The record-setting pace of the real estate market in Markham last year made it known as a ‘seller’s market’ versus a ‘buyer’s market’.
What is a seller’s market?
When more people are looking for homes than there are homes available, can be considered a seller’s market. One of the big reasons behind the record housing prices we enjoyed last year was the lack of homes on the market.
It’s a simple idea. With just about anything we buy, if supply is low and demand is high, the price for that thing is more likely to go up.
One of the real estate statistics that helps determine if we’re in a seller’s or buyer’s market. Is the “sales to new listings ratio” (SNLR) which is the number of homes sold. Compared to the number of homes that went up for sale in a given time period. A 100% SNLR would mean that every house put on the market during the time period was sold. When the SNLR is above 60%, it is considered a seller’s market. The SNLR for Markham in March 2017 was 71% – definitely a seller’s market.
Are We Now in a Buyer’s Market in Markham?
When the SNLR is below 40%, which means the number of homes sold was only 40%. Of the number of homes that were put on the market. It is considered a buyer’s market. Buyers have many homes to choose from and, because sellers are more motivated to find buyers, prices tend to come down.
The SNLR for Markham in March 2018 was 36.8%, indicating a buyer’s market.
What can Home Sellers Do in a Buyer’s Market?
Compared to last year at this time, home sellers may need to put more effort into marketing their house for sale and make sure the house ‘shows’ well so that it attracts more buyers.
But if there is one thing more important than anything else for sellers in a buyer’s market, it is to price the house properly. Too high a price and you may not get as many offers to buy. Too low a price and you might not get what the house is truly worth.
Here are just a few tips for pricing your home to get the highest value for it in a buyer’s market.
1. Remember that Housing Markets are Very Local
One of the first things that sellers do when trying to determine a price. Is to look at prices of other homes in their community. But knowing what average house prices are in Markham is not enough.
Just like it might rain on one side of the street while the other side stays dry. House prices are very localized. Even similar homes on the same street can sell for significantly different prices.
2. Get a Home Inspection
While this isn’t really a pricing tip, it can come in handy to support the price you’re asking. While buyers are looking for the best price, many prefer a ‘move-in ready’ home and might pay more to get it. Nothing says ‘move-in ready’ more than an inspection report that shows the buyer is unlikely to face any surprise maintenance or repairs after they move in.
3. Hire a Real Estate Agent Who Knows Your Location
Some sellers seek out the help of professionals, like a home appraiser, to help them determine the best price. But, considering the shifts in prices that can happen in a relatively small area, finding an appraiser who knows your particular location really well would be almost impossible. Instead, look for a real estate agent who sells homes in your area. Of all real estate professionals, none know an area better than an agent who works in the area.