Average sales prices in February have continued to go up month over month, virtually in the entire GTA (Click to view February market report). The absorption rates are still in the seller’s favour and most properties are selling in multiple offers and over asking price… BUT… average sales prices and absorption rates are a lagging indicator of current market conditions. Being on the “ground” and working daily with buyers and sellers gives me a bit more insight than just looking at previous months’ stats. Currently, there is a slight stagnation in demand while supply is increasing weekly. For sellers, this could shape up to have to make for an interesting time, here is what you need to know if you are selling in the spring of 2022.
While the slight shift in the market is representative of the GTA in general, different areas of the GTA do vary. If you have a question about any specific area, please reach out and I can give you more customized advice. No obligation on your part.
Is there a slight shift in the market?
The low rise segment (semis and detached) is experiencing a slight change at the moment. The shift moved the market from an extreme seller’s market to a strong seller’s market. There is still upward pressure on prices but it’s not as strong as it has been in months past. As an example, two weeks ago we’d see double-digit offers on a property whereas now it’s only 2 or 3. Of course, it could be a blip or a sign of things to come this spring.
The high-rise segment (condo apartments) has seen strong demand with limited supply in most areas of the GTA resulting in record-breaking prices for each new unit that hits the market.
What to do if you are selling in the spring of 2022 | Low-rise
You should still hold off offers
Listing at below market value and having an offer date approximately a week later is still the best method to get you the most money if you are the seller. Showings are down, the amount of offers is down but it’s still a strong enough seller’s market for this strategy to work.
Have a plan B
Have a clear plan on what you will do if you don’t get your desired price on the offer date. Re-listing at market value could be a good option and often times it still gets you a good offer.
Consider accepting a bully offer
What is a bully offer? If showings are slow, and you get a really good offer with no conditions this is the time to consider accepting a bully offer. The risk of waiting for the offer date and not receiving as good an offer has increased in recent weeks.
Stage your home
Despite it still being a strong seller’s market, a great presentation of your property will increase the probability of a quicker sale and a higher sales price. With more options for buyers, it can also make your home stand out and attract more attention. Why home staging is important
Keep a very close eye on the market
With a slight shift in the market, you want to make sure that you keep a close eye and contact with your listing agent. They have access to a lot of data points and real-life experience that can give you all the necessary information to make a good decision.
What to do if you are selling in the spring of 2022 | Condos
Hold off offers
List your condo slightly below market value and hold off offers until next week.
Do not accept bully offers
Never say never, if you get an insane offer you may consider it, but don’t panic. The market is so strong in the seller’s favour right now that the probability of not getting a great price on offer night is slim.
Good preperation and staging still matter
Just because it’s an extreme seller’s market doesn’t mean that you should just list your property the same way you live in it. Declutter, depersonalize and stage your property, if possible.
It’s better to sell without tenants
If you have a tenant that’s on a month-to-month tenancy, try to reach an agreement for them to vacate. Your condo will almost always sell for more and easier if it’s vacant.