Kingston and Area home sales edge higher, new listings jump in November
Home sales recorded through the MLS® System of the Kingston and Area Real Estate Association posted a small year-over-year increase in November 2015.
Residential property sales numbered 193 units in November, up 2.1 per cent (four sales) from the same month a year earlier. On a year-to-date basis home sales are currently running six per cent ahead of the first 11 months of 2014.
“While home sales came in above year-ago levels in November, it did mark a slowdown from activity in August, September and October,” said Jack Green, President of the Kingston and Area Real Estate Association. “Overall for 2015, the big picture for both sales activity and price growth is that it’s been a decent year for both, although they probably looked a bit stronger than they actually were in comparison to a subdued 2014.”
The average price for homes sold through the Association’s MLS® System in November 2015 was $273,993, down 1.1 per cent from November 2014. The less volatile year-to-date average sale price was $292,977, an increase of 3.7 per cent from the first 11 months of 2014.
There were 537 new residential listings on the Association’s MLS® System in November 2015, jumping 37 per cent from last November and marking a new record for the month.
Active residential listings on the Association’s MLS® System numbered 1,697 units at the end of November, down 8.7 per cent from the end of November 2014.
There were 8.8 months of inventory at the end of November 2015, down from 9.8 months at the end of November 2014 but above the long-run average for this time of the year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
The value of all home sales was $52.9 million in November 2015, an increase of one per cent from a year earlier.
Sales of all types of properties numbered 224 units in November, rising 5.2 per cent on a year-over-year basis. The total value of all property sales increased 4.5 per cent from a year earlier to $61.1 million in November.
Source: Canadian Real Estate Association
The Canadian Real Estate Association tracks rate changes (or not) in the Bank of Canada’s overnight lending rate and summarizes key points on economic growth and inflation here.
Buyers are savvy!
They’ve done their research, they’ve looked (at least online) at all the other homes in your price range. If you’re selling an updated, 1800 sqare foot, 3-bedroom, 2-1/2 bath home with a finished basement and nice yard in a good neighbourhood, and you’re priced $20,000 above all the other similar homes, the buyers are already on to you!
Buyers who can afford to pay your extra $20,000 will be comparing your home to similarly priced homes, which will be larger, more upgraded, or in an even more desirable location – you can’t compete! Best to stack up against similar homes, or they’ll all be sold by the time you decide to drop your price.
The seller (you) becomes the buyer!
Chances are, if you’re selling your home you are also about to buy another! When you find a home you like, you’ll be asking yourself two main questions about the price:
- Can I get a similar home for less money?
- Can I get more for the same price?
If the answer to either of these questions is yes, you will be unlikely to make an offer, no matter how much you love the home.
Most buyers will not make a low-ball offer
A quick internet search will reveal the main reason: they do not want to offend the seller. They would rather keep on looking, or purchase a home that isn’t quite as good a fit, just to avoid offending you.
Probably the second biggest reason they don’t make an offer is they figure you’re out of touch with reality thinking that your home is worth more that comparable homes. In short, they just don’t want to deal with you. Negotiations are very emotionally taxing, and buyers would rather avoid the additional stress of dealing with a difficult seller. You aren’t difficult, but they don’t know that!
Time is of the essence
For the reasons we’ve outlined above, an overpriced home often experiences few showings and no offers…even if it’s only inflated by 2 or 3 percent! If it takes too long to bring down the price, buyers will be wary and reject the property because they think something is wrong with it. One of the most common questions we are asked by buyers: “How long has it been on the market?”
In a worst-case scenario, a seller runs out of time and has to drop the price below market value. They would have been better off to list at market value and saved time, money and a lot of stress.