In this comprehensive analysis, we highlight four key observations that shed light on the current state of the real estate market.
1. The Sales Activity has been Decreasing
In May 2023, there were just over 9,000 sales, whereas September had 4,600 sales. That is a 50 % drop. Now typically, we would see an uptick in sales in the month of September, because that would be the beginning of the fall real estate market. However, we did not see that. The actual numbers for August were higher in sales figures compared to the month of September. This speaks to the headwind the real estate market is facing due to the lack of affordability, which is driven by higher interest rates.
2. Active and New Listing has been Increasing
The number of active and new listings has been increasing faster compared to the number of sales. This leads to higher months of inventory: It will take longer for these properties to sell and eventually as more supply sits on the market, there will be downward pressure on prices moving forward.
3. Affordability Challenge
We have had 53,000 sales up till September 2023. In the greater Toronto area, 82 % of those of sales have been under $1.5 million which again speaks to the lack of affordability due to higher interest rates.
4. Lowest Sales since 2010
Overall, 2023 looks like it has the lowest sales since 2010. Last year we had 75,000 sales. So far in this year, we've had 53,000 and it looks like we will end up around 70-72,000.
In the world of 140 characters, reels and swiping…first impression is critical especially when selling your house. Here are 6 things you can do to wow buyers.
Let’s go through 6 things to wow buyers when selling your house
Paint. Living in a house for years with kids, pets and daily wear & tear, there will be scuff marks, dents and nail holes. A fresh coat of paint makes a world of difference. I have kids and for some reason, there seems to be always a new a surprise on the walls.
Light fixtures. They will modernize and brighten up the space. Have you ever walked into a house, turned on the lights and the house was still dark or had yellowish lights? You don’t get the best feel for that room right? Making a good impression for a potential buyer is the goal here.
Door handles/fixtures. I’m referring to the basic round builder door knobs here. They need to go. Also tighten up loosen door handles. Opening and closing doors or closets should feel sturdy. It gives a solid feel for the house.
House Functions. Walk through the house and review the mechanicals to ensure they do not need major work. For example, if you have a leaky roof, get it fixed, repair any damaged drywall and keep the receipts. Inspect and make sure there are no issues with the furnace, air conditioning unit and electrical outlets. As a seller you don’t want to plant seeds of hesitation in a potential buyer’s mind. If there are ungrounded outlets, the potential buyer might question the electrical wiring of the house and what they might be getting into. That buyer could put a low ball offer since they believe they have to budget for potential surprises and repairs.
House Ambience. Work with your real estate agent and stager to declutter, depersonalize by removing all personal photos & memorabilia. Leave the space for the potential buyers to visualize living and entertaining in the house.
Landscaping. This action items depends on time of year when you’re selling your house. If you’re selling in the spring, summer or fall don’t forget to do a landscaping clean up.
Here are two bonuses for you, well for you to expect from your real estate agent:
Cleaning. Your real estate agent will have the house professionally cleaned. There is no room for error. No second chance if a potential buyer sees a furball. The house needs to be spotless.
Photos. Ok this is a pet peeve of mine. No photos using smartphones, only professional photographers who will present the house at its best. Put yourself in the buyers agent or buyers shoes scrolling through MLS listings online. If the photos don’t show well, they will not consider setting up a showing appointment. You only have a few seconds to make a great online impression for the buyers to setup an appointment to see the house in person. You would be surprised how many times I have seen photos of houses for sale using a smartphone. Please stop.
If you’re looking to get your house ready for sale, download my seller’s guide.
