Last week, our office attended the Leading Real Estate Companies of the World annual conference in Las Vegas, Nevada. The member-driven organization, comprised of leading independent real estate brokerages from across the globe, now boasts offices in over 70 countries. This group represents 150,000 sales associates, 550 companies, and over 1.3 million global transactions. Collectively, LeadingRE members account for more US home sales than any other network, franchise or brokerage brand, outpacing second place by 15%.
This year, the organization celebrated its 60th anniversary. The milestone serves as a testament to the power of what can be achieved when great organizations work together towards a common goal. It’s also worth mentioning that the group credits its longevity and impact on the market to a back-to-basics approach to real estate fundamentals: solid relationships, built around trust and experience, with the broker at the centre of the real estate transaction.
It is easy to become enamored by a shiny new object or some disruptive technology that promises to revolutionize home sales, but LeadingRE’s staying power reminds us that the more things change, the more they stay the same. Harvey Kalles Real Estate is proud to represent the organization in Canada’s largest market.
Locally, TRREB released the sales figures for March this morning, and a couple of things stand out. Firstly, despite sales sitting roughly 25% below the 10-year average, the market continues to tighten. Simply put, sales are accounting for a higher share of new listings, which is keeping inventory low. Low supply means more competition for available property, and that puts upward pressure on housing prices.
Secondly, for the first time in 10 months, the average sales prices exceeded the list price. In fact, almost half of all homes sold in March went for over the asking price. Some may argue that a list price can be set low to generate competition, but I would say that sellers go that route when they are confident in the level of competition. This speaks to the interest and energy around our housing market, despite the lower sales volume.
So, in my opinion, if you’re a seller, now is the time to come to market. I wouldn’t be waiting for better weather, flowers, or curb appeal. Your best time to strike is when inventory is low. We are currently sitting at less than a 1.5-month supply, and average sales prices exceeded list price for first time since May. Add to the mix, the 5-year fixed mortgage rate has been lowered to below 5%, which will add more buyers to the pool.
Just don’t overplay your hand. Activity is not where it was in February 2022…that’s history. If you’ve staged your home, taken good pictures, hired a qualified Realtor, put it on the MLS, and it’s still not selling, then there’s a reason…your price is too high. Buyers have a lot of data at their disposal, they are educated to what’s going on, and they know what comparable homes are going for. So, please remember to price your homes in accordance with the neighbourhood and the current market.
As always, I would encourage anyone reading this to reach out to me at 416.723.2383, or to contact a member of the Harvey Kalles sales team. We will be happy to provide clarity around what’s happening within the current real estate environment. Harvey Kalles Real Estate has been in business since 1957, and we bring a wealth of experience to fluctuating markets.
