How to Price Your Real Estate to Sell in a High Inventory Market

MyAgentMyHome.ca | Posted on Thu, Jul 23rd 2015 17:23
Tags: Saskatoon Real EstateSell a CondoSell a Home

Are you a homeowner in Saskatoon that is looking to sell real estate in a high inventory market?

If so, you probably understand the challenge before you. When there is a lot of inventory in a real estate market, making a home stand out from the rest can be difficult. Much of this rests on your price; therefore, it is important to understand how to competitively price a home to attract all potential prospects; anyone from a first time home buyer to an experienced investor.

How to Price Your Real Estate to Sell in a High Inventory Market

Here, we will discuss how to sell real estate in a competitive environment operating primarily on price as our distinguishing factor. We’ll also talk about the Saskatoon real estate market and explain why conditions are favorable to buyers, thus making it easier for them and more difficult for homeowners.

The State of the Saskatoon Market

Currently, inventory is high in the metro area and is on the rise. In June, there were over 2,000 active units in inventory for the first time. The five-year average, by comparison, was just over 1,500 units. At current sales rates, it would take over five months to liquidate this inventory if no other homes were added to the Saskatoon market.

In certain parts of the market in June, inventory grew substantially by 29.6 percent. In other areas, growth was 12.4 percent. Even at its lowest, inventory grew by double-digit figures, which is a major trend that is impacting the Saskatoon market for homeowners.

How High Inventory Warps the Market

It’s clear that high inventory has a warping effect on the market.

For starters, it puts a homeowner at a disadvantage. This is because there are more homes for sale at the same time in a given area, which means making a home stand out is difficult. It’s a lot easier if there are only a few homes. After all, a home that has no competition is infinitely easier to sell if there is high demand. But with an excess of supply, and a shortage of demand, buyers can be more selective.

This means homeowners have to be careful about how they price a home. If you price it too high, you won’t be competitive and buyers, after seeing a collection of homes, will know it. If you price it too low, you will leave money on the table; your money. Pricing, then, is key.

How to Price Competitively

The best way to price a piece of real estate is to understand the comparative market analysis (CMA) that hopefully has been performed for you by a trusted REALTOR®. This CMA can tell you how much your home is worth compared to other homes of similar size, condition, and type in a given area. This will tell you if you need to be a bit more competitive on price, or if you can afford to stay closer to your original ideal listing price.

Real estate statistics tell you a lot, but they don’t reveal the entire story. Understand the statistics but also understand how your home's features and neighborhood fit and compare within the statistics.

Be careful and don't just look at what other homes are asking, some homeowners will be unrealistic and resistant to a market drop. Also, look carefully at what comparable homes have sold for and in how many days. Have an experienced REALTOR® guide you.

You may also be able to price a home to attract a first time home buyer if your REALTOR® suggests that there are many first time home buyers in your area. These buyers are typically on a tight budget. If you can offer an attractive, value-based price, and are willing to work with them, you can often attract first time home buyers and get offers placed on your home.

As a homeowner, consult with a REALTOR®, no matter if you’re selling to first time home buyers or experienced homeowners. Do your homework and trust a pro to help in a tight market.

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Saskatoon (Areas 1-5)

Oct 2017

Oct 2018

Percent Change

  • New Listings
  • 764.00
  • 627.00
  • -17.93%
  • Days on Market Until Sale
  • 53.00
  • 58.00
  • +9.43%
  • Average Sales Price
  • $334,302
  • $326,812
  • -2.24%

Surrounding Saskatoon (Areas 6-9)

  • New Listings
  • 236.00
  • 121.00
  • -48.73%
  • Days on Market Until Sale
  • 63.00
  • 87.00
  • +38.1%
  • Average Sales Price
  • $337,245
  • $435,378
  • +29.1%

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