Wednesday 15 May 2013

Spring Market: Don’t Get Burned

Spring Market: Don’t Get Burned


by Darrin DeRoches
May 9 - 15, 2013
Spring has sprung and the real estate market has responded. It is still a seller’s market and the listings are lower than average. It is interesting when you read the statistics since they are somewhat confusing. There is a 6.5 per cent increase in the amount of properties listed over last year and an increase of sales by 5.5 per cent so you would think there is 1 per cent of listing still on the market and that would constitute a buyer’s market. The statistics go on to say that the sales have gone up 5 per cent and the overall price increase is 1.9 per cent higher than last year in April. The most telling statistic from April is that more listing and sales were recorded than last year but the second highest in April for the last 20 years. This statement is the real tell-tale sign of the market and if you are considering selling – this is the time.

    April’s weather sucked this year. It was cold and rainy and this does affect the market more than you would think. The first seven days of May have been glorious and the phones are certainly ringing. May will be much stronger than April and the spring market will be one of the best we have seen in 20 years. The statistics say listings are up from last year but at the same time there are fewer listings on the market which is confusing. The bottom line is that properties are selling and houses are not sitting on the market. The average days on the market are 38 to 40 days which in means houses are moving. 60 days is the norm for houses to sit on the market so 40 days is impressive. So what does all this mean to the buyer and seller?

    Simple – the buyer better move quick and seal the deal because a quality home will be snapped up fast and may go into competitive offers if you wait around. Spring may have sprung in April but May is where you will see the sales and competition happen. So if you are buying, be prepared and work with a broker who is also prepared or you will lose out. Sellers have to also realize the market is moving fast but do not think you can ask for the sky and get it. A properly priced and presented home will get the offers not an overpriced lipstick wearing pig property. Yes it is a sellers’ market but the buyers can see a “lipstick” job a mile away and if you over price you will scare away the buyer. You also run the risk of sitting on the market where people will ask “why has it not sold?” Do not be greedy when selling – even in a sellers’ market because just as fast as spring has sprung the buyers will be buying and if you do not sell it will be a long hot summer market sitting and waiting for a buyer. Strike while the market is hot and try not to get burned. V
   
    Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca.