First, there are a lot of buyers for condos right now. We know that because most of our agents are working with at least five clients who are pre-qualified. But these numbers don’t show up anywhere in the market place.
Secondly, there are a lot of condo listings but not a lot of ‘good’ listings. When they are ‘good’, they sell in days. So what constitutes a ‘good’ listing? As always it is value which translates into the right listing price which stimulates offers.
For buyers today, the right listing price is something less than the selling price for condos last summer. They want a discount and the media has told them, that is what they should expect.
On the other hand, sellers still want to list their properties at the same price as last summer. They don’t see any need to lower their list price and most are not desperate to sell.
We all know that most properties sell for 97-99% of list price. A buyer is usually prepared to offer at 95% of list and go from there. If the list price is perceived to be too high, then the buyer does not even make the first offer.
The spring market for condos will be active but at what prices? Who will blink first? Will buyers hold out to get discounts from last summer’s prices or will they yield and pay the same prices? Will sellers hold firm on their list price or will they reduce them by 3-5% to get the offer process rolling?
It will be interesting to see who wins.