We’ve seen a lot of change in our city in a very short period of time. The January and February sales data reported that most homes in Airdrie sold for over the asking price. It wasn’t unusual to see homes priced in the $400,000 to $600,000 range selling at 10 per cent over the listing price.
It’s really hard to say, but the one thing I know for sure is that there is no certainty in predicting the housing market. If your memory is short, let me highlight March 2020, when it was forecasted that home values would drop by 20 per cent.
In January or February of this year, the certainty of selling a detached home for over the listing price was nearly a guarantee. What this meant was that it was nearly impossible to under-price a home. When there are 50 prospective buyers for a detached home, they will outbid each other. For this reason, the pricing strategy was typically to value the home closer to the sale price expected in 2021 and sell to the highest bidder. This strategy worked really successfully.
In March, as showings have slowed and multiple offers on homes have slowed – but trust me, have far from stopped – Realtors are employing different listing strategies. Some are still listing at 2021 prices and are hoping for bidding wars. The challenge with this strategy is that if there isn't a bidding war, the outcome might be disappointing for the sellers. They may not even want to sell at the list price (and nothing obligates them to do so).
Of course, in any market, if you price a home too high, it will just sit on the market and go stale. Such is the case even in a market like this, where there are buyers actively looking.
My advice for sellers? Work with a local agent that understands Airdrie and the unique factors of your specific property. Have them discuss their pricing and marketing strategy with you and ensure that you are both on the same page regarding the desired list price.
My advice for buyers? Hire a local agent that knows the Airdrie market. Learn about the neighbourhoods that you wish to be in and consider what is a good investment. Look beyond the pretty and consider the factors that make a home attractive in any market. Location, neighbourhood, access to amenities, and footprint. Understand how to craft an attractive offer that includes not just a great price, but great terms as well.
My last point for buyers and sellers in this market is to get educated. Learn what a reasonable sale price should be. Once you are educated, you can make realistic decisions and ensure success in achieving your aims. You will also feel good about your decision and will act more confidently.
Selling and buying a home can be a very emotional process, but having a strategic plan in place puts you in control of the outcome.
Natalie Berthiaume is a local Airdrie Realtor with more than 12 years of experience servicing the city.
