Strategies for success
July delivered more sluggish returns for the real estate sector. Whether you’re looking to purchase your dream home or sell your property for top dollar, navigating this complicated landscape requires savvy strategies
REAL ESTATE CAN be very challenging. Just a couple of years ago, when multiple offers were the norm, for realtors with buyer clients, the battle was to fight through in a rising market and land a successful purchase. Many agents offered on dozens of houses and yet never secured properties for their clients ― an incredibly stressful situation in a rising market. Every week costs went up and frustrated buyers became disillusioned.
For realtors with listings in that rising market, the challenge was to induce multiple offers and squeeze an inflated value out of a house deal for your seller clients. That market demanded careful timing, experience managing the art and science of real estate norms and laws as they related to juggling multiple interested buyer agents each with agendas of their own. Getting a house sold was not the challenge; presenting a house properly, at the right time, with the right marketing and securing multiple offers and then creating “competition” among those buyer agents ― that was the art to securing the last $10,000 out of a transaction.
Real estate is now challenging for a different reason. The market is depressed, buyers are waiting for prices to fall, and sellers are waiting for demand and prices to climb. In this stalemate, we see a very slow market.
So far this year, over 10,000 homes have listed for sale in our market. About 4,500 of them have sold. About 3,000 are currently on the market. That means about 2,500 listings came to market and left the market without selling
In July, 604 houses changed hands in the London and St. Thomas region (Lake Erie to Lake Huron, Dorchester to Strathroy). That represents about a 30 per cent reduction in the number of transactions compared to 10 years ago, when the population was dramatically less. The region’s population has grown dramatically over the last decade, especially in the last seven years. A booming population and a dramatically reduced volume of real estate transactions illustrate a depressed real estate market.
Prices have held rather steady for the last two years, during this low volume period. Sellers have been anxiously waiting for a market rebound (with commensurate pricing rebound) that has yet to materialize. Buyers have been waiting for the dearth of supply to lead to lower prices, which have yet to materialize, mostly due to patient, obstinate sellers.
Falling interest rates and, eventually, mortgage rates are expected, but will likely be accompanied by a slowing economy, wage stagnation and reduced job growth. Thus, the real estate market may be stuck in neutral for some time to come.
What does that mean for buyers and sellers?
For buyers, you have the power of choice, and you can set the terms. Careful financing pre-approval is important. Selling your home before securing another is especially important. In a period of declining mortgage rates, it may be overly optimistic to assume that prices will fall anytime soon. Consequently, take advantage of the boom in inventory and get the house you’ve always wanted. A variable or short-term mortgage will position you to take advantage of falling rates.
For sellers, assuming prices will increase during a declining economic period may be optimistic. There is so much uncertainty ― American politics, looming Canadian elections, climate challenges, institutional deficits at every level, ethnic nationalism, intractable regional wars … I could go on. This growing “concern” creates a lack of confidence that makes it difficult for the public to “invest” in their future, and thus slows our economy ― especially our real estate economy. My message to sellers is accept the market as it is ― no one can predict the future direction of pricing, but there is little reason to believe price gains are inevitable.
So far this year, over 10,000 homes have listed for sale in our market. About 4,500 of them have sold. About 3,000 are currently on the market. That means about 2,500 listings came to market and left the market without selling. Another way to look at this: less than half the houses that have listed this year have sold. As you consider listing your home for sale, you must decide: am I listing to be one of the houses that sells? Hire the right realtor or team of realtors and get professional guidance on listing preparation and pricing strategy. It matters.
Market analysis provided by Marcus Plowright, Sales Representative, A Team London. Marcus can be reached at 519-872-8326 or [email protected].
High- and low-priced real estate listings around town this week
London East
Low
Address: 140 Egerton Street
MLS number: X8467120
List price: $349,000
Days on market: 47
Size: 3 bedroom, 2 bathroom
Listing agent: Bruce Sworik, Broker, Sutton Group – Select Realty, Brokerage
High
Address: 129 John Street
MLS number: X9234740
List price: $5,595,000
Days on market: 5
Size: 9 bedrooms, 19 bathrooms, 5,000+ square feet
Listing agent: Trent Forristal, Salesperson, Sutton Group – Select Realty, Brokerage
London North
Low
Address: 147 Wilson Avenue
MLS number: X8380834
List price: $439,900
Days on market: 97
Size: 3 bedroom, 2 bathroom, 1,410 square feet
Listing agent: Sally Jia, Salesperson, Initia Real estate (Ontario) Ltd.
High
Address: 20735 Denfield Road
MLS number: X8375688
List price: $3,799,999
Days on market: 71
Size: 5 bedrooms, 6 bathrooms, 3,500-5,000 square feet
Listing agent: Shawn Nagy, Sales Representative, Sutton Group – Select Realty, Brokerage
London South & West
Low
Address: 294 Wharncliffe Road South
MLS number: X8425368
List price: $439,900
Days on market: 57
Size: 3 bedroom, 2 bathroom, <700 square feet
Listing agent: Chris Howlett, Broker, PC275 Realty Inc.
High
Address: 9385 Elviage Drive
MLS number: X9231344
List price: $3,899,000
Days on market: 7
Size: 5 bedrooms, 6 bathrooms, 3,500-5,000 square feet
Listing agent: Ashley Winder, Sales Representative, Sutton Group – Select Realty 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.