How to Effectively Manage Expectations in a Changing Real Estate Market
After experiencing increasing prices in the real estate market for nearly two years, we have started to see a shift in market activity during the second half of this year. In their October News Release, The Canadian Real Estate Association (CREA) Chair Jill Oudil quotes, “September was another month of lower sales…It makes for an interesting dynamic, one that doesn’t really have many historical precedents. The market has changed so much in the last year, and the adjustment to higher borrowing costs is still underway.”
Perhaps the greatest change we’re currently seeing is the demand for buyers to make quick decisions. With far fewer buyers in the market and more inventory to choose from, buyers recognize that for the most part, time is on their side. Many buyers want to have the ‘near perfect’ property before submitting an offer. In a market where there is more supply than demand, pricing will typically soften and trend downwards.
If you’re a seller, it’d be wise to shift your expectations to meet the shifted demands of the market. First, you want to do everything possible for your home to hit the market well. This means decluttering, deep cleaning, and completing necessary repairs and paint touch ups to help your home present its best. Also, pricing your home competitively is key. If you start too high, you could end up following the market downwards and net less at the end of the day. You also want to consider realistic selling time. Maybe in the past year you talked with a friend or neighbor who sold their home and moved out within 30-60 days of listing. Realistically, this process could be up to four months today.
Effectively managing expectations comes with managing one’s emotions to meet this market. We understand that buying and selling a home is perhaps one of the most emotional processes a person goes through. Patience is key. You probably will have a few days or even a week without a showing. This is ok. Try not to get overly concerned or worried as this is a new normal for this market. Should your home be on the market for 30 days without the expected showing activity or an offer, you might need to consider reducing the price. This is not a market to sit back and wait to see what happens. We are in a period of rapid macroeconomic factors including rising interest rates, inflation, stock market fluctuations and now higher real estate supply. If you need to sell your home, putting your best foot forward with price, presentation and patience will be required.
Most importantly, if you’re thinking about buying or selling you want to get more information to ensure you’re making the best decision. Whether you’re a first time buyer, thinking about selling, or just want to talk about what options might be available for you, contact us today! We’d be happy to see how we can help you achieve your real estate goals!
Jason Rustand with RE/MAX Real Estate serves with the highest level of integrity and excellence every time. For more info on this topic or others related to real estate contact LIKE our Jason Rustand Team Facebook page, call Jason direct at 780.919.0004, email email@example.com or visit WeSellLeduc.comSource: https://creastats.crea.ca/en-CA/