Can you see what direction "Real Estate Market" is going to?
What People think and do, forms our habit of spending and investing and will shape the economy. One of the ways to see where economy is heading to, is studying people. Understand what plans they have for present and future.
In today's real estate market; you can figure out what is going on in the market by observing activities of buyers and seller.
What if you would want to see the future?
Is it fair to say read people’s mind and find out; what plans they have for future? What percentage of people are going to list their home for sale and what percentage are going to buy home?
Does answer to above questions will help you to predict possible direction of real estate market?
Good new is "now" you have access to people’s mind about real estate through below survey!
Survey was conducted of 1,073 Ontarians who are actively in the real estate market, 18 years of age or older, between May 7th and 15th, 2020.
Qualified respondents met at least one of the following criteria:
-Are actively looking to buy a home;
-Have bought or sold a home in the past two years;
-Intend to buy or sell a home in the next two years; or,
-Would have bought or sold a home in the next two years if not for COVID-19.
Here are the questions and answers:
Are you currently actively looking to buy a home?
Have you bought or sold a home in the past two years?
Do you intend to buy or sell a home in the next two years?
Total of buyers (intend to buy+ intend to buy and sell) is about 73%.
Total of sellers (intend to sell+ intend to buy and sell) is about 33%.
This means number of buyers are almost more than double of sellers, that could lead to higher competition between buyers and could result in more demand than supply which would drive prices higher. (It has been almost a decade that we have been seeing this kind of market and this may continue.)
Another interesting fact about this chart is; we have 47% of surveyed people that intend to buy (only buying). We could conclude this people are mix of first time buyers and investors! Can you guess what kind of properties are more attractive to this kind of people...
One more interesting thing; 7% of people surveyed are sellers (only sellers with no intention to buy) this small percentage of people could be mix of investors and retirees that are going to cash out and exit the market for now!
If the current spread of the coronavirus/covid 19 had not occurred would you have intended to buy or sell a home in the next two years?
Regardless of Covid-19 effect, almost 62% of surveyed people didn't intend to buy or sell.
Is your home currently listed for sale?
Were you going to list your home for sale this spring before the social distancing measures were put in place?
Would you say that buying a home today is a very good, good, average, poor or very poor investment?
This is another indication that a lot of people see real estate investment! 82% believe that buying a home is average to very good investment. No wonder everybody is looking to buy real estate! People see it not only a place to live but also an investment.
What is your intended timing to list home?
11% are serious sellers, they have big motivation and pandemic wouldn't stop them. what do you think would be their motivation? (eing in need of money? have bought another home already and need to sell what they have?....)
28% are motivated to sell and they are waiting for pandemic to be over.
61%, the big portion of people fall into uncertainty category!
What is your intended timing to purchase a home?
Are you currently or in the past 30 days have you been doing any renovations, upgrades or repairs to your home?
About what is the value of the renovations, upgrades and repairs?
38% of people that are doing renovation, spend about $3000 in average on renovation. You can imagine; nowadays there is not a lot you can do with $3000 in renovation era. (maybe some gardening, small maintenance, painting...)
Only 7% of 38% of people that are doing maintenance are spending more than $15000.
After the pandemic is over, do you think that home prices will increase a lot, increase somewhat, stay the same, decrease somewhat or decrease a lot?
Larger number of people think prices will go down and in 2nd place are people that are thinking prices will go higher after pandemic. 3rd place are people that think prices will stay the same!
There is no consensus at all! I would say another indication of uncertainty!
Has being in isolation at home changed or not changed your view of what you want in your next home?
26% of surveyed people are saying that pandemic has changed their taste about home!
How have your views of your next home changed?
Majority of surveyed people that has changed their mind about home, want a bigger home or more outdoor space. They probably want to stay in their safe bubble and enjoy life at comfort of their homes.
Small number of people are thinking about smaller homes and less financial responsibilities.
In order to cope with the financial hardship of COVID 19, have you refinanced your home or used a home equity line of credit (HELOC)?
This is a bit shocking to me! Only 11% of surveyed people had some kind financial problems! This shows majority of people are in a good financial position!
"household debt is around 170 per cent of disposable income. In other words, the average Canadian owes about $1.70 for every dollar of income he or she earns per year, after taxes. That ratio is a Canadian record, and up from about 100 per cent 20 years ago."
I would definitely agree with Bank of Canada numbers!
Would you be open, somewhat open, somewhat not open or not open to buying a house if you could only view it virtually using online tools?
This is mind blowing to me! almost 42% are open or somewhat open to buy a house virtually (online) without seeing it! I am not comfortable buying a shirt online! (kidding)
This shows that a real estate agent can play a huge role in this modern era and guide people through the process and be client's eyes.
for all charts;
*Weighted to the true population proportion.
*Charts may not add up to 100 due to rounding.
*Shaded due to small sample size.
I as real estate agent, always give all the information that my clients need, to help them make an informed decision! Every decision is unique based on one’s individual.
Contact me for free consultation.