Q & A: Industry Experts Discuss the Fredericton Real Estate Market
After months of buying and selling activity being put on pause, the Fredericton real estate market is back in action. The introduction of new technology and safety precautions has been an adjustment for those involved in the buying and selling process. With that being said, residential sale activity in the province is expected to continue to accelerate throughout the summer months and beyond. The REALTORS® at The Right Choice Realty have fully embraced the new normal in their industry. Their team of experts understand the depths of buying and selling right now and are here to provide you with insight on the current Fredericton real estate market.
How has the pandemic impacted the Fredericton real estate market?
When considering the impact of the pandemic on the real estate market, it’s important to have a thorough understanding of all dimensions. Sarah MacDonald is a REALTOR® on the Right Choice team with a focus on residential clients. Alternatively, Jim Yerxa is the broker at The Right Choice Realty, as well as a REALTOR® who specializes in commercial listings. With differing areas of expertise, The Right Choice Realty has an in-depth understanding of the entire market.
“Speaking to a residential standpoint, the real estate market is doing just fine, though it is very competitive. After two months of the market essentially being shut down, people are eager to buy and sell. We are currently in a sellers market, meaning there are more buyers than homes to sell. Because we are facing low inventory levels, offers typically result in “bidding wars”, otherwise known as multiple-offer situations. Additionally, mortgage rates are low. People are benefiting from taking out a mortgage right now, which is another factor contributing to a competitive sellers market. Overall, the residential market appears to be pretty strong. This is an indication of how good a job Fredericton and New Brunswick have done during the pandemic.”
“From a commercial standpoint, the market is at a standstill. There is a lot of uncertainty as companies try to figure out what business is going to look like on a go-forward basis. Office tenants are considering working from home options as a real possibility for the future. Mom and pop retailers are struggling with the uncertainty and the likely shift to more online sales. Many landlords have had to work with their smaller tenants to come up with a plan to allow for rent to be abated as the tenants have had no income. It will take some time to figure out the full impact on the commercial real estate market in Fredericton.”
How has the pandemic impacted being a REALTOR® in Fredericton?
Mike Lint is a full-time licensed REALTOR® for The Right Choice Realty. He works with both buyers and sellers to ensure that his clients are properly educated and making informed decisions.
“During the height of the pandemic it was a bit more difficult as there were a lot of sellers who weren’t comfortable having people tour through their home. Similarly, buyers who weren’t comfortable going to visit homes. This led to more virtual tours which makes it hard for someone to make such a life changing decision without ever physically seeing the property. With that said, I think this also helped our company and the real estate industry in general in learning how to use different tools to better market properties.”
What does The Right Choice Realty do differently now?
Brent Urquart is a licensed REALTOR® and the Deal Coordinator at The Right Choice Realty. Brent is responsible for capturing all photo and video footage and putting information together to create new listings for the company. Brent had to diversify the ways he performed his duties as his role heavily revolves around being in people’s homes.
“During the pandemic we had to think outside the box in ways that we could market a property, so we invested in a couple new items. First, we got a new drone that has been very helpful in taking those hard to reach pictures. The drone can fly up to 400 feet which helps paint a bigger picture of the property and its surrounding areas. What we think is the best investment, is the purchase of a Matterport camera. This gives us the option to provide a 3D tour of a home that the client can virtually walk through. Where we were unsure how eager the public would be to physically see a home, this has proven to be a very effective way to bring the home to them.”
The new technology that Brent and the Right Choice team have grasped has proven to be effective for their clients. Although restrictions are loosened, they will continue to make use of their innovative solutions.
Do you have any suggestions, tips or reminders for buyers and sellers in the Fredericton real estate market?
Advice from the team of REALTORS® at The Right Choice Realty:
It’s all about managing expectations, both on the selling and buying side. While it is a sellers market it’s important for sellers to understand how to take advantage of the market. This doesn’t necessarily mean you can ask an unreasonable price for your home. The best option is to make sure your home is priced competitively and try to capitalize on that by creating a multiple offer situation. In turn, this can raise the price for your home.
On the buying side, it’s very important to make sure buyers aren’t getting caught in a situation where they are overpaying for a home. This is challenging in the current market because properties that are priced competitively have multiple offers within hours or days. As a buyer looking to purchase in this market, you have to make sure that you have done your due diligence. You have to be proactive if you find a house that you like. Since we are experiencing such a competitive market, you won’t have the opportunity to think about it for long before making your decision.
The team of experts at The Right Choice Realty are versed in predicting housing trends, assessing value, negotiating on your behalf and closing deals. They strive to make you feel confident in your buying and selling decisions and ensure that you are wisely investing in your future. As the Fredericton real estate market has proven to be resilient, so are Right Choice REALTORS®.
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