Summer is summer you would think.  Real estate patterns will repeat themselves each year, but...not this year, or will they??

Typically July is slower than August which is busier than you might think.  People tend to add on to the July long weekend after school is out, to take their vacations.  

With pent up demand for travel & visiting family & friends & relaxed restrictions, people are busy.  Add higher interest rates & it could be a much slower summer in real estate.  Both Buyers & Sellers are away so fewer Buyers but also, fewer listings.  That's what's happening now, but August is just a week away.

August- will you be the August we know?  or a version we haven't seen before?

Here we go again!  This week it's "Canadian houses now selling at $200K discounts". accompanied by some variation of the "foam" or "froth" is off the market.

Yes, you can find homes that have sold well below their list price, but...what does that really mean?  Without context we don't know if the Seller was desperate to sell because they had purchased another home, the home was priced to negotiate down, the home was located in an area with a lot of homes on the market, etc.  You get the idea

When I see healdines, I want to know more to better understand what is being said.  Media want headlines that readers will click on-that's how they measure their success.

These healines are unfair as they are very general although the information is specific to certain homes which may have or have nothing to do with you.  It sets up Buyer expectations & may deter Sellers from listing their homes.

Lesson: Dig deeper-real estate is always local.

Another interest rate increase today & it's all that we'll be talking about, that & how it will impact real estate.  

Many Buyers & Sellers have never experienced rates like we currently have but these used to be the norm.  What was also the norm were PORTABLE & ASSUMABLE Mortgages.  What are those?

Portable mortgages can be moved with the mortgagee to a new property.  They are attached to the borrower so that lower interest rate can be applied to a new property.  Check with your lender to see if this applies to you, & what additional costs or conditions might apply with a new property.

Assumable mortgages are ones that run with the property & could be assumed by the new owner if they meet the lender's requirements.  That would be a selling feature for Buyers who could assume the mortgage for the balance of the term.  Again, check with your lender to see if that's a feature of your mortgage and if so, what they would require from that purchaser to approve their assumption of the mortgage.

 There are many mortgage products available to Buyers & to offer a lower rate, some mortgages may not include either of these options so very important to check on your specific mortgage & any flexibility it may offer.

What does that mean in real estate???

I posed the questions on my IG stories to see if people would buy or list their homes during the summer.  I mean, in Vancouver, summer is short so evryone wants to enjoy it but...finding a home is tough at any time of the year.  So what did they say??

Sellers were 50/50 on selling during summer & may assume there are fewer Buyers.  Buyers on the other hand, while they might not be actively looking, are definitely keeping an eye on the market, just in case. We all know how hard it is to find the right home in Vancouver!

What I know, based on my experience, is that most Buyers & Sellers out there in the summer, are serious.