slowly increasing

Luckily there's still time to use the 'low-supply' leverage and expect a higher price when you sell!

3) Interest Rates are Low

One of the main reasons buyers are desperately looking for homes is interest rates. They've been at an all-time low throughout this pandemic. However, stats show that interest rates likely won't remain this low, and In fact, they're already on the rise.

Low interest rates mean low mortgage costs for buyers and that's why you can expect them to queue up and bid for your house if you sell now.

Maybe not next year, when the rates are even higher!

4) Future Foreclosures May Lower Demand

When the Corona virus pandemic hit, the Canadian government ordered relaxation on foreclosures. People were losing their jobs and their incomes slumped, making it difficult to pay their mortgage. As of next year, this relaxation will be removed meaning that there is a possibility a whole lot of people may lose their homes and unfortunately a lot of those properties will be back on the market.

With the possibility of so many upcoming foreclosures the market may have a higher supply of homes, meaning prices may fall - higher supply, lower prices. Right?

5) Older Citizens' Properties to be Listed

Did you know that senior citizens currently house about 21 MILLION homes in the Canada?

So, what's the point: older generations will also lose (or move out of) their homes in coming years, for various reasons. Like, failure to pay the mortgage, moving in with relatives, assisted living, etc.

This may create another influx of properties hitting the market and becomeing available to be sold...

Increasing the supply again and most likely driving the prices down. In short creating a worse situation for you, the seller.

6) Loss of Leverage After Covid19 Ends.

Last but not least, as the Covid19 pandemic clears out and we adjust to our new normal, the upper hand that came with these unusual times, that were offered to sellers may soon dissapear. Interest rates most likely wont be low forever and the short supply of home is projected to change. New housing schemes, higher interest rates, business revival and more options for buyers in 2022, may start to work against you

Now is the time to take action and sell your property for top dollar. Talk to your real estate agent for an expert opinion and peace of mind.

Best of luck!

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Sources:


https://www.zillow.com/sellers-guide/should-i-sell-my-house/

https://houwzer.com/blog/should-i-sell-my-house-in-2021-realtors-weigh-in

https://www.fool.com/the-ascent/mortgages/is-2021-a-good-time-to-sell-your-home/

https://www.cbc.ca/news/business/crea-housing-october-1.6249145

https://www.reuters.com/article/us-health-coronavirus-canada-towns-idCAKBN2CU0XJ

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Planning to buy a vacation house? MAKE SURE you read through this guide first!

The very idea of owning an vacation home has a sense of accomplishment all on it's own. Because who wouldn't love to OWN a home in a place where they can commune with nature, feel the fresh salty sea breezes, or view the majestic hilly scenes, right?

 

So, owning your personal vacation home may be one of your big fantasies too… Or, perhaps, you've already decided to buy one for yourself? Have you?

 

Well, if you have… Stop! Before you sign that dotted line and have the home transferred to your name there are things to consider.

 

Buying a vacation house is NOT only about sensations and aesthetics, there is money involved. So just as you would do with any real estate deal there are some serious realities to look at before you pick your dream vacation house.

 

Below are the 4 main things to consider before buying a vacation house.

 

Read and reflect…

1) Ahem… Can You Afford It?

Well, believe it or not, just last year the real estate industry saw a giant leap of 44% growth in the sales of vacation homes across Canada. With that, one thing is clear, the demand for vacation properties is super high and the market is on the rise. But can you afford to buy a vacation house at all, with the demand at an all-time high already?

 

Before you make a decision become familiar with all the costs that are attached with owning your vacation house. Apart from the purchase price, there are various other costs to deal with, like…

 

- Taxes

 

- Strata fees

 

- Insurance

 

- Utilities

 

- Security costs

 

Also, additional props like jet skis, motorboats and other fun stuff necessary for a vacation will contribute to the costs. So, will you be able to afford them? Really think about it.

 

Talk to a real estate expert and get their expert advice to help you setup your budget if you want to avoid buyer's remorse later on.

 

2) Let's Talk Rentals…

If you're looking to buy a vacation house from the investment perspective check if there is potential for rental income at all?

 

This means getting familiar with what is renting in the area, and what are they renting for. Make sure they'll cover your costs to own…

 

For financing tell your lender that you aim at renting it out so their plan is in line with the laws for rental vacation houses and not ordinary real estate. Also, many communities have restrictions on renting altogether so make sure that's not the case with the property you are looking at obtaining or your investment will be a total waste.

 

3) The Location!

Location is one of the most important things to consider. Do you want to spend your vacations in a quiet, serene place or you'd like to spend time in the middle of a vibrant city?

 

It all depends on your personal choice. But make that choice consciously. Also, consider how far or close do you want your second home to be to your current residence.

 

Should it be just a quick drive from your primary home one that you can go to every weekend in the summer? OR are you looking for more of a beach house, where you can spend a week here or there once or twice a year?

 

Ask yourself these questions even before you start looking for your dream vacation house!

 

4) Who Will Watch In Your Absence?

Think about who is going to look after your property when you're away. Are you going to be away for most of the year since it's your vacation house, and not your permanent residence?

 

Leaving your home away from home unchecked for long periods will not only up the risk for theft or vandalism but any unnoticed leakages or frozen pipes can also seriously damage your property.

 

Plus, if you intend to rent out to vacationers the maintenance of creature comforts (food, TV, medicine, etc.) will be necessary as well. So, for this purpose you'll need to hire a property manager for your property's upkeep - and for your peace of mind!

Now Is the Time to Invest!

Once you've given enough thought to the four points above and decided on a clear and realistic plan for each of them, then… It’s time to invest, and there is no better time than now!

 

As mentioned before, people are looking for vacation homes right now more than ever before and the market is seeing a boom.

 

Sit down with a property expert, analyze your objectives, double-check your plan…

 

… and once you have, you're ready to INVEST!


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The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.