Selling Your Real Estate During a Financial Crisis – Old Home Problems
OK, so the world is in a bit of a panic right now and that’s got the financial markets crashing. Winnipeg tends to weather these storms better than most cities across the country, but what about those among you who had plans for selling your properties here in 2020? Have prospects changed? For owners of older properties it definitely has. Let’s review.
Two Big Things Owners of Older Homes in Winnipeg Need to Know About Selling Their Properties During the 2020 Financial Crisis
It May be the Biggest Buyers Market of All-Time (sucks for you)
Last month in our real estate market news update (click here to read) we discussed the ever-dropping mortgage rates and how that doesn’t favor your predicament as a seller at all. Things just got a lot more dire, as in the first week of March the Bank of Canada announced another cut in the prime rate, while the bond yield continues to fall. This causes a drop in variable mortgage rates and fixed mortgages rates, respectively. This buyer benefit is compounded by the adjusted (relaxed) mortgage stress test which takes effect in April.
When you factor in the fact that Winnipeg homes have the lowest average cost when compared to all other major cities across Canada, you can see that buyers’ purchasing power is very strong. Even worse (for sellers) is the fact that recent residential construction in highly attractive live-work-play communities has increased the supply significantly. But it doesn’t stop there. There are also fewer international buyers entering our local market, and with the global health crisis continuing to grow (fueled more so by the headline-seeking media) international real estate investment will fall further. This trend also increases the available supply for Winnipeg and Southern Manitoba residents. Greater supply not only helps keep prices low – it gives buyers a much greater number of options. They can now be picky when it comes to buying a home – that effectively makes older and run-down fixer-uppers far less attractive. Buyers no longer have to concede and give up their dreams of a dream home during this particular financial crisis.
While this may serve to stimulate the local economy it certainly doesn’t help your cause.
Do You Have Any Options?
Realtors and real estate agents are switching focus to service buyers by connecting them to sellers of premium properties as a means to secure higher commissions to keep themselves afloat during the 2020 crisis. They have no interest in promoting much less listing your older property. And with the aforementioned buyers’ purchasing power and access to favorable supply you will have little to no luck selling the property on your own, be it at an auction or other form of private sale. Are you completely without options? What about if you are nearing foreclose and have to sell ASAP?
Don’t worry, you still have a solution that will deliver you fair market value despite the financial crisis. Better yet, you can get cash in hand within the week of our first meeting to look at your property. And don’t worry – we don’t care about the condition or cleanliness (or lack thereof) of your property. You don’t have to renovate, fix, scrub, or sweep a thing if you don’t want to. We can see the forest for the trees. To be honest, this crisis can kiss our rears. We’re here to make sure you don’t fall into arrears and are here when no one else (i.e. a real estate service provider) is. We will give you the opportunity to come out on top while everyone else scrambles to figure it all out. All you need to do, is pick up the phone and call us today at 204.222.0022.