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Low mortgage rates and the effect on the real estate market in Bradford

How to make sense of—and approach—an overheated market

You might think real estate agents are rejoicing at the state of the market—scores of competing offers, sky-high prices, unprecedented demand and low inventory, but you’d be surprised. 

Miguel Melo has lived in Bradford for twenty years and seen the community grow. For him it’s about building relationships and trust, helping one family to find a home and then, years later, helping their children do the same. 

He worries about the young couples he sees who can’t afford to buy a home right now. They’re having to push further and further out geographically, hoping to find something, literally anything, that will work. 

Most recently, he has been helping a first-time buyer try to enter the market. He has had to break the news to his client, on at least six or seven occasions now, that unfortunately their offer wasn’t accepted. “I feel really bad for my client who wants to get into the market, but keeps getting pushed away,” he says.

He’s concerned, too, about his own kids’ futures. How will they be able to afford homes of their own, the way previous generations could?

“We are in an insane situation with real estate right now,” says Miguel. “Low mortgage rates drive prices up and then you get into this craziness of multiple offers and bidding wars.”

Just weeks ago, he was helping a client who was hoping to buy a property. There were over 30 competing offers for what was essentially a small cottage. Multiple offers are happening now on almost every listing.

Stories like this are, of course, discouraging. And like most realtors, this isn’t something Miguel is used to. 

The Bank of Canada has signalled that rates won’t be changing anytime soon. With the next change not likely to happen until 2023, what are buyers to do?

“It’s a good market if you’re selling, but if you’re buying, it’s tough. The market is inflated. It’s not just Bradford. Barrie is insane, Innisfil is too,” says Miguel. “The cost infrastructure has gone up and it shows in the end product. But salaries don’t go up to reflect the price of real estate.”

He advises his clients that, no matter how hard it gets, to just keep going. Clients should absolutely get pre-approved from their mortgage lender before starting to look at properties so they know how much house they can actually afford. There is no sense looking at homes that are beyond your budget. He always shows his clients as many options as he can, so they have the fullest picture of the current market and can see for themselves what’s out there. 

In short, despite the crazy market conditions, there is no giving up. Miguel is committed to the battle and will do everything he can. 

And hopefully it’ll be the start of a lifelong friendship.

For more information, visit Miguel Melo, Realtor or call 905-715-4168.