Setting Expectations: COVID-19 and Real Estate

 

Setting Expectations - COVID-19 and Real Estate

Our founder, Tino Sisca, recently hopped on a call with Matthew Fusco, Partner at Marchese Fusco Real Estate and Sales Representative with Century 21 Leading Edge Realty, to discuss the current real estate market and help set realistic expectations regarding home buying and selling. Combining the insight of both construction and real estate professionals helps us bring you the most well rounded and honest information.Matthew & Tino Setting Expectations


Keep on reading for part 1 of our Setting Expectations series, kicking off with a conversation about the state of the current housing market. Get advice from both industry perspectives and subscribe to follow our series.

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Tino: Overall, how would you say that COVID has impacted the market from last year to now?

 

Matthew: It’s been an interesting year! I think it came as a surprise to many as to how active the market was in the last quarter of 2020. Typically last quarter is "Investor Season" and is a slower time of year, but it ended up being hotter than the Spring/Summer market of last year. Moving up to this Spring 2021, sales have increased even more. There's not enough homes for sale to support the number of home buyers out there. 

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We are in a seller's market right now. You’re getting top dollar for your home! Houses are selling within 3-4 days, making it an easier transition for families to sell faster and plan now for the future.

The transition from Winter to Spring in Ontario brings a lot of excitement to everyone, and homeowners see this as an opportune time to buy and sell real estate. Spring represents new beginnings, and it's the perfect time to start new chapters and make movements.  The affordability factor, on the other hand, is definitely intimidating. Those looking to upsize from their family home have now seen the value increase by 150-200k just over the last year. Families are scared that prices will continue to go up, even more, so they are definitely deciding that it’s time to get in. Looking at this move as an investment for the next 5-10 years is reassuring because the market can change a lot within that time frame.

 

Tino: We’ve definitely seen families looking to move and hoping to get their foot in the door quickly. In regards to buyers, are you noticing a major difference between investors, builders, and end users?

 

Matthew: Absolutely! InvestorWith that comes the need to get smarter with what you’re doing and how you’re doing it. Maximizing profit has been difficult over the past year because of lockdowns and permit timelines. 

I’ve seen a ton of people looking at adding income potential to basements. This is increasingly common in single family homes as they’ve had difficulty transitioning to these higher priced homes, so adding that income potential by finishing a basement gives people the opportunity to rent out and help support the higher cost of houses today.

Builders, on the other hand, are buying land more North, in areas like Wasaga Beach, Muskoka, and Barrie. We're finding that there is a really high demand from the public for waterfront and non-waterfront properties in these Lakeland communities. Builders are jumping on the opportunity to provide more inventory to the public in this market. 

COVID has had people concerned about living in close quarters, like the living situation in most condominiums.

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The cost of land is also much more favorable up North, and it's allowing builders to get more creative and contribute to the demand from the urban sprawl, which I think is great. 

In terms of end-users, there were families who decided against competing in the resale market and looked to pre-construction. A lot of families were striking out of the market and the cost of real estate kept going up. This worked well for many because it also allowed them to break up their down payment, while also the added plus of allowing them to customize the finishes of their new home.
 
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This has been a popular alternative because it allows you to break up your down payment. You're purchasing a brand new home with a warranty that you can personally customize to your family's preferences. Alternatively, end-users that decided not to sell their homes have decided to invest in finishing their basements and backyards to add more square footage to their homes and utilize all the space they have, both indoor and outdoor. 

 

Tino: I can confidently say that I have friends and family members who have done or are doing the same. It’s a tough market, but there are definitely ways to navigate it with the support of friends, family, and professionals. Thank you for taking the time to speak with me today, Matthew. It’s been a pleasure and I’m looking forward to sharing this information with anyone that needs a helping hand in these uncertain times.

Blog Line DividersWith insight from both the real estate world and the construction world, we will aim to keep you informed on the changes of the market and what the current best practices are. Blog Post 2 - Trust (1)Our goal with this series is to bring you information between both industries that may not be readily available or easy to find. We want to help you feel informed and confident, whether you are just hungry for information or ready to take the leap to build or buy. It’s clear that our world has been impacted by COVID-19, so we hope that everyone is staying educated, and most importantly, safe. 

Blog Post 2 - Questions_Feel free to leave any questions or responses in the comments for our team and Matthew! We will be also releasing more blog posts to continue this series, so subscribe to our blog below and stay informed with Corrente.

 

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