“GTA home sales plunge as much as 61 per cent”.
Headlines like the one above might lead you to believe the market has crashed and home values have plummeted. Nothing could be further from the truth.
2017 has seen a very overheated market during the first 5 months. The lack of homes for sale in the Hamilton and the surrounding GTA markets has pushed up prices and created a very competitive marketplace. The competition has led to multiple offers, generating sale prices well above the asking price for homes. This made it very challenging for homeowners and REALTORS® to determine the market value of homes.
As the market has eased in the last few weeks, buyers are finding they are not always in competition to buy a home, and have the luxury of being able to include conditions in their offers whether it be for financing, home inspection, or anything else. The market has also made it possible for REALTORS® to actually negotiate for their buyers and sellers.
The change in the market has also caused REALTORS® to have a closer look at how they are pricing and marketing homes. If you have been trying to buy a home, the one line that you hate to see in a listing is “no offers until…”, as you know you will likely be having to compete to buy the home. While there is still competition in the market, we are no longer seeing the huge numbers of offers, not the selling prices well above the asking price. In fact, we see some sellers who have opted to wait until a set date to view offers not receiving the competition they had hoped for. In some instances, these sellers are relisting their property at a higher price, and removing the time frame for offers.
As the market changes, both buyers and sellers will need to revise their approaches. The buyers are gaining the opportunity to take some time to make sure the home they are buying is the right fit for them, and to satisfy themselves regarding any conditions they need to meet.
On the other hand, the sellers are discovering that they may not obtain the unbelievably high price for their home that the neighbour did just a couple weeks ago. Also, it may take more than a week to list, market and sell their home.
As the market changes, it is important to have a professional REALTOR® in your corner, helping you make the right choice and negotiating the best possible price for you. If you are thinking about buying or selling, be sure to call one of our Coldwell Banker Community Professional representatives. They will be able to help you in making the decisions that are right for you!