Chances are, if you’ve so much as glanced at the news lately, you might be feeling slightly apprehensive about the real estate market. 

And who can blame you? The market seems to be in constant flux, with changes happening every month. If it’s not interest rate hikes, it’s something else. Things seem more complicated than ever for anyone looking to buy or sell a home in Canada. 

However, it’s not all doom and gloom. Even throughout the toughest real estate markets, it is possible to reach your goals and come out on top. How? Keep reading to find out! 

Thinking about selling your home? Find out what your property is worth with a free home evaluation right here.

How the Pandemic Changed Real Estate 

Don’t get us wrong, before the pandemic the real estate market certainly had its ups and downs. However, things advanced at a more predictable pace before 2020. Slow summers and winters bookended by busy fall and spring markets were the norm. 

But then 2020 hit, and our world was turned upside down. The Bank of Canada reducing the overnight interest rate to almost nothing, combined with an entire workforce moving to WFH arrangements led to a massive spike in demand. More than ever, people wanted to buy homes. 

Prices went up, and it caused our housing market and the economy to overheat. 

The recent Bank of Canada interest rate hiking campaign has all been in an effort to cool the economy post-pandemic. 

With such a massive shift in the market, the old rules kind of went out the window. For several years we saw unprecedented trends in the real estate market. 

This brings us to the present day. 

What Does This Mean for Home Sellers? 

Although it would be nice to “time the market” and make home buying or selling decisions at the exact best economic opportunity, that’s now how life works. Timing the market is a myth and despite all the changes happening across the country, buying or selling a home is still a very personal decision. 

No matter what’s going on in the world, there will always be people wanting to buy or sell homes. Life goes on. People get married and have children. Others see their children grow up and move out, the property ladder is intrinsically tied to the lives of individuals. 

So how can you sell a home in a tough market? 

Do you have questions about selling your home? Read these articles next:

• What Everyone Needs to Know About Selling Your First Home
• What Offer Should You Accept?
• What Renovations Really Matter When Selling Your Home

How to Read the Real Estate Market 

So far, we’ve mentioned the ‘challenging’ and ‘unpredictable’ real estate market, but is it really all that unpredictable? 

Although we’ve seen a lot over the past few years, we can still glean plenty of information from market reports and housing trends. However, these trends are more useful for setting expectations rather than picking the perfect time to sell. 

Here are a couple of market stats to consider: 

• Time on market: Statistics like average days on market tell us, on average, how long properties are staying on the market before selling. During the pandemic, it was ‘normal’ to see this in the 10-day range, but in a balanced market, it’s also ‘normal’ to see 20-30 days. The point here is to understand the trend and adjust your expectations accordingly.
• Months of inventory: This stat is a measure showing how long it would take for the current inventory of homes to sell off completely, supposing no new listings come to the market. It might seem like an obscure thing to measure, but it is often used to determine what type of market we are currently in. Three months of inventory or more would be considered a “Buyer’s Market” while anything below would be considered a “Seller’s Market”

It’s also important to note that market reports are typically released one month behind, so what’s going on in the market any particular moment, might be different than what’s reflected in a market report. 

Looking for more advice on the best time to sell your home? Read our blog about it right here.

How Your Agent Can Help You in a Tough Market 

Choosing the right agent to sell your home can make all of the difference in your sale. An experienced, savvy and tenacious agent can help you come out on top no matter what is going on in the market. 

When choosing an agent to sell your home in a tough market, take a look at:

• Preparation: Does the agent have any advice for preparing your home? Do they recommend any repairs or staging? Selling in a difficult market might require more preparation to make the home ready for buyers. 
• Marketing: How does the agent plan to market your home? Do they have a plan to make sure your home gets maximum exposure to the right audience? Learn more about our full-service marketing for sellers right here.
• Negotiation: Will the agent advocate for you and negotiate strongly on your behalf? This is more of an art than a science, and you should feel confident that your agent is ready to negotiate for you.
• Transparency: Communication between the agent and seller is also critical during the selling process. Will the agent keep you updated? Are they honest and forthcoming?

Selling your home is a big decision. Make sure you’re fully prepared with our back-to-basics guide to maximize your home sale. Read more here.

Dos and Don’ts for Selling When the Market Seems Unpredictable

As a home seller, your goals likely have less to do with the stock market and more to do with what is going on in your life. Consider these do’s and don’ts when planning your sale:

Don’t

Take Casual Advice As Gospel: Most of us have at least one acquaintance who thinks they are a real estate expert. Whether they bought a home several years ago or they have a ‘friend’ who works in the business. Be wary of non-professionals offering advice on the current market. 

Do

Disregard the Old Rules: The market is not what it used to be, and as such, using outdated real estate logic or following advice from a casual non-real estate agent acquaintance could actually hurt you in the long run. 

Don’t 

Work with a Friend Who Just Got Their Licence: Obviously, this piece of advice should be handled delicately, but consider this: someone who just got their license in the past couple of years has only really worked in a market where all homes are selling fast and for top dollar. They may have the best intentions, but they do not necessarily have the experience to market, negotiate and sell when the market is more challenging. 

Do

Trust an Experienced Team: Longevity and experience are two key factors to look for in a real estate team when selling your home. The team you choose to work with should have a breadth of knowledge and experience dealing with every situation under the sun. When the market is challenging or unpredictable, you will find value in working with a team who has been through it before.

Do you still have questions about selling your home? Here are some more articles to help: 

• Should You Use the Same Agent to Buy and Sell?
• What’s in Your Listing Agreement?
• FSBO Vs. Real Estate Agent Assisted Sales: Which is Best?

Do you have questions about selling your home? Get in touch with us directly by calling 905-332-9223 or getting in contact with us right here.