On the House: The puzzle of pricing homes
Testing even the most experienced agents, pricing homes in today’s market if part science, part art
THE TORRID PACE of real estate sales and record prices continues. The high demand for housing is reflected in the sale prices being significantly above the list prices.
For this measure, it’s important we look at the aggregate data. It is possible this cycle is perpetuated by agents listing low to gather a lot of interest and then sell above the asking price. The agents are simply responding to a structure that the market has become accustomed to. What do the numbers tell us?
Last month the average home sold for 18 per cent more than the list price. The average sale price was $793,000; the average list price was $672,000, or about $120,000 less.
“Plug your nose and dive in with a sturdy life preserver ― this market is not for the fragile”
A year ago, the average home sold for about 10 per cent more than the list price. Two years ago, the average home sold for two per cent more than the list price. This significant increase in the spread reflects the remarkable price inflation we experienced in the last 60 days. The prices commanded by listings surprised even the most optimistic agents.
The art and science of pricing homes in the next few months will test even the most experienced agents. In this competitive market, the only mistake you can make is pricing too high. Buyers may still assume you’re pricing for multiple offers over the asking price, even though you may be pricing at a number you’d be happy to achieve.
As a buyer surfing Realtor.ca without expert guidance, you may not be searching in the correct price range. This may lead to frustrating delays and missed opportunities. As always, trust a professional for guidance and clarity. Plug your nose and dive in with a sturdy life preserver ― this market is not for the fragile.
Market analysis provided by Marcus Plowright, Sales Representative, A Team London. Marcus can be reached at 519-872-8326 or [email protected].
London East
Low
Address: 706-573 Mornington Avenue
MLS number: 40206251
List price: $218,900
Days on market: 6
Size: 1 bedroom, 1 bathroom, 683 square feet
Listing agent: Scott Vannoord, Sales Representative, Sutton Group-Select Realty Inc., Brokerage
High
Address: 151 Travelled Road
MLS number: 40194275
List price: $2,199,999
Days on market: 57
Size: 11 bedrooms, 5 bathrooms, 6,120 square feet
Listing agent: Geoff Mitchell, Sales Representative, Re/Max Centre City Realty Inc., Brokerage
London North
Low
Address: 50 Charles Street
MLS number: 40204811
List price: $399,900
Days on market: 7
Size: 3 bedroom, 1 bathroom, 920 square feet
Listing agent: Chris Hawken, Salesperson, Sutton Group –Select Realty Inc.
High
Address: 306 Woodholme Court
MLS number: 40207192
List price: $1,800,000
Days on market: 1
Size: 5 bedrooms, 4 bathrooms, 2,276 square feet
Listing agent: Patrick Lexima, Sales Representative, One Percent Realty Ltd., Brokerage
London South & West
Low
Address: 33-136 Conway Drive
MLS number: 40206933
List price: $299,900
Days on market: 2
Size: 1 bedroom, 1 bathroom, 610 square feet
Listing agent: Andrew Redman, Sales Representative, Peak Professionals Realty Inc.
Address: 3862 Southwinds Drive
MLS number: 40193815
List price: $4,277,000
Days on market: 33
Size: 4 bedrooms, 5 bathrooms, 5,210 square feet
Listing agent: Michael Reis, Sales Representative, Prime Real Estate Brokerage
Disclaimer: London Inc. does not guarantee the accuracy of the statistical data on this page. The data does not represent the listings of any one agent or agency but represents the activity of the real estate community in the area. Any real estate agent’s ad appearing is separate from the statistical data provided, which is in no way a part of their advertisement.