During a shift in the market homeowners often let their emotions blind them from the facts about the market or the realities of ownership. Keeping those emotions in check will allow for better decision making.
In March of 2017, we saw the market reach its peak in property prices and homeowners were utterly euphoric at the possibility of what someone would pay for their home. The Toronto Real Estate Board reported that the average price of a home was 33.2% higher than the same time last year.
Then in April, the provincial government announced that it would be implementing measures to cool the red-hot market. Over the next few months, a shift occurred in the market and the average price of a home began declining at a steady rate.
Emotions can run rampant during a negative change in the market place. Having a better understanding of each emotion can help guide the seller through the process.
The first emotion that the seller will go through is denial. In a shifting market, price is a sensitive topic. During the months of April, May and June the Toronto Real Estate Board reported that sales dropped 3.2%, 20.3% and 37.3%. The homeowner will resist the urge to lower their asking price down to current market conditions. Living in a “euphoric state” will cause the homeowner to hang onto earlier market prices. Euphoria turns to concern as the future for the seller becomes unclear.
With a lack of control over the current shifting market conditions, the homeowner can begin to feel really frustrated. Ongoing frustration over the market conditions can build and quickly turn to anger. Repeated discussions over the expectation of price and length of time the property could remain on the market could raise the anger level for the seller.
Once the anger has subsided the seller may move onto the stage of resignation. A seller may feel defeated and admit that the market “is what it is” and accept that this is what the market status is. Acceptance of the market conditions allows for the homeowner to enter a more positive nature and understand what lies ahead.
As we move forward in an optimal state we look to achieve our plan. Therein lies the hope that the property will indeed sell. The final emotions of relief and joy are felt when the property is sold.
As the market shifts, your emotions tend to take control. Having an experienced realtor with you will keep your emotions in check and advise you to make those tough decisions. Ensuring that the realtor has been through this market shift before will enable the seller to gather all the necessary facts feel guided through this ever-shifting market.