It’s incredible how unpredictable the real estate market can be. In a matter of a few months, it seems like everything has changed. Homeowners who listed back in February saw multiple offers, bidding wars and record fast sales as buyers competed fiercely with each other.
A few interest rate hikes by the Bank of Canada seem to have put the kibosh on those conditions.
Homes are sitting on the market now, and buyers have far more options. With all the media attention online and in the news, some homeowners are getting worried. Is the market about to crash?
Though the changing conditions may feel worrisome, there is no cause for panic. What we are seeing is not a crash – far from it. The market is simply undergoing a correction and returning to more normal conditions. We are closer to a balanced market than we have been in a long time. However, sellers are still in an excellent position.
Home Values Have Dropped – But Are Still Sky-High
All you hear about lately is how real estate prices are dropping, even in the GTA. In May, the average selling price of a Toronto home fell for the third month in a row. At first glance, this news can be scary. But let’s take a closer look at the numbers to get a clearer picture.
- In March, the average price of a home reached $1,299,894.
- In April, that number came down to $1,254,436.
Last month, the average selling price decreased to $1,212,806, which is still an impressive amount. It is 9.4% higher than last year and well above pre-pandemic prices.
What exactly is going on in the Toronto real estate market? Here are some valuable updates you might want to know about:
- Will Rising Interest Rates Cool The Seller’s Market?
- Are Bully Offers Still A Thing?
- Semi-Detached Or Detached: Which Has The Better Resale Value?
Sellers Must Work Harder For the Sale
From 2020 to early 2022, sellers had it easy. Low inventory and intense competition meant your house would sell at top dollar, quickly, and with very little effort.
When we say you must work harder to get the sale these days, it simply means you have to do the normal amount of work.
For now, sellers still have a slight edge in the market. However, the increase in available listings means buyers have more options. If you want the best results, you should take no shortcuts when marketing your home and preparing for the sale.
In these current conditions, it’s not unheard of for a listing to sit on the market much longer than anticipated. And some homes don’t sell at all, which is a surprising turnaround from earlier in the year. However, there are pockets in the GTA where buyers are still competing, and homes are still fetching more than the asking price.
What Can You Do To Attract Buyers?
Of course, not everything is within your control. Some locations are more desirable than others and will automatically attract more attention from buyers. But there are many things you can do to improve your chances of a successful sale. Here are some guidelines that will help:
Presentation is everything
The better your home looks, the more buyer interest you will generate. The perceived value of your home increases, resulting in a higher sale price. Preparing your house for sale might feel overwhelming, but taking small steps every day can have a significant impact. In addition, many real estate agents will provide services to handle everything for you.
Cleaning and decluttering. This simple step instantly makes your house seem more spacious and modern. If you do nothing else, scrubbing your house from top to bottom can attract buyers and increase the desirability of your home.
Fresh paint. Every real estate expert will tell you to paint your home before selling it, even if you think your current paint is good enough. Your home will look brighter and more polished and even have a “new home” smell. The investment of a few hundred dollars can add thousands of dollars to your sale.
Minor repairs. Although significant renovations are rarely necessary, every home will benefit from a few minor updates. Consider adding new handles and knobs on kitchen cupboards and doors, new light fixtures, and maybe even a smart thermostat. Always consult a local real estate agent to see what updates add the most value to houses in your area.
What updates will add the most value to your home? These articles will give you some really great ideas:
- Buyers Are Going Crazy For These Home Features
- Should You Renovate Your Kitchen?
- Selling Your Home? Here Are 5 Upgrades To Do First
Staging your home. Contrary to popular belief, you don’t have to spend a fortune on interior designers for a complete overhaul. However, strategic furniture and decor placement can help make your house more appealing to buyers.
A comprehensive marketing strategy. It doesn’t matter how beautiful your home appears if no one knows about it. That’s where an effective online and offline marketing strategy comes in. You want to make sure as many people as possible know about your listing!
The right pricing strategy. Setting the price is the most challenging aspect of selling during a shifting market. Like all sellers, you want to earn as much as possible from your home. However, if your price is too high, buyers will move on to the next option. A local real estate agent can perform a comparable market analysis to determine the optimal price to attract buyers and get you the best value.
Did you know that Sidorova Inwood provides free home evaluations with no obligation? You can book yours right here.
Effective negotiation. Very few homeowners are natural salespeople. However, the ability to negotiate with potential buyers is critical to your success. Unless you have extensive experience and training, it’s best to let a professional real estate agent negotiate on your behalf.
If any of the pieces are missing, you may not get the highest possible value for your home. But when everything is in place, you can look forward to outstanding results.
Are you getting ready to sell your Toronto home? Get more insight into our successful selling process right here.
