Well, we are now in the prime Fall real estate market, and while I think I have predicted the overall market pretty good this year including pricing and general direction, it is becoming clear that my forecast for higher sales activity in the Fall is going to miss the mark (at least so far as I write this near the end of September).
September 2024 sales activity has fallen below 2023 levels, and as I commented in my last article, this could mean we may be in for a bit of a rough ride in the local real estate market.
While lower interest rates will help longer term in 2025 and 2026, there are many other variables impacting the market short term. Affordability continues to be an issue, and frankly many buyers are not very confident as the economy heads for a downturn and unemployment rates tick up.
Buyers don’t tend to buy when there is uncertainty. Not to mention there is a large disconnect between what many sellers are still expecting and what buyers are prepared to pay. Many listings are sitting longer and longer on the market unsold.
Either more confidence has to return to the market, or prices have to come down. Or a combination of both. An apt real estate phrase sums things up: “Buyers don’t want to try and catch a falling knife.”
We are now seeing inventory build up again locally, and prices continuing to soften. While many sellers will need to adjust pricing further, I am also starting to see a few opportunities for buyers.
I have to be honest, I have lost a few listings lately. I am pretty straight forward when it comes to pricing in the current market – and that’s a tough conversation with sellers sometimes.
Funny story (well in a weird realtor sort of way), a few months ago I pretty much got thrown out of a house after I gave a valuation. First time that has happened to me. Obviously sensing the seller didn’t like my number at all – I asked – “What price were you thinking?” His response: “It doesn’t matter – you can just leave.”
He eventually listed with another realtor $600,000 above my number. About 3 months or so have now gone by. I just noticed he received an offer – after dropping to $150,000 below the number I gave him. If he had listed at my price about 4 months ago… well, I guess we will never know.
Now, I don’t always call it right. Price amendments are needed from time to time in the current market to get a home sold. But I am not going to give a seller the price they want to hear at the outset just to “win the listing” – where there is absolutely no chance of selling at that price.
I am certainly not trying to “low ball” my valuations for a quick sale. My past track record clearly shows I get the best results possible for my sellers. But my approach is pretty straight forward and frank. Not everyone likes that – I get it.
At the end of the day, I don’t control the market. My job is to provide superior marketing to get as many eyeballs on my listings as possible in order to get offers to the table – and then negotiate the best possible selling price for my sellers. Plain and simple. But not easy in this market.
Lots of aggressive follow up is required with potential buyers. And lots of difficult conversations with sellers. Pricing it right is so very important in this market to successfully get your home sold.
Whether you are thinking of selling later this year or in the Spring of 2025 – or simply have questions, reach out anytime to have an honest, straightforward conversation.
And if you are seriously thinking of selling in a few months, may I suggest we take outside pictures of your home now while it still looks its best and all the leaves are still on the trees (And no snow!). This is a free service I offer in Centre Wellington & area – with no obligation.
We have an interesting few months coming up in the real estate world.
Until next month, take care.
George
