According to Victoria McPherson, despite decreased sales volume in March and April 2020 due to COVID-19 closures, prices continued to rise year-over-year by over 11% compared to 2019 in markets like Niagara and Hamilton. Entry-level properties remain in demand, continuing to push values upward.
The average days on market across all residential types in March and April 2020 was 36 days. However, properties with income potential and values below $600,000 typically have shorter days on market than this average.
Properties continue to sell around asking price. While supply has decreased in some areas, demand persists for entry-level priced properties, which helps maintain values.
Victoria McPherson notes that despite short supply concerns, there are still many comparable sales available to support values for entry-level homes. The last two months of sales continued to show year-over-year increases compared to 2019, making it possible to justify current values.
Dalia Barsoum advises keeping a financing condition in your offer if possible, because lenders will lend based on the lower of the appraised value and the purchase price. If the appraisal comes in low, you must cover the shortage out of pocket. To make your offer more competitive without going firm, consider reducing the financing condition from five business days to three.
