Over the last few weeks, I've been watching the real estate market slow down. Really - it's slowing down. But that's not necessarily a bad thing. You might not have heard about a market slow down in the media, and I agree. Often, I read articles in the media talking about the "hot" market etc, but they are reporting what has happened, and not what is happening.
But don't worry too much about a slowing market. It's simply slowing down to the point of almost no growth, it's not going to decline - for the next year at least. According to the latest Housting Outlook Report from Canada Mortgage & Housing Corporation released on November 4th, resale market activity will hold steady in 2012. The number of sales is expected to decline by 2.2%, and prices will increase just very slightly by 1%. For the full CMHC report, just click here.
It is interesting to note that the market is slowly going to change from the sellers market that we experienced this past spring to a buyer's market by the 2nd half of next year. Right now, we're in a balanced market which means that correctly priced properties are now taking several weeks to sell, and properties that are slightly overpriced are just going to languish on the market. By the 2nd half of next year though, sellers will be competing against each other to get their properties sold. That doesn't necessarily mean a reduction in price, but it does mean that the house they are selling needs to be spotlessly clean, fresh-smelling, recently painted, and staged.
Another reason that sellers will need to ensure the house they are selling is perfect is that next year, only 55% of homes put on the market will actually sell. This is a decline from this year where 60.3% of homes will sell and from last year when 57.2% of homes put on the market actually sold.
So, I've given you a lot of boring numbers brought to you by a boring entity, the government. But these numbers do show that it is always a smart idea to make sure your house shows it's best when selling. The better it shows, the more likely you'll get your property sold.
To find out more about the staging and advertising packages that I offer, give me a call. I'm ready when you are.