How to Succeed in the Current Market

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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.

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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