Guest Blog with Laura Snyder Realtor: Market Trends 2021
Introducing Laura Snyder Realtor with ReMax Medalta Real Estate.
Laura will take us through the market trends for 2021 & what it means for buyers and sellers this year.
If you have any questions related to mortgage financing make sure to reach out.
Market Trends | 2021
Medicine Hat & Area Market Trends
As a real estate agent, the question I get asked most often is, What is happening in our market? Typically this can be summed up quite simply, as our market has not changed much over the last several years, with only slight adjustments here and there. But with all the challenges 2020 has brought, significant changes have occurred. So, what does it all mean for the Medicine Hat & area real estate market now, as we move forward into 2021? Whether you are buying, selling or simply want some insight into our market, here are the trends you will want to know.
1 | THERE ARE LESS OPTIONS OUT THERE FOR BUYERS
One of the biggest developments in 2020 was the low number of homes on the market. Inventory was down 12.8% in 2020 from the previous year. That number is significant for both buyers and sellers.
WHAT DOES THIS MEAN FOR BUYERS?
Less homes on the market = more competition between buyers. In a market where there is more demand and less supply, you will need a clear idea of exactly what you want! This way, when that perfect home comes up, you will be ready.
Make sure you are set up on a customized home search so that the minute that right property hits the market, you can act quickly.
Get pre-approved! I cannot stress this enough. It is no longer accepted to put an offer in without a pre-approval. Having a pre-approval means that you are ready to make an offer when the time is right. APPLY NOW with Jayne
WHAT DOES THIS MEAN FOR SELLERS?
There is less competition out there when selling your home. It is still incredibly important for homes to be priced properly. Homes in this market still have the potential to sit if they are not priced and marketed competitively. Despite the advantages some sellers may be feeling, we are not quite in a seller’s market.
2 | AVERAGE HOME PRICES ARE ON THE RISE
The average sale price increased by 6% in 2020. Although very exciting news in our market it does not necessarily mean that all sellers saw a 6% increase in their sale price. This gain can be significantly attributed to more high-end homes selling. The most expensive home selling for $1,420,000. Tighter market conditions have also played a role as well though. As we move into 2021, it is likely that we will see this trend continue.
2019 - Average Sale Price $280,044
2020 - Average Sale Price $296,986
6% increase in home sale prices
WHAT DOES THIS MEAN FOR BUYERS?
Have an experienced agent on your side that can help ensure you get the best price at the most favourable terms.
Know your budget and stick to it. There has been an increase in multiple offers on homes. Knowing ahead of time what you are comfortable offering can help you make a sound decision quickly.
WHAT DOES THIS MEAN FOR SELLERS?
It may mean a slight increase in profit, but really it most likely means that if your home is priced competitively, you could enjoy a much quicker sale alleviating the stress of having your home sit on the market.
3 | HOME SALES ARE HOLDING STEADY
Our sale stats in 2020 did not follow the typical pattern that we usually see throughout the year. Our spring market was a complete bust. Thankfully, stronger sales in the second half of the year ended up leaving us with a 2.1% increase y/y. From June to December 2020 we saw a 19.1% increase. Considering the low inventory matched with an increase in sales we moved from a buyer’s market to a balanced market by the end of the year. The trend is giving us hope for a great 2021.
WHAT DOES THIS MEAN FOR BUYERS?
If you are thinking of buying, start the process early. Getting organized and being prepared will give you an advantage when the time is right.
WHAT DOES THIS MEAN FOR SELLERS?
Sellers will need to ensure that their realtor has provided them with a solid marketing plan for their home. One that makes their home stand out and appeals to buyers.
Sellers have the potential for a quicker sale if they are able to draw in the right buyer.
4 | MORTGAGE RATES ARE STILL LOW
Low mortgage rates fueled our market in 2020 and haven’t started to decrease yet.
WHAT DOES THIS MEAN FOR BUYERS?
This means an increase in affordability for buyers. Make sure you discuss all your options with your mortgage broker so that you have a solid understanding of what your down payment, monthly payments and mortgage terms will look like.
This is a great time to buy, if you are ready!
WHAT DOES THIS MEAN FOR SELLERS?
If you are thinking of selling, now is the time. Low mortgage rates have been bringing more and more buyers out. From first time home buyers, revenue seekers to those looking to upgrade, great rates have created more demand and a much quicker moving market.
So what is the big takeaway! For me as an agent and homeowner the biggest takeaway is that we made it through 2020! Medicine Hat & Area’s market fared very well compared to other cities in our province. I am optimistic about the future and the direction we see our market going.
So, what now? Reach out and contact me. I am here to talk about real estate, answer all your questions and come up with a successful strategy to ensure you are able to buy and sell with confidence.