With piles of leaves covering the streets of Winnipeg and its surrounding areas, it’s easy to tell that fall is finally here to stay. As we move into the final 3 months of 2018, many existing and potential homeowners want to know how the real estate market might fluctuate as the weather starts to cool.
Whether you’re looking to finally make the move into a larger home for your growing family or simply want to downsize into a more manageable space, it’s vital that you know the market conditions of your ideal neighbourhood. Winnipeg is an extremely diverse city, with a variety of neighbourhoods boasting market-ready homes.
Familiarize Yourself with the Hyperlocal Market
While you’re searching for your dream property or attempting to pinpoint the average selling price of homes similar to yours in your area, analyzing hyperlocal data is key. Hyperlocal data focuses on smaller, targeted real estate markets in specific geographical areas, i.e. neighbourhoods.
Overall, the real estate market may seem relatively balanced on a broad scale. However, once you begin to target and research specific areas, you quickly find that each neighbourhood’s real estate market conditions are different. Inevitably, market conditions in these hyperlocal areas change depending on a variety of factors. With the market changing at such a rapid rate, expert help from a dedicated real estate agent can provide you with the information you need to successfully navigate hyperlocal areas.
Overcoming Current Market Challenges
In Winnipeg, our climate has always posed challenges for its inhabitants to embrace and overcome. In the same way we take necessary precautions to protect ourselves from cold temperatures in the final months of the year, it’s vital that we do the same when positioning ourselves to sell our homes during the final months of 2018.
Consider the steps you take to winterize your home for the winter. Pools are closed up, air conditioning systems are turned off, and eventually, snowfall covers your meticulously landscaped yard. When the snow flies, certain systems get hidden, making it vital to include relevant holdback clauses.
According to Richards + Company, a holdback clause is a clause or set of terms added to real estate purchase contracts outlining a known problem, and how it will be addressed within a specific time frame. For example, once a pool is closed for the winter, the seller can include a holdback clause that states the pool will be inspected for any potential damage and respectfully repaired in the spring, with five thousand dollars being held back until the specified date.
These clauses are put in place to protect both buyers and sellers. From a sellers perspective, the clause helps ensure that the necessary work is done within the timeframe provided within the contract. For the buyer, they can rest assured that the problem will be addressed without having to invest any of their own money in the issue.
Protecting yourself from seasonal challenges this year with the help of a Royal LePage Prime real estate agent can help you confidently enter the new year with a new home.
Navigating Hyperlocal Markets in the Final Months of 2018
When it comes to buying and selling real estate in your hyperlocal market, two groups will inevitably face more challenges than others: those trying to buy a house in a hot market, and those attempting to sell a home in a softer market.
Buying a Home in Hot Market Conditions
You may be interested in a specific hyperlocal neighbourhood for a variety of reasons. However, the more reasons you’re keen to move into a certain area, the higher the chance that competition in the market is fierce.
Thriving or “hot” neighbourhoods are measured by their sale to list ratio (the number of listing sold this year to date) and the lowest average days on market (DOM), with some of the hottest Winnipeg neighbourhoods going into the final quarter of 2018 being:
Crescentwood/Rockwood: 85% sale to list ratio and 13 DOM
Riverview: 83% sale to list ratio and 13 DOM
North Kildonan: 83% sale to list ratio and 20 DOM
St. James/Silver Heights: 86% sale to list ratio and 18 DOM
To increase your chances of landing your dream home in a thriving market, make sure you’re considering what a seller is looking for beyond their listing price. Factors like having financing in order, being pre-qualified and pre-approved for a mortgage, and having a substantial deposit all make the selling process easier for the seller.
Selling a Home in Softer Markets
In hyperlocal areas that are in the midst of a stagnant market, you may feel like attempting to sell your home is a risk. However, with the help of an experienced real estate agent, you can adjust your listing in accordance to your competition.
Consider the current market in your area. Where do you lie amongst the competition? The details of your home and listing can mark the differentiator between a successful selling journey and a discouraging one.
The following neighbourhoods can expect a softer market in the final months of 2018:
Amber Trails: 54% sale to list ratio and 24 DOM
Sage Creek: 41% sale to list ratio and 23 DOM
Headingley: 24% sale to list ratio and 24 DOM
Creating incentives for potential buyers can help draw buyers and investors in. Some examples of ideal incentives are cash rebates, providing extra purchase offers, and ensuring that your home shows, smells, and looks inviting both online and in real life.
Partnering with an honest real estate agent can help you figure out where you stand amongst the other available homes in your area and the actionable steps you can take to level-up your chances of selling your home for your listing price.
No matter whether you’re selling or buying a home in this final quarter of 2018, the Royal LePage Prime team is always ready to help you identify the right opportunities for your unique situation. To learn more about buying or selling your home with one of our experienced agents, visit us online today.