So the numbers have increased here and decreased there. But what does it all mean. As I eluded to earlier, are we headed for that crash that the media, and let's be honest many others keep talking about. Again, that one that seems to have cycled around us for more than 20 years
No, we're not.
However, just as I said last month, what we are starting to see percolating to the surface is a continued shift in the market. As you probably know, I'm not a strong believer in the headlines that the media puts out there or anybody predicting the market with any absolute certainty.
Very well respected economists, with all of their wisdom, and I do actually mean that sincerely, have been wrong. They've been especially wrong since the pandemic first started. They predicted prices reducing by 50% plus. Instead prices increased by almost the same numbers in some markets.
The fact is that we have lots of variables to consider in making predictions. Some of those variables are more easily predicted than others. One of the hard ones to predict, emotions. How people are going to feel and when they'll feel that way.
Long term predictions are tough, especially when emotions come into play. We know eventually these emotions will hit, but when and for how long is, well, a crap shoot to speak plainly.
Right now sellers are feeling more confident. With the easing of restrictions and government mandates, the fear and severity surrounding covid has significantly diminished. They're now looking to capitalize on the market that we were having. They're coming out in significant numbers too.
At the same time, buyers are feeling the fatigue. They're tired of being beat up by the price increases, the competition and the loses. Some are now pumping the brakes so to speak.
So this is helping to create these new trends. Trends that are emotionally driven.Trends that are tough to predict over the long term. But trends are trends. How long they'll last for or if they'll create anything that has adverse long term effects....is anyones guess.
But.........here are the facts. The boots on the ground. What I see on a daily, shoot sometimes hourly basis
For sellers and buyers am I seeing anything that should create a big stir or any type of panic.... No. Not at all. Am I seeing a continuation of trends that should have you adjusting your plans......Maybe.
If you've been thinking about selling, the early spring is going to be the time you want to aim for. When is that? Well, it's still now. If you were planning on selling into May or June, I would try and move up your timeframe.
As I eluded to in last months report we're still seeing that buyer fatigue, which will probably get worse as we head into summer. Yay!!!! Summer....just not if you're selling.
Now is the time that you will easily see the profits come from a sound strategy. When buyers have the opportunity to be a bit more picky, being able to play to their emotions is key. Proper preparation and execution of a solid marketing plan will still get you those record profits. But basic staging and updates, only generic advertising on realtor.ca or social media is 100% leaving money on the table at this point. How much?
ALOT!! We're not talking $2000-$5000, we're talking $50,000-$100,000++ that you could be losing.
Buyers are tired, they don't want to be forced into the lacklustre. They want to be wowed. And they'll still pay for it.
So what is this buyer fatigue?
Buyers are still out in large numbers but the number of offers on many properties is still waning. Sometimes we're actually seeing no offers come forward. Especially on those lacklustre properties. As I said, buyers that have been in the market for a little while are really tired from the competition on the shortage of supply and losing offer after offer.
But as they pushback and more inventory comes up, like we see in this current market, we're seeing the average sold price starting to settle. Will we see prices drop much more in the coming months? Possibly. But nothing that would be astronomical overall. Where it will strike is at specific properties and areas. If it does happen on a larger scale though, I still believe it will be later in June, July or most likely into August.
However, getting in and selling now, while for the most part you as a seller are still in control of the offer process, can, if everything is done correctly, still maximize your chances for record profits. So strike, but strike strategically, while the market is still really hot for sellers. There's more money on the table, offers are still producing lots of record setting sold prices, and you can still extend your closing to almost whenever you want..... right now.
For the buyers out there. The shift in the market is still slowly heading towards your favour. Again though, do I think it's going to be a full blown buyers market any time soon? No I don't think so, unfortunately....sorry.
But the market, in its never-ending ebb and flow, which has for months and months really only flowed towards the sellers benefit. Well, it's still trickling towards you. If it were a true tide shift, you'd need a monstrous timelapse camera to see it. But it's still micro-stepping its way all the same..
I would take heart in knowing that, as I figured in last months report, you're now able to compete. Your ablity to get a place without having to pay a record setting price is much greater. If you wait until May to July you may even start to see some deals. Heck, I got a property for a client for a couple weeks ago for $10,000 under the asking price.
These won't necessarily be easy to find but I believe for this brief period it could happen, before more gains hit the market.
Regardless of your status, whether a buyer or a seller, you can't time the market. We've seen and it's been proven time and time again. But, it is always possible to capitalize. If you're interested in seeing how we can help on either end or both. Or if you just have some questions about anything at all I'm always available to chat.