As we head into winter and the end of 2018, I always find this time of year helpful to reflect on what’s happening in the local real estate market. Where have we been, and where are we headed? I have a real estate market report to share, but more importantly, I’ve also put together some thoughts I have on what it all means.
Here’s a quick snapshot of what we’ve seen happen from 2017 to 2018:
- For detached homes in Vaughan, there’s been a 7% decrease in average price from 2017 to 2018.
- Average price in 2017 = $1,218,693
- Average trending price in 2018 = $1,133,354
- For condominiums, there’s been a 2.3% increase in average price from 2017 to 2018.
- Average days on the market has increased from 26 days in 2017 to 32 days in 2018.
What do BUYERS need to know about our current market?
It’s currently a bit of a buyer’s market in Vaughan; buyers are feeling like they have more control right now. They can actually negotiate and fulfill financing, bank appraisal, and home inspection conditions. The market was so competitive last year that this type of thing wasn’t happening, which was pretty scary for a lot of buyers, and Realtors! However, buyers are still feeling like many properties are still overpriced and need to be adjusted for our current market.
For a real life example, there are some buyers I’ve been working with recently, and they found a gorgeous one-year-old bungalow in Bradford. This property had been on the market for over 45 days before the sellers even received their first offer. On the other hand, I’m also working with some buyers who are looking for a specific geographic location where they would be moving into a $2M neighbourhood, and price adjustments are happening. At this price point, we’re seeing sellers reducing their asking price at a rate of about 10% each time. With this particular situation, we’re still feeling like the home prices (based on what the homes have to offer) are still a little above market value. I share this to illustrate that even though there are trends, depending on your situation, your experience will vary.
Of course I’m biased here, but I do believe that working with an experienced local agent who “breathes, lives, eats, and sleeps” a particular area are at an advantage. Not all agents are equal, and it’s important to work with someone who really knows the ins and outs of our local market.
What do SELLERS need to know about our current market?
Sellers need to take their listing agent’s advice seriously. If you want to sell your home right now (and any day for that matter) and you want to increase your NET, then be prepared to do some heavy lifting.
My last sellers called movers in before listing their home to declutter, they paid for a stager and followed all of her suggestions, we dotted our i’s and crossed our t’s, and made sure that we covered every angle. There were also many conversations on price before we listed—sellers should keep in mind that it’s challenging to establish market value today, since there haven’t been a ton of sales in recent months to reference. Sellers are wanting to reference back to the big real estate boom here that lasted 6 months, but since the market has adjusted, times aren’t the same. It will take some intimate knowledge of your local market to hone in on just the right price!
Anyway! All of this hard work for my recent sellers paid off—we sold their home in only 12 days. Keep in mind that it’s worth it to put in the extra effort, especially right now.
We are back to being in somewhat of a more balanced market now. What does this all mean?
The market is much more stable now. While sellers can still sell and make a profit, it’s also a great time for buyers who are now able to negotiate prices, terms, and conditions. Buyers, banks, and appraisers can all do their due diligence during the conditional period.
With our market leveling out, I’ve also made another big observation. In recent times I’ve heard from potential sellers that a monkey could sell their house in today’s market, and as a real estate agent, of course this has always bothered me a bit. When homes sell easily, it can cause real estate agents’ services to become undervalued. But for years, I’ve seen sellers lose out on money because they worked with inexperienced agents who didn’t know they could have sold for more if they had been more strategic.
Click the link to view the full Q3 Hallmark Report.
Your home is likely the largest investment of your life—so choose your agent wisely!
I’m excited to see how the year will come to a close!
If you have any questions or are planning for a move in the upcoming spring or summer, I’d love to chat. Let me know how I can help!
Your Friend. Your Neighbour. Your Realtor.