When higher interest rates are a GOOD thing
Real Estate Conversations
Scenario:
You have sold your property and have a sum of money sitting in your account
You want to purchase but aren’t ready for a year or two - you want to wait but you DON’T want your money just sitting there doing nothing but tempting you to spend it
Solution:
Invest it in a GIC
When interest rates go up GIC & Cash Rates go up as well.
For example; approx. 2 years ago you could park your money and be guaranteed about a 2% return
NOW you park your money and you could be earning 5+%
This could be a great option for some folks looking to have their money work for them while deciding their next property moves
NOT bad for making money while you sleep!
Market Conversations
What YOU need to know & Why YOU need to know
I was chatting with a very beautiful soul and she sweetly said
“Everyone puts the data out, but no one explains WHY I NEED TO KNOW THIS”
The following are just a few reasons why you may want to know these market stats.
Some are essential, some are just interesting but all are vital when making your real estate decisions
Here You GO ….
Average Closed Sale Price - Track Trends & Set Expectations
New Listings - Track Supply & Choice
Properties SOLD - Indicative of the Health of the Market
Days On Market - Determine Speed of the Market
Expired & Price Decreases - Indicator of Market Trends
Noteworthy:
Sellers this week were able to secure on average 99% of their list price … but when dialling down we saw that the sellers didn’t get their ORIGINAL asking price
23.75% of the properties sold went over the asking price by an average of 7%
Barrie, Innisfil and Orillia take the top spots for the number of properties that went over asking. Barrie x 12 Innisfil x 4 and Orillia x 4
The average sold price of the properties that went over asking was $768,300 which is below the region’s average - so this tells me there is heavier competition in the lower price bands
Why track over asking? Because I can prepare the best strategy for your specific goals AND I am just curious
Disclaimer: I collect my data from TRREB & ITSO and rely on their accuracy. I also do my very best to not make any errors, but I am human, so please reach out to verify numbers for your specific goals, property & location before making any life changing decisions!
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Mortgage Conversation
Did you know Mortgage Brokers can have access to 50 +/- rates on their daily rate sheet
Jennifer Fee from Centum Mortgages explains she can access so many options and tailor approvals to meet your needs
This morning she shared with me that the best 5 year fixed, 25 year amortization, for a residential property under $1m with 5% down is floating in the range of 5.34%
A middle of the road variable is running about 6.3%
Noteworthy:
Some borrowers are taking a 2-3 year fixed to ride out the interest rate hike
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“Logic will get you from A to B. Imagination will take you anywhere.” Albert Einstein
Have a beautiful day and I look forward to having more conversations with you!
Sending High Fives
Melissa