It’s October 14th, 2022. As I get back into the swing of things from a vacation to Ireland, one of the first things I’m researching – considering the changes in interest rates over the past few quarters – has been Listing Strategies – in particular, pricing strategies.
We all remember the Sellers Market of the pandemic, and we know the strategies that were used to list homes has changed since we have moved to a balanced market as of late. The days of listing very low are gone – with some exceptions as described below. But as the data suggests, you can consider most listings an accurate representation of the sale price (as per data from Windsor Essex County Association of Realtors, Board Wide, September and October 2022 Sales – 805 Listings).
But as the data suggests, you can consider most listings an accurate representation of the sale price.
Where it’s Still Speculative
the listing ranges from $0-$200k still hold some weight with respect to listing under. There is still a closing ratio near double digits, and it increases to 56% over listing at the lower level ($100-150$k Listing). Breaking this down, its simple – there are still more people looking at lower prices, from investors to first time buyers, which increase the demand and drive multiple offers. Multiple offers produce over listing offers, which in turn produce higher closing prices. It’s also more difficult to find the exact range a home will go in this area, so it seems Agents are using some broader strokes when listing a home.
Where it Seems to be on Point
Anything from $301-1M seem to be close to accurate listing prices. Some variance of course, but as you look at the chart below its pretty evident – listings are being offered at what the seller is willing to take.
Let that sink in.
On average, as data suggests, what a home is listed for is likely the range it will fall into.
What Does This Mean For Buyers and Sellers
Make sure you have an agent who understands this well. Also, be sure the marketing is on point to cut through the clutter of other homes. Days on market has increased considerably, and be sure you have a home that’s listed appropriately to ensure your sale is effective – if you don’t have one, contact me here. There are big issues with some homes being under listed, and ones over listed sit a long time. An effective understanding of this market is CRUCIAL to you and your family.
Please, adjust your ideologies and search filters! change your search criteria to include the limit of what you’re willing to spend, or you will be missing opportunities. You likely wont be looking at a home listed at $400k if you’re looking to spend $500k. The market has changed to be more favourable to you – take advantage of it. Also, get an Agent who understands this – if you don’t have one, contact me here.