By now you’ve likely heard about the house in the Junction that received 32 offers last week and sold for $210,000 over asking.The media is abuzz, Buyers are panicking and REALTORS can’t stop talking about it.
But here’s the thing:
This happens every year in the dead of winter (though usually in February, not in January). Frustrated Buyers who didn’t find their dream home in the fall try to get a leg up on the market at a time when they think other Buyers are hibernating. The problem? All the Buyers have the same idea at the same time. And the Sellers? They’re the ones who are hibernating and won’t even think about selling until March or April. It’s a classic situation of too many Buyers chasing too few houses and it looks a little like this:
Sellers: It goes without saying (but I’ll say it anyhow): if you’re thinking of selling, there is no better time to list your home for sale than at this time of year. REALTORS know that and that’s why they list their own houses in February. The Buyers are circling and your neighbours (your competition) are sipping hot chocolate by the fireplace.
High Demand + Low Supply = Money, Money, Money
Buyers: Pause and don’t worry. Unless you have to move in the next couple of months, grab that cup of hot chocolate and watch from the sidelines. Let the sharks do what they’re going to do and don’t get caught up in the frenzy. More houses will come on the market – they always do.
Oh and that house in the Junction? It was owned by a REALTOR who recognized a market opportunity and the importance of timing.
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