Determining your property’s current market value
Hey there. How are you doing Walter Monteiro here again from Remax real estate center here in Cambridge, Kitchener, Waterloo. I just want to talk to you a little bit about market values, market evaluations and, and that sort of thing we’ve been running into, obviously a declining market. The prices have come down significantly since February.
I mean, if you compare it to the same time last year, it’s not so bad, but if you compare it from the peak of the market in February on average, we’re down about 25%. So it’s pretty significant if you do the math that basically works out to about 5% a month since then. And it doesn’t seem like the market is letting up quite yet the market has not up ticked.
We have noticed the inventory starting to slow down and that could be being affected because of the seasonal stuff, you know, moving,
I’ve always said August and in January are your two slowest months in the real estate business and obviously it’s coming true right now.
So that’s, what’s going on now, when somebody comes in and gives you a market evaluation on your property, I know a lot of times we always use comparables, you know, past sales to, to base our numbers on.
Obviously, that’s something that you’re gonna have to reconsider because past sales, unless you do a time adjustment for the value and the time in what you’ve sold, really do not reflect what your current market value is.
Now, you have to take a look at what your home is currently competing with. And you know, if you’re gonna use past sales, of course, make sure that you do the proper adjustment for time. So, as I said, that’s working out to about 5% a month. So if you looking at a sale from two months ago, you’ve gotta adjust that sale price, probably about 10 points.
Okay. So at any rate, that’s, what’s going on in the market. If you don’t have to do anything, obviously you don’t have to worry about it because you know, the market’s come and go, they have ebbs and flows and that’s just the way it’s gonna go but if you’re buying, it seems to be some great opportunities out there.
Is the market done going down? I don’t know. I think we’re probably getting pretty close to the bottom, but you know, I don’t have a crystal ball, so I can’t say for sure.
What I do know is that they’re hinting at rates going up. Okay. So on September 7th, when is the, when the next bank of Canada meeting is taking place, they’re talking about, you know, anywhere from half a point to a point.
I don’t think we’re gonna see a full basis point or 100 basis points, but, I think we’ll probably see a half point.
If you do the math, you know, maybe it’s worth taking a chance now and buying something because what’s the alternative to renting, wow. Renting a cheap place in Cambridge three bedroom, you’re looking at probably 24, 2500 bucks.
So you have to do the math. Isn’t worth it and go variable and just refinance later.
That’s what I would do and that’s what I’m advising my clients to do. If, and if you don’t have to do anything, sit tight, give me a call. Anytime. I’ll be happy to provide you with any information you need.