2023 was a wild ride. Part of it was like swooshing down a waterslide at Disney and at other times it was like pushing Jello up a set of stairs. It was also a year that our Region saw some trends develop in Real Estate and like Jello and water parks, some of the trends made perfect sense, and others left us shaking our heads.

Trend #1: Listing homes for $1.

This is a trend that seemed to come from the Toronto area. What an agent would do is to list a home for $1. and then hold offers attempting to create a bidding war, with Buyers bidding the home up to market value. From Oshawa to Clarington, since last year we saw 8 properties with an asking price of one dollar and to date, 2 sold and 6 came off the market without selling. The most extreme example were two semi-detached homes being sold as a package. They were listed for $2,400,000 and then reduced to one dollar, only to be taken off the market without selling. My opinion – a silly way to promote properties.

Trend #2: The return of cell pictures.

This is a trend that seems to happen when the market tightens up and homes become a bit more challenging to sell. When homes are not selling overnight as they have been in the past, some agents choose to not hire a professional photographer and take the pictures on their cell phone. Along with this, some realtors are choosing to not offer virtual tours. Selling homes is like joining a dating app – the better the picture the more “dates” you get. (Or in Real Estate, Buyer showings.) My opinion – this is a disservice to Sellers.

Trend #3: Toronto Buyers touring open houses. (Without an agent)

The statistics on homes selling from an open house have always been in the 1% range. (National Association of Realtors) They are known as a way of exposing the property, a chance for a Buyer to meet a local agent and to allow neighbors into a home. (Surprisingly, neighbors tend to be a good resource for Buyers wanting into a subdivision.) The new trend is for agents in Toronto, Brampton or Mississauga to suggest that the Buyers they are working with tour open houses on their own and if they find one that they are interested in, they will prepare an offer for them. I have had literally dozens of offers on homes I have been selling from agents who never stepped foot inside the home. My opinion – Real Estate is valued on what the property offers for features. If a person does not view the property, it is a challenge to determine value.

Trend #4: Renting rooms in a property.

This trend, which I will say I have never seen before to the scale it is happening currently is when a home is purchased and the Seller decides to rent individual rooms out rather than rent to a single tenant. This trend is becoming so familiar, there is a Facebook page for room rentals in Durham Region. One of the properties listed has 3 rooms for sale. A 15 x 11 ft bedroom with an ensuite at $1,350/mth and a 13 x 11 ft room only with shared bath at $1,150/mth. Managing a rooming house is never easy and I can only assume the reason many of these homes are being rented as individual rooms is to increase the rental income to cover the increased mortgage costs. My opinion – it is sad that we have come to this place.

Trend #5: A return to value pricing.

If we look back at spring 2022, specifically February 2022, the average home in Durham Region sold for 28% over asking price. The average detached home sold in Whitby for that month was listed for $1,114,000 and sold for $1,448,000… a staggering $334,000 over asking price! For the month. If we compare November 2023, the average detached home sold for 1% over asking price. This means based on the average asking price homes sold for $5,000 over asking. My opinion – this is refreshing. This is the way Real Estate has been sold for most of my 38 year career. Where, the buyer either pays asking price or reduces the price marginally settling on a value just below the Sellers price.

Some of the trends are being driven by costs – the adoption of cell pone pictures is one of the costs that some eliminate to save marketing dollars and with agents sending their Buyers on their own to shop for homes, from what I can see is a mix of lack of agent motivation and saving on transportation costs. The best trend is getting away from the trend of listing far below market value to spike a bidding contest.

Buyers and Sellers are best represented when they are working with local, full-time agents who will work alongside them to understand their needs and wants and know how to market the properties and/or understand which neighborhoods are best for the families of their Buyers. We are moving back into a market where the experienced agents will be the ones who best serve their clients to the highest degree.

Many of the productive, experienced agents are loving the direction our market is heading. Back to hands on service and having enough time to work with a client to form a relationship that will last longer than the sold sign.

If you are planning on selling your home or buying a property as we move into the spring of 2024 I can be reached at lindsay@buyselllove.ca or 905-743-5555

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