Warren Shouldice

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April Real Estate Update

Sales activity remained well below long term averages in April. In spite of the decreased sales volume and rising inventory, prices have remained stable in both the attached and detached segments of the market. With the recent inventory gains, buyers will have more to choose from entering the busy spring market. The slower pace of sales to begin 2018 shouldn't come as a huge surprise, as the economy has yet to improve enough to offset the impact of recent changes to lending rules and regulations.

 

Elevated supply along with the slow pace of sales continues to weigh on the apartment sector with benchmark prices nearly 3% lower than last year and 14% lower than highs recorded in 2014.


Quick Stats:

 

 

April 2017

April 2018

Y/Y% change

Detached

     

Total sales

1,192

908

-23.83%

Inventory

2,543

3,642

43.22%

Months of supply*

2.13

4.01

88.01%

Average DOM

32

41

28.55%

Benchmark price**

$502,300

$504,500

0.44%

       

Attached

     

Total sales

425

348

-18.12%

Inventory

1,322

1,831

38.50%

Months of supply*

3.11

5.26

69.15%

Average DOM

52

53

2.88%

Benchmark price**

$329,900

$331,800

0.58%

       

Apartment

     

Total sales

283

262

-7.42%

Inventory

1,653

1,851

11.98%

Months of supply*

5.84

7.06

20.95%

Average DOM

49

59

19.58%

Benchmark price**

$264,300

$256,700

-2.88%


*Months of supply: The ratio between inventory and sales which represents the current pace of sales and how long it would take to clear existing inventory.


**Benchmark price: The monthly price of the typical home based on its attributes, providing the best measure of price trends.



3 Reasons Why a House Isn’t Selling


Have you ever driven by a For Sale sign and wondered, “That house has been on the market for a long time, I wonder why it isn’t selling”? You might have asked that question because you were worried the same thing would happen when you put your own house on the market!


Often a home doesn’t sell for one of three reasons:


1. The price is too high.
Sometimes a homeowner will set the listing price exceptionally high in the hopes of getting lucky. What happens instead, however, is potential buyers stay away. In today’s real estate market, a house usually sells at a price that is close to its market value. Fortunately, the current market value of your house - and, hence, its approximate selling price - may be higher than you realize. It’s worth getting a free market assessment.


2. The house doesn’t show well. 
Sometimes a house is strategically priced for the market but doesn’t show well. It’s difficult for buyers to look past issues, such as clutter, and see the potential. In those cases, prospective buyers who view the property, don’t like what they see, and move on. If you put your house on the market, make sure it looks its best for prospective buyers.


3. The listing is poorly promoted.
Clearly, buyers won’t become interested in a property if they don’t know about it. The listing must be promoted effectively, and that involves more than a For Sale sign.



Judgements Buyers Make in the First 30 Seconds


You’ve probably heard the expression, “You don’t get a second chance to make a first impression.” When it comes to selling your home, that is definitely true. In fact, a buyer will come to several conclusions about your property within the first few minutes of seeing it. That’s why it’s so important to make a good first impression.


How do you do that?

One of the best techniques is to pretend you’re a buyer. Drive up to your home. Open the door. Step into the foyer. Take a quick look around. Then ask yourself, “What impressions am I getting from this property so far? What stands out? What impresses me? What concerns me?”

Of course, you want to get a sense that the home is attractive, spacious, and clean. You want to emphasize the enticing features, while minimizing the less desirable qualities. There are many great tricks that can help.

For example, if your foyer is small, eliminate furniture and other items in that area in order to make it look a bit more spacious.

If you have a fantastic kitchen, show it off to the buyer. Make sure the appliances sparkle. Set the table with your best dishware. Make it look like a showcase in a kitchen store. You want the buyer to see it and say, “Wow.”

Buyers make judgements about your home very quickly. In fact, it’s not uncommon for a buyer to make a comment about your property, like - “I love the high ceilings” - within the first few seconds of coming in the door. Don’t underestimate the importance of that first impression.

Of course, serious buyers will scrutinize your property more closely, especially if they have an initial interest. What you want to do is to make sure to peak that initial interest.


Not intended to solicit buyers or sellers currently under contract. 
©IXACT Contact Solutions Inc.





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Data supplied by CREB®’s MLS® System. CREB® is the owner of the copyright in its MLS® System. The Listing data is deemed reliable but is not guaranteed accurate by CREB®.
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