Is now the right time to sell? 4 things to know about Okanagan real estate
You’ve watched your neighbours list their homes, heard about properties selling for tens of thousands over asking price and you are ready to test the Okanagan real estate market. You can already picture packing up and moving to a new home that just feels right, but is it the right time to put a for sale sign up on your lawn?
As the temperature of the volcanic sellers’ market cools, the Okanagan real estate market is on the path to normalizing while demand still remains high.
Month-to-month unit sales are on a slow and steady decline. However, May also saw 3,166 listings added to the market for a more than five percent increase over April’s 2,990 listings. While the average number of days to sell climbed to 41 in May from 39 in April, the average home price across the Okanagan maintained its double-digit percentage increase over last year.
So, get your lawn ready for that ‘for sale’ sign because it’s still a great time to list your home. To help you make the most out of your listing in today’s market, here are four things you need to know about the Okanagan real estate market today.
1. Sellers are seeing fewer competing offers.
At the height of this extreme sellers’ market, buyers chose to forgo conditional offers as properties sold for thousands over asking price. While this still occurs with select properties, the overall market shift welcomes the return of customary due diligence. Expect your potential buyers to make conditional offers and bring in home inspectors once again.
2. Holding offers are becoming niche once more.
As demand soared and supply plummeted, many sellers and real estate agents would hold offers for a short time after the property was listed to promote multiple offers and ensure the greatest number of buyers had the opportunity to view the property. However, with the added benefits tilted more toward the seller came the opportunity for a host of additional challenges for everyone involved. As the housing supply rises, the need for holding offers diminishes and now most sellers are once again negotiating with individual buyers.
3. Sellers need to be strategic with pricing.
Before the market started cooling in March, new listings often saw prices set above the last sale in the area. While this was an effective pricing method only a few short months ago, it can now lead to a stalled listing and a poor reception.
While pricing is property specific, favour is shifting towards pricing based on the average sale price of comparable homes in the same area in the past 60-90 days. With this benchmark in mind, price your home above average only if the property has been renovated or thoroughly updated; price it at the average if it’s well-maintained but hasn’t had recent updates. Lastly, properties in need of upgrades and maintenance should consider pricing below the area average.
As this is only a rule of thumb, it’s important to work with your real estate agent to have the best chance of success when selling in today’s Okanagan real estate market.
4. Most Importantly - Renovate or update to increase your property value
In a hot sellers’ market with less competition, you could get away with an outdated kitchen and a bathroom in need of a fresh coat of paint. With more listings on the market, make your home stand out with new lighting fixtures or modern kitchen hardware for example. You don’t need to start a full kitchen renovation, but with a budget of $5,000 or less, you can make your home feel fresh and ready for sale. Completing those minor repairs that you have been putting off will make a big difference towards a final sale.
Ready to list your home on the Okanagan real estate market? Let’s work together to make the most of your sale. Give me a call at 778-215-5671 to learn more