Did you know there are two real estate markets?
Just because a home is “on” the market doesn’t mean that it is “in” the market. At all times the real estate market is made up of two markets. Okay, you are probably wondering what I’m getting at here… Well, there are those homes that are for sale that are in the market and those that are out of the market.
Those in the market are getting a lot of showings and in many cases multiple offers. Those homes priced out of the market (ie. future year’s pricing) are not receiving showings or the showings are tailing off quickly. The 80/20 r
ule is seen in this case. In a seller’s market (what Toronto Real Estate is in currently) 20% of the homes are out the market, 80% are in. The question becomes which housing market do you want to be in as a seller? It is integral to price your home in the market so as to get the most amount of money and to actually sell your property.
In a buyer’s market you can flip the above scenario (about 4 years ago we had a buyer’s market for 6-8 months). Arguably the “luxury” market in Toronto (more than 1.6 million) is in a buyer’s market. There is a real compression between the prices of 650K and 1.3million (it’s odd to say aloud that the “opportunity” to buy a price a relatively good value is over 1.4 million as this is a lot of money!)
It is essential to know what the market is doing and price accordingly. As a marketing listing agent I pride myself on this knowledge. I would be happy to discuss the benefits of pricing your house for today’s market conditions contact me.