Join Sarah Logue and Lynn Hoffmann, Broker Manager RE/MAX Escarpment Realty Inc. to discuss the current real estate market. Learn how this year’s market compares to 2017. Is 2018 a Buyer’s or Seller’s market? What do the numbers support? Why has the condo market average price increased? Hear advice for sellers in this competitive market. Get the key factors that are critical to your sale.
Sarah here. I’m just enjoying my morning Starbucks at our Brandt Street location where they’re so fortunate to have a Starbucks right across the street.
We’re gonna be chatting a little bit about today’s current market for 2018.
Hi it’s Lynn Hoffman. I’m Broker Manager for Remax Escarpment. I manage two locations Itabashi Way in the northern part of Burlington and also the 502 Brandt Street office which is the luxury office, the first of its kind in Canada.
Lynn, you are the expert, you follow all our numbers, you track everyone of us in detail. Give me an understanding on how our best way to pitch back to our buyers and sellers, what’s different this year VS last year?
Well actually, we are going to be better this year than last year. Surprisingly enough. The Hamilton Real Estate Board stats show that we are down 14.1% but Remax Escarpment is actually up 10% in unit sales for year over year 2017 to 2018, which puts us right now at a minus 3 position. Now we’re still going into November and December and surprisingly enough those are still good sales months. So I’m very confident that we are actually going to beat the 2017 year for unit sales.
Well I find even this November just the last 5 days, I was mentioning to you, we’ve had this great spike because inventory is going down again. So the buyers that are out in play right now are going “Sarah I need a house, what do you have?”, I am going, “We only have this little tiny place.” So they’re jumping on product and we’re even finding some competitive offers. It’s kind of an interesting November to be quite honest.
So you’re saying basically, that yes, we had a crazy year last year and we’re feeling the change and the shift towards some more balanced position, however Remax is still pushing forward and going in a growth cycle.
Yes. That’s what I’m saying.
But I don’t say this about the balanced to buyers to sellers market, it really is dependent on pricepoint or price range your home is in.
So for example, properties that are over 2 million plus, they’re typically always in a buyers market. There is not as many buyers. But a great area for our 635 to a million, that number, inventory for those properties is definitely declining. So we are coming in to more of a sellers market. Now we just need to teach the general public that that’s actually what’s going on. So that they can feel it too.
You’ve covered some of the major factors that have caused this shift, is there anything that you really wanted to point out to people that have made that jump? That have made that change? Well I think it’s always inventory. So as the inventory depletes, we call that the absorption rate.
Supply and Demand kicks in. Again, it’s in the price point, so if you’re looking for a house between 800 and a million and change, which is a very strong pricepoint for our town. You’re definitely going to find the inventory has gone down. Again that’s going to push up the competitiveness of the sales. I definitely believe it is supply and demand. They’re not making anymore land and they’re not building too many more new detached homes, so you’re going to see a little bit more condo growth that’s affordable for the young people that are families, parents, grandparents, are still living in Burlington. So we’re seeing a bit of a growth trend in that area as well.
Yea, the new builds for our condos are outstanding and are absorbing our first time home buyer group and they’re absorbing my downsizing group. And it’s leaving a nice middle level for all of those upsizing families. It’s really nice to see.
I asked a quick question here about, “What advice would you give to those in the marketplace today?”
Well I think some of them are still firmly rooted in the craziness of the beginning of 2017. What I suggest they do is work with a trusted real estate professional, and follow that real estate professional’s advice. And get the house priced right the first time. And by that I mean price it and position it in a spot where the market will accept that pricing, for that property. Too many people say, “Let’s try it for two weeks and see what happens”. Well what happens is, they end up not getting as much money as they would have if they had priced it in the right pricing point for that property, location and area and they would get more and it would sell faster. When they price it wrong it sits and according to our statistics, it takes 12.3 showings to have it sold. So if you overpriced your house, you’re not getting any showings, then you don’t get to the 12.3 to sell your home.
It’s so true and it’s what we preach everyday, right? If we’re priced right we can get your house sold, if you’re priced wrong, you’re gonna sit there and people are going to forget about you and the product has become stale. And you’ll actually make less money.
Absolutely because the timeframe is going to keep pulling your price down and people are going to play that waiting game with you. So my advice is listen to your trust real estate adviser, also any suggestions that they make about staging, because condition is very important. Pricing and condition, absolutely critical.
So my takeaway is continue to price your home correctly, make sure you’re talking to an agent whose solid on their pricing and is bringing you great statistical information to help you understand why that price is good.