Dear David,

Our neighbours sold their house in 2022 and did really well with it. We were thinking about selling ours as well, but put those plans on hold when my spouse ran into some health challenges. Now that he is healthy again, we are back in the moving mindset. We’ve done several updates around our house, though our kitchen is showing its age. Nothing on our street has sold since shortly after the pandemic. I know the market has changed, but do you think there’s still a chance we could sell for close to what our neighbour did in 2022? – WONDERING

DEAR WONDERING: Here in Waterloo Region and across most of Ontario, timing has played a major role in property values over the past few years. In February of 2022, our local average selling price hit an all-time high when it surpassed $1 million. This peak was dramatic and very short-lived. By the end of the year, prices had dropped significantly, and we wrapped up 2022 with an average selling price somewhere in the low $700,000s. The roller coaster ride ended as quickly as it started. 

When comparing your home to your neighbour’s sale in 2022, it’s important to know exactly when their home was sold that year. A sale in the first quarter of 2022 took place in a very different pricing environment than it would have in late fall. In the years since the peak, average sale prices in Waterloo Region have remained relatively steady, aside from expected seasonal fluctuations. This pattern of price stabilization following a steep correction is not unique to us, we’ve seen it happen across Ontario.

Now that you’re back in the selling mindset, the updates you’ve made to your home are valuable, even if the kitchen is feeling tired. Today’s buyers often prioritize location, layout, and mechanical upgrades over cosmetic finishes, especially when it comes to securing well-maintained homes in established neighbourhoods. The selling price you get today won’t match the peak of early 2022, but it is still possible to land a strong position, depending on the features of your home, its condition, and current buyer demand. If inventory in your area is limited, your chances are even better.

PRO TIP: The pricing peak we saw in early 2022 was a brief snapshot in time. Many of today’s sellers may feel like they missed the boat. But the reality is, for those who bought and sold in the same market, things very likely evened out. 

While the market has changed, home values need to be considered in context. Keeping an eye on comparable properties and noting the timing of their sales will help paint a clearer picture of what is realistic. The principles of real estate never change, and a comprehensive plan will position you to achieve the best results no matter what the market is doing. #Advice #AskDavid #TheNegotiator