It’s no secret that the housing market is in a different place today than it was this time last year. With sales slowing, many sellers are wondering if their homes will sell at all in today’s market. And if it does sell, will you be getting fair value for it? These questions and more are top of mind for many sellers.
Continue reading to learn more about if your house will sell in today’s market!
Let’s begin by reviewing some recent real estate history. Mortgage interest rates reached historic lows during the pandemic, at 2.5% in some areas! This in turn caused buyer demand to significantly rise, while inventory levels fell due to many factors, including but not limited to the pandemic. Houses sold way over the asking price, regardless of the location or condition.
Because of rising inflation, rates have soared today and consumer demand has decreased. The crucial question is: how much has demand increased? The KCM Monthly Showing Index and ShowingTime statistics both indicate that showings are currently fewer than they were at this time last year, with an adjusted total of 158 as opposed to a high of 284 in March 2021. This shows a definite decrease in consumer demand, but how does this measure up to pre-pandemic levels?
Before the pandemic, the showing index in 2019 was 123.3, but the showing index in 2022 is 158, well-above the levels in 2019. Simple math will demonstrate that this isn’t as high as it once was, but consumer demand is clearly still strong! So can a prospective seller expect their home to sell quickly and for top dollar? The answer is a hearty “yes!”—if it is reasonably pricedand properly updated. Homeowners should expect to profit from the sale of their property because markets across the country are currently experiencing high demand. Furthermore, the 16.9% and 19% equity increases experienced by sellers over the previous two years have not changed.
These costs have now been merely added to the price. In other words, do you anticipate many bids exceeding $100k over the asking price as we have in the past? The answer is no. However, can you anticipate continuing to benefit from the market's gains? In a recent poll conducted by Realtor.com, 92% of homeowners who sold their houses in August expressed satisfaction with the results. The solution is, once more, “yes.”
While the selling landscape looks different now than it did a year ago, the takeaway is that we are still in a seller’s market! Buyer demand is still present and robust. If you plan to sell your home soon, seek advice on the local real estate market from a reputable local agent, and set realistic sales goals. When all is said and done, you're likely to be one of the 92% of satisfied customers.
When you’re ready to sell your home, trust it to John Burdi at RE/MAX WEST Realty Inc. I can advise you on what to expect from the selling process and will help you get top dollar for your home. Get in touch today to get started!
BURDI Real Estate204 – 3582 Major Mackenzie DriveVaughan, ON, Canada, OntarioPhone: 416.918.1611