I was watching a house that was listed for sale in my neighbourhood. It was on the market for a short period of time, then the price went up. A few weeks later the price came down, but remained higher than it was originally. Then the listing disappeared for a few days and came back on the market at yet another price, before it finally sold. As a buyer, how am I supposed to make sense of this erratic pattern? – PUZZLED

DEAR PUZZLED: This property’s winding path from listing to sale is a reflection of the unstable and somewhat unpredictable market conditions in Waterloo Region. This past month, we had more listing inventory than we’ve seen in a decade. Selling homes with so much competition  can be challenging. 

It sounds like the home you were watching was listed by an agent who kept an eye on the market and changed their approach as necessary. Like a doctor treating an illness, an agent may start with one strategy, but switch to something else if they don’t get the desired results. 

Here in Waterloo Region, our average sale price is currently hovering around the high $700 thousand mark, which is down nearly 30 percent from where it was sitting in the Spring of 2022. 

Back when the market was at its peak, sellers were in the driver’s seat. If a home was prepared for market and priced correctly, selling it quickly was almost a foregone conclusion. In early 2022, agents were able to generate multiple offers within a week and advised their sellers to buy before they sold, or risk being left homeless by the sheer speed of the market. At that point, our local market carried about two week’s worth of inventory and homes were turning over quickly.

In April 2022, the Bank of Canada began a long and aggressive cycle of interest rate hikes to rein in inflation. That pattern continued for the next two years. Consumers finally caught a break last month with the first quarter-point rate decrease. In this cooler market, inventory levels have ballooned to around 3.5 months’ worth of listings, and sellers now have lots of competition. Agents are using every tool in their toolbox to get homes sold.

When it comes to the listing you were watching, the agent was likely doing all they could to sell in a timely fashion. When one approach came up short, they tried something else. The path to success appeared convoluted, but the agent was taking action rather than sitting back and waiting. In this challenging market, hope is not a strategy. 

PRO TIP: Agents that watch and understand the market have multiple strategies at their disposal. They strive for the best outcome, and if the path they are on isn’t getting results, they’ll pivot and try another approach. An agent may shift the marketing price up or down to reach a new segment of the market, and this is typically what’s behind an unusual pricing pattern. #Advice #AskDavid #TheNegotiator

David is a top-selling Broker in Kitchener-Waterloo Region. He works personally with you when selling or buying your home. Call or text today for your free home evaluation! 519-577-1212.