It is now clear that the entire real estate market has seen a major shift, away from a seller's market to something more closely resembling a classic buyer's market.
The continuous price increases sellers have enjoyed in recent times reached a point earlier in the year where they were climbing at about double the speed of wage increases.
This situation was never going to be sustainable and we have seen a market correction in certain price points.
Such a big shift in the market naturally means that sellers have to respond accordingly. Here are some tips to assist that process:
Condition Matters Even More - In a competitive marketplace, buyers are suddenly finding they have more choices. Homes in the best condition in each market sector will be the ones that attract more interest and sell the quickest, for the best seller returns. It's therefore imperative that you pay even more attention to the presentation of your home. Buyers are less likely to accept negative factors than they were when homes were selling very quickly.
Price Realistically From The Get Go - While it's tempting to think that you just might achieve the kind of returns that your neighbors were enjoying when they moved a few months ago, the reality is that an overpriced home will attract far less interest. The correct strategy is to work closely with your agent to arrive at a price that works in the current conditions.
Plan For Your Home To Take Longer To Sell - Remember those For Sale signs that seemed to come down almost as soon as they were put in the ground? Well today's changing market means that your home is now very likely to take more time to sell. This means that your plans after the home is sold could take longer to realize, so it's good advice to list as soon as you are able to, giving you the maximum amount of time to sell before it affects your plans. If, for example, you have a job-related move in the new year, there's no time like right now to list your current property, to minimize the possibility of entering the holiday season without things having been settled.
Stay Calm! - While the market has shifted, it's not the case at all that it has collapsed, or is likely to do so. What we're seeing is arguably the creation of a more sustainable and balanced situation and a return to normal. Buyers are still looking to find that dream home, but don't expect them to be so eager to give in to seller demands as they were not so long ago.
We hope the above advice demonstrates that there is still much to look forward to in real estate in the coming months. Please don't hesitate to reach out to us for specific advice in your individual situation.