As everyone has noticed, the Real Estate market in Hamilton and Southern Ontario has certainly changed. And Robert Floris’ Mortgage Architects office in Hamilton, we like to share information as we see it and relate it as if we were the reader. Thankfully, the local housing market is more balanced. We do not have the frenzied pace and acceleration of prices like in the spring.

As of today, this is how we view the market and how different tactics are being used in this environment. In the spring, the psychology was, I had to buy a home and then sell my existing dwelling and at the time it was the correct way to think. With a more balanced market, our clients are buying their new homes only with the condition of selling their existing homes. They are also adding other causes such as conditional on financing and inspection. With bidding wars earlier in the year, conditional offers were not taken seriously. In my humble opinion, today’s market is the more intelligent way of purchasing, especially when we consider the dollar amount of the purchase.

Realtors listing price strategies have changed. In the spring with so few homes for sale, and so many buyers, prices were initially priced low to create a bidding frenzy. Later in the spring, prices were listed at much larger amounts hoping to sell at a never before higher price. Today the prices have to be marked correctly or it will get stale and not sell.

How about market psychology? In the spring purchasers panicked that if they did not get into the market immediately, they would be priced out. Today the environment is perceived as soft, and many purchasers are waiting patiently in the hopes of a future lower price.

In Toronto some sellers are going to strategies that have not been seen in many many years. They are having reverse offers. A reverse offer occurs when you really badly need to sell your home. If clients who have visited the home twice and appear semi-interested, the seller will approach the buyer to offer them an incredible offer.

Here is an interesting situation occurring in the U.S. A company will give you the down payment to purchase your home but with one catch: one bedroom must be used to rent out in Airbnb!!

No matter what side of the fence you’re on, do your homework since the market is constantly evolving. Always use a real estate agent who is professional and keep up with the trend. We at Robert Floris’ Mortgage Architects office will be happy to provide a referral with the professional we believe in.

Robert can be contacted at 905-574-9200 Ext. 215 OR by email at mortgages@robertfloris.com. You can fill out an application online at https://application.malink.ca:8112/App/MARC/FLORISR/en-ca/1896 with absolutely no pressure and no obligation.

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