I cannot foretell the future of the real estate market ~ nobody can. However, I get asked what will happen with the market and every day my answer is slightly different. The longer I am in this business, the more accurate my prediction becomes.
Obviously, we aren’t experiencing right now what we were seeing a year ago with nearly every listing going into multiple offers. That qualified as an uber-hot Seller’s Market. But, what exactly is this market we are currently experiencing? Is it considered a Buyer’s Market? I don’t know about that.
People, including myself, tend to think in absolutes, especially when it comes to areas of our lives that we are passionate about. Here are a few examples of opposites:
• HOT or COLD
• RIGHT or WRONG
• RIGHT or LEFT
• CONSERVATIVE or LIBERAL (that’s probably all I should say here about politics…haha!!)
• AFFORDABLE or EXPENSIVE
• And <<insert drumroll>> the hottest topic amongst Realtors ~ SELLER’S MARKET or BUYER’S MARKET
With all the topics out there, I believe that there really is a middle ground. I believe that our real estate market is starting to settle towards that middle ground, but I don’t think it’s there quite yet. From what I have been noticing over the past few months, we have cooled off from where we were and the values have dropped, but there are still signs that the homes that are selling tend to be moving more in the favour of the seller than the buyer.
How does a Realtor answer questions about the market that feels a bit uncertain at times? Some segments of the market could be a Buyer’s Market and some could be a Seller’s Market. Just be aware that that the market fluctuates and changes daily, and also be aware that each agent has their own perspective.
As a Realtor, I can’t get so attached to the current market that I don’t look for the signs for what’s around the corner. And I also need to have confidence to give a straight answer for today’s market, even though I know that things could change on a dime and they will for sure change at some point. They never remain the same. The certainty of the uncertainty comes with the territory of the real estate business.
Those who are a bit more shy about making a straight call may say that we are in Balanced Market. Whether or not they know for certain if we even are in a Balanced Market, that just seems like the right thing for them to say right now because it’s definitely starting to balance out.
I truly don’t believe that we are in a Buyer’s Market, and I don’t believe we have balanced out yet either. I am going to go against popular opinion and say that I think we’re still in a Seller’s Market. This may come with some criticism, but I have to go with what my experience has been telling me. I consider everything when giving my opinion, though.
There are definitely properties that appear to be sitting and waiting for offers, but most of the time, there seems to be a valid reason for a delay in selling for less than the average days on market.
You may want to know why in the world I think we’re still in a Seller’s Market, and I am happy to openly share why I believe this is the case.
I knew a year ago that everyone would agree with me if I said we were in a Seller’s Market, but right now, there are some nuances that I cannot ignore, and only time will tell if I am right. These types of listings are still moving;
• Properties that are desirable,
• Homes that show like the Sellers really care,
• Listings that are marketed well and are priced appropriately,
• And, most importantly, many of them are attracting multiple offers. This doesn’t happen in a Buyer’s Market.
For those of us who have lived through some ups and downs and have had some first-hand experience with the highs and lows in the market, we can usually see or feel things coming that the novice may not even notice. However, years of experience, isn’t the only thing that matters. The realtors who are putting forth the greatest effort in our current market, regardless of their level of experience, are still seeing a great turnout in terms of number of showings, number of offers and sale price. Of course, it isn’t like it was a year ago, but it’s certainly not what I would consider Doom and Gloom.
I believe that the interest rate is only ONE part of the equation. There are MANY worldwide factors going on right now that we have never experienced in the past, so only time will tell what happens from here. But, I do believe that things will even out for a month or two at the most, but will start to pop up again in the mid to late spring, and once the Buyers who have been waiting for many months to make a move start to see the number of new listings that will be hitting the market.
