”If anyone read my article before Christmas they would know my thoughts on our market and how the low levels of supply add a certain resiliency. Well, it’s March 7th, and if the first 2 months have been a cross section of what to expect this year, then its groundhog day again (and I don’t mean when Wiarton Willy looks for his shadow, but the Bill Murray movie where he has to re-do the same day over and over again. Boy, I should give readers more credit to figure that out, but wanted to make sure).
Ok, moving on …
Nothing but traditional real estate this spring.
Even after the dramatic rise in prices we saw between 2016 and 2017 the market is nothing but traditional this spring, with not enough good supply and still a tremendous audience trying to get into the market or upgrade within it. The best part, the real estate market it makes sense.
The start to the year has been excellent, with properties selling quickly and buyer agents still having to be sharp to catch the right property before it sells. The best part of this market though, is that it makes sense.
Multiple offers are great for sellers but the prices make sense for the buyers as well.
The steep jump in prices that were prevalent in 2017 have abated and common sense seems to have returned. A healthy sense of reason has reappeared in the market bringing more peace of mind to both buyers and sellers.
The facts about our Guelph properties have been the same for as long as I can remember;
more people want in than out. New construction availability is still low and not cheap and the upward price pressure on resale continues. Hey, great locations are still great locations. This makes sense in any climate; what can’t be easily replaced offers a greater level of demand, and establishing market value is easily accomplished in any conditions.
One difference we have noticed though is the demand in certain price brackets has weakened a little.
The number of sales in the higher price ranges seems to be down. Now, with 2 months of sales to speak of, weather may indeed be the largest factor – only time will tell. I feel that many homes in a higher price bracket have an exterior component that requires promotion. A well appointed backyard pool and impressive landscaping cannot be well appreciated until the weather improves.
Certainly, new government guidelines on the lending industry – known as ‘stress testing’ will also play a role in market demand in the higher price brackets.
It is the early days yet. We will soon see how the market balances fewer qualified purchasers with lack of product.
One thing that has remained important through any market condition is the need to accurately price a home.
Why price at 810K when 800K offers the field of vision to buyers at both sides of the price bracket. I always believe it’s the person that can just afford your home that sees the most value. The buyers with a higher budget usually are the most critical, frankly, because they can afford to spend more. The best selling atmosphere is created when the most people are pursuing the property. Instincts from agents and sellers to “pad the list price” for fear of leaving money on the table only hurts their overall exposure, and limits the amount of people that see it.
Real estate is just like any product, the more people who want it, the more it’s worth.
My strategy is always the same – price right, market effectively. The results speak for themselves, with 6 of my first 8 listings this year selling for more than asking price and in fact more than the evaluations indicated.
What does this tell you?
Find an agent that has the instincts, knowledge and experience to move the needle and you will get the price you hope for and perhaps even more.
Sure, the frenzied overpaying may not be there this year, but that doesn’t mean under the right buying atmosphere buyers won’t step up to the plate with good offers.
I love what I do, and studying the numbers and patterns of this market can only help me do it better.
I believe both buyers and sellers can reach their goals this year. I would love to help you do it.
Hudson Smith Real Estate Group
Coldwell Banker Neumann Real Estate Brokerage