Have You Ever Been Asked "How's Business"?

There isn't a day that goes by that I am not asked, “How’s the Real Estate Market in London, Ontario?”

I am sure if you ask that question to any London Realtor or any salesperson in any industry or small business, the majority will say, ‘Things are good”, “I’m busy,” or “Not too bad.”

Really?

If someone asks me today how the market is today in London, Ontario, I say it depends on what part of the market are you interested in?

If a buyer, the inventory of homes on the market is enormous right now, with some homes on the market for 50-80 days. In that case, those sellers may be open to negotiation. If interest rates drop below the current posted rate of 4.25%, more buyers may enter the market, reducing your negotiating leverage and increasing competition.

If you are a seller, you have three choices, as you always have: price high and hope, price at market and sell, or price below market and sell quickly, sometimes for more.

If an investor is buying, prices are high, and the cap rate is low; however, if the vacancy rate in London remains under 2%, go for it as long as you plan to hold for ten to twenty years! As a seller of an income property, prices are high, inventory is low, and the Landlord and Tenant Act, as the years go on, will lean heavier than it does now on the tenant side.

There is no difference if you are selling widgets, cars, or insurance; everything depends on what side of the market you are on. For salespeople in any business, always reply It depends!

To be blunt, for a salesperson, the market is you, not the buyers, the sellers, the economy, your company, the weather, your cat or your favourite TV show or sports event!