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People often ask if the market is going up or down. Although we saw decreasing sales, the market remains strong through February. Here’s why.
People often ask if the market is going up or down. Although we saw decreasing sales, the market remains strong through February. Here’s why.
While the number of listings decreased in January
and February, prices increased year over year, which is a positive
indicator. A home sold on average for
$325,000 in February 2012 and increased to $353,000 in February 2013.
So we’re currently in a sellers’ market. One thing
we always talk about is supply and demand, which we determine based on a figure
called months of inventory (MOI). The
MOI indicates how long it would take to sell the current inventory if no other
house came on the market. In February,
the MOI for the Durham region decreased to 1.5 months compared to 12 months
earlier of 2.06 months, and anything under three months is a sellers’
market. We’re half of that at 1.5 months! When supply goes down, prices go up. Right now, we’re seeing multiple offers on
properties. As we enter into the spring
market, the number of listings will increase, which is good news for the buyer
because they will have more choices.
So what does this current market have
to offer the seller? To get top dollar
when selling your property, you should take advantage of the low inventory
situation. Now’s the time! When everyone who has been thinking about
selling their home puts their home on the market is not the time to dive in—if
you want to get the most out of your home.
If you wait for all the other For Sale signs to sprout up, you’ll have
lots of homes to compete with. At the
end of the day, you have a better chance at success if you decide to sell now,
instead of waiting until all the Joneses get into the market.
What does this
mean for the buyer? When a home that
you’re interested in hits the market, plan to see it as soon as possible and
make the best possible offer that’s at an appropriate price point for the
seller. Remember,
homes are moving quickly. If you
hesitate, the property could be gone tomorrow because others will be making
offers.
To prepare yourself
as a buyer in this market, think about what you want out of your dream home so
you are ready to decide on a property.
Ask yourself questions such as how close do you want to be to your
job? To shopping? To your place of worship? Would you like to have a garden? Do you need a garage? How close do you want to be to a grocery
store? We can help you ask all the right
questions and land your dream home.
Give me a call so I
can tell you where to be positioned and how to be successful in this
market. Please
contact me at (905) 428-8100 or shawn@shawnlepp.com. We’d be happy to assist you.
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