By now you have no doubt heard all of the talk about the strong seller’s market we are currently experiencing in the city of Vaughan. Smart homeowners looking to take advantage of the current market conditions have been scrambling to beat other home sellers to market all in an effort to fetch record high prices for their homes.

Understanding the current real estate market conditions is really a matter of understanding the most basic economic theory – The Law of Supply and Demand.

Let’s break down the 3 basic types of Real Estate Markets:

Buyer’s Market

A buyer’s market is characterized by supply outweighing demand. In real estate that means the number of homes available for sale exceeds the demand for homes from buyers.

The result in the market is:

• Buyers have more options to choose from as their is an abundance of supply
• Buyers have the luxury of taking their time and waiting for the very best deals
• Buyers have the advantage when it comes to negotiating power
• Prices trend downwards

Seller’s Market

A seller’s market is characterized by demand outweighing supply. In real estate that means the number of buyers looking for a home exceeds the supply of homes available from sellers.

The result in the market is:

• Buyers have less options to choose from as their is a limited supply
• Buyers must act quickly as the competition for the very best homes is fierce
• Sellers have the advantage when it comes to negotiating power
• Prices trend upwards

Balanced Market

A balanced market is characterized by supply and demand remaining equal. In real estate that means the number of homes available for sale is relatively equal to the number of buyers looking to buy a home at any given time.

The result in the market is:

• Buyers have a reasonable amount of choice due to the healthy supply of homes availabe
• Buyers have a reasonable amount of time to search for a home but must be prepared to act when necessary
• There is no inherent advantage for buyer or seller when it comes to negotiating power
• Prices will stabilize and homes sell for a reasonable amount

Market Transition

Eventually the market will transition from one of the above conditions to another. Given the timing of the current sellers market there is a good chance that the market transition will begin to occur with the arrival of the Spring Market.

Traditionally the Spring is a time when many home owners decide to put their house on the market. This will effectively increase the supply and unless the number of buyers contiues to exceed the incoming supply of homes available for sale we will begin to see a market transition from Seller’s Market to a Balanced Market.

Now’s the Time to Act

If you’re a seller looking to cpitalize on the current seller’s market and get top dollar for your home, now’s the time to act. Take advantage of the current seller’s market before the market transitions to a balanced market with the coming of the Spring.  If you’re curious about what homes are selling for in your neighbourhood why not request your FREE copy of the Vaughan Real Estate Report!

Why Listing Your Vaughan Home Before The Competition Could Put Thousands Of Extra Dollars In Your Pocket!

When it comes to Real Estate, you’ve probably heard the expression that timing is everything. If you’re a homeowner in Vaughan looking to sell, the time has never been better!

There are literally thousands of qualified home buyers out there looking for the perfect home in Vaughan yet the number of homes currently available for sale is the lowest it’s been in years. The fact is we are at the peak of a seller’s market but that could all come to an end as early as this Spring.

So the obvious question is how can you as a seller take advantage of these rare circumstances before it’s too late? The answer is simple… take advantage of the narrow window of opportunity by listing your Vaughan home before the competition.

Why NOT to wait for the spring market to list your Vaughan Home

Reason #1: Less competition

• A Seller’s market is characterized by a limited supply of quality listings in the marketplace. For smart homeowners looking to sell that means there are fewer listings on the market to compete with.

Reason #2: More qualified buyers

• During a Seller’s market buyer demand is high due in part to a lack of quality listings. Smart homeowners looking to sell realize this and prepare their home for sale before the competition in order to capitalize on the thousands of qualified buyers looking for the perfect home.

Reason #3: Shorter amount of time on the market

• When you combine ‘Less Competition’ with the ‘More Qualified Buyers’ that are typically found in a seller’s market the result is that well priced homes sell quicker. That means less time and aggravation for you the home seller.

Reason #4: Thousands of extra dollars in your pocket

• With a limited supply of quality homes available for sale, the Buyers negotiating power is restricted. Those looking for the perfect home have to act fast and pay top dollar to beat out other buyers when the right home finally does come available. That could mean thousands of extra dollars in your pocket!

Buyer’s struggling to find their Dream Home in Vaughan

With mortgage rates near all time lows and existing inventory of resale homes the lowest they’ve been in years, it’s no wonder there is an excess of buyers searching for a home in Vaughan right now. With each passing day their frustration grows and their desire to find the perfect home gets stronger. As a seller you couldn’t possibly ask for a better situation… but there is a catch.

The seller’s market won’t last forever!

With each new listing that comes available in Vaughan, the balance of power slowly shifts from the seller back towards the buyer. That means that the seller’s market could easily come to an end as early as the Spring of 2010 as homeowners in your neighbourhood looking to sell rush to get their home on the market.

If you’re thinking about taking advantage of the current seller’s market in Vaughan and are curious to know what your home and other similar homes in your neighbourhood are selling for there is an easy and fast way to find out!  Get your free copy of the Vaughan Real Estate Report and learn the value of your Vaughan Home in today’s real estate market!

Steven Andrade is part of the Andrade Advantage Real Estate Team and a Real Estate Sales Representative with Royal LePage Maximum in Vaughan.  To speak with Steven about buying or selling a home in Vaughan please call: 416. 324. 2626