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Hawkair Blog


Northern Real Estate

By Shannon McAllister

Real Estate Agents are asked questions from buyers and sellers time and time again. Sellers ask, “what is the market value for my home” followed by “should I wait until next year to sell my home?” Buyers tend to ask, “is this good value for the home” and “if I wait to buy, will prices be better next year?”

Common questions but without a crystal ball, the value of a home generally depends on 3 things: What is a bank willing to lend for that home, what is a buyer willing to pay and what is a seller willing to sell for. Whether it’s location, size, upgrades, or price, at the end of the day buyers want the best value and sellers want to walk away feeling that they’ve obtained a fair market value. Add in the emotional aspect for both parties and we have a cocktail of variables that can determine the true market value of a home.

The value of a home generally depends on 3 things: What is a bank willing to lend for that home, what is a buyer willing to pay and what is a seller willing to sell for.

Our area saw an increase in house values in fall of 2013 to spring of 2014. The news of LNG projects bringing jobs and opportunities for our region sounded too good to be true but the hope of a bright future was in the minds of us all. Try opening a newspaper or go online without the talk of such projects coming to our area which took our real estate market from the norm to a whirlwind of investors and buyers from all over buying up properties that had been sitting for years.

Fast forward to today, we’ve found this year to be slow out of the gate with buyers having many homes to choose from, forcing smarter pricing from sellers (buyer’s market) and in turn, driving the value of some homes down. Keep in mind though, with the upswing that we saw in 2013/2014, today’s prices are still doing quite well for what the average was for our area. Sales have increased these past couple months showing the move to a normal spring market with agents out with buyers and sellers enjoying the opportunity to show case their homes.

Knowing what the market will bear for this year or even for the next few years really comes down to timing. Trying to guide those looking to buy and sell will come down to how important is the move for their future. Some sellers have the time to wait for the right price and some sell based on personal need. Buyers also take on the challenge of buy now vs. waiting. There is no right or wrong calculation for that decision so each individual bares their own motivation for such a move. With so much looming on the ideas of the projects coming forward, the future for this area is still unknown making the real estate market just as vulnerable. If even one of the projects go forward, I’m sure this region will be seeing an influx of workers, families and businesses to our area.

Keep in mind: People will always be moving around no matter what the market bears or what happens in an area. Timing of when to buy and when to sell is so personal that when the opportunity comes for a move, market value may not always have the last say.

Shannon McAllister is the Owner/Broker of Terrace Real Estate Company Ltd.

This article was originally featured in the Summer 2016 issue of NorthernRoutes.