UNDERSTANDING REAL ESTATE MARKET CHANGES

As we enter the Fall Season, the weather starts to change, we notice cooler days, shorter days, beautiful colourful leaves and we have learned to expect some weather pattern changes as we move through this season. However, when real estate markets change we have less understanding of the patterns. Sometimes a real estate market change may be as a result of an economic change due to interest rates, global economic discussions, or shifting demographics, for example, baby boomers to millennials. Whether buying or selling real estate, the key to success is managing your expectations. For example, recently the days on market for home sales has increased. This change does not mean the “sky is falling”. 

It's simply an indicator of a changing market dynamic where more properties are being offered for sale and therefore buyers have more options to consider. This additional exposure time on the market may also be an indicator that some sellers are projecting values based on a previous market condition, which may or may not be achievable in this current market time. These sellers often have to adjust their value to attract potential buyers and achieve a successful sale. Previous seller experiences such as multiple offers and bidding wars may not be achievable in a more balanced market. The key to a successful outcome for a buyer or a seller is in understanding the dynamics of each situation. 

If you are selling your home, know what the parameters of value judgement for your home, what is the reasonable selling time on market – can the market live up to your expectation? Is this the best time for you to sell? Remember that no one has a crystal ball and market analysis can only be done with the facts. Whether buying or selling, always get the most up to date information on which to make a good decision. With the speed of sharing information these days, everyone has an opinion. however, work with the facts. Do not gamble with one of your most expensive decisions. Call us or email us for the latest statistical information to enable you to make the best decision.