We’re almost halfway through 2014; let’s take a moment to look at how the Valley housing market has been performing this year compared to last. The chart below shows year-to-date sales for 2014 (left) versus 2013 (right) across the Annapolis Valley Real Estate Board (roughly Digby to Windsor); this snapshot was taken on June 1.
We can see that total unit sales are off 19.8% over last year (521 vs 418 sales). But perplexingly, average sale price is up slightly (about 0.8%; $163,719 vs $165,055). In other words, despite the fact there have been fewer sales this year (and presumably, higher inventory), buyers are still willing to pay prices in line with last year’s numbers. What does this mean?
This trend suggests that since buyers have more selection, they are more likely to purchase a home that is move-in ready (i.e., factors such as condition & location of a property will trump the desire to spend less). This is a very important consideration for both buyers and sellers.
Sellers should bear in mind that there is a glut of properties on the market, so competition is stiff. Pricing competitively is critical as this will help attract more buyers into your home; however, once they’re in, the condition and “show-ability” of your home is just as important.
Buyers, on the other hand, should act while conditions are so favourable! First time buyers who sit on the fence may miss their opportunity to find the perfect house at a reasonable price & great interest rates if they choose to wait much longer. Markets are cyclical; keep in mind the old adage, “buy low, sell high!”