Why Current Conditions in the Canadian Real Estate Market Could be Good News for Sellers

So, what exactly is a balanced or buyer’s market anyway? A balanced market is when the supply of residential properties meets the level of demand. A buyer’s market is when there is a greater inventory of homes than the number of buyers.

Now, it is crucial to understand how these types of climates work:

  • Buyers will possess more leverage and may be able to negotiate prices.
  • (Much different from years past!) Your home may sit unsold on the market for longer than you anticipated.
  • You might need to lower your expectations from your initial asking price.

With prices expected to ease in 2024 and conditions tilting in favour of buyers, where is the good news for sellers? First, the +0.5-per-cent outlook is a national average, and may be higher or lower depending on where you are located. For example, if you are selling your home in the Edmonton real estate market, the sale price is expected to rise four per cent in 2024. Meanwhile, if you are listing your home for sale in the Windsor housing market, average price is expected to rise seven per cent this year. Second, if you are selling your home, you will also need another place to hang your hat once the transaction is completed. Therefore, if you take the equity and purchase another residence, you will not have to endure the frenzy and panic of a seller’s market. Finally, a balanced market does not mean you will need to give away your home for a 20-per-cent discount. But you might need to employ a few additional measures to attract buyers. Here are several suggestions:

  • Always work with a real estate agent.
  • Be sure that your home is in tip-top shape and have your home inspected before a For Sale sign is erected on your front lawn.
  • Make your front and backyard presentable; enhance your home’s curb appeal.
  • Ensure that you clean your house of clutter.
  • Add a couple of incentives, such as new appliances.

Remember, there is still demand for housing. With the Bank of Canada expected to start decreasing interest rates this year, home buying is likely to pick up again, especially as immigration levels rise. Put simply, the competition in the Canadian real estate market will likely be revived.

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