Understanding the Benefits and Challenges of a Sellers Market

As with any type of market, real estate functions as a weighted scale – with buyers on one side and sellers on the other. The buyers side of the scale is comprised of the total number of buyers actively looking to purchase a home, and can vary by location. The seller side of the scale is comprised of the total number of homes listed for sale, both on the MLS as well as privately.

Most people will inevitably have a general idea of the current market conditions, but what is considered when a REALTOR® is defining the current market in your local area?

Historic and recent sales in the area:

• Days on Market – How long were they on the market before they sold.
• List to Sale Ratio – What is the list price versus the final selling price of recent sales.
• Migration – When was the last sale for that same home, meaning how many families are coming and going from a particular area, identifying hot-spots for home sales.
• Price Changes – Are available homes seeing their prices reduced, or holding at their original list price until offers occur.
• Open Houses and Showings – Have homes hosted open houses in the recent weeks, what has the traffic been like?

Inter-provincial Migration and International Immigration:

How many people have recently immigrated into the province is directly correlated to the number of people who would be searching for a place to live. On the same hand, the number of people who have migrated away from the province needs to be considered.

What is it like to sell your home during a sellers market? Here are some things that sellers need to prepare themselves for:

• High-traffic during open houses, and multiple showing appointments
• Homes selling faster than historic averages
• Competitive negotiations with multiple interested buyers
• Higher sale prices due to increased demand
• More pre-approved, serious buyers

In a busy sellers market, there are a lot of quick moving parts, so it can still be a burdensome process to sell your home. It’s important to speak with a REALTOR® who can navigate the journey with you, to ensure you get your best value. Get the conversation started with a home market analysis, giving you an idea of the current value of your home based on these conditions.