The housing market is dynamic, and home values are continually evolving. Yet many sellers still measure their properties based on what they “could have sold for” last year. The reality is that yesterday’s price doesn’t sell today’s home. With shifting interest rates, shifting buyer demand, and new competition in the market, pricing your home correctly has never been more important.
We have observed that sellers who hold out for last year’s figures can quickly lose momentum.
Properties that remain on the market for long periods often sell for less than if they had been appropriately priced from the beginning. Conversely, sellers who are adjusting their expectations to align with the current market are not only selling their homes but are also confident and in a better position to negotiate the terms of sale.
In this article, we will discuss how holding on to yesterday’s price can hurt your sales and what factors are driving today’s market trends so you can successfully navigate this shifting market with confidence.
How Today’s Market Differs From Last Year’s
In July 2024, the REALTORS® Association of Hamilton-Burlington (RAHB) reported that the benchmark home price dropped to $715,500—down more than eight percent from the previous year. That data tells a significant story: the market has changed.
Why? A few factors are contributing to the current real estate climate:
- Higher interest rates: Mortgage costs are near multi-year highs, reducing buyers’ purchasing power. A family that could buy an $800,000 home last year could be looking for $700,000 today.
- Shifting affordability: Inflation and increased cost of living have caused buyers to be more cautious and prioritize value. They are willing to wait longer to conduct market and home searches before submitting an offer.
- Increased inventory: More listings mean buyers have choices.
Given these factors, what worked one day may not work the next. Sellers must understand that buyers do not simply compare their property against similar sales (adjacent to their home); they must also compete against what is on the market now.
The Hidden Cost of Overpricing Your Home
Many sellers believe there’s no harm in “testing the market” with a higher price, thinking they can always adjust later. In reality, overpricing typically does the opposite of what the intent is on the part of the seller.
Here is what actually occurs when a home is listed late and at a price from yesterday:
- Reduced visibility in search results: Buyers use search features to filter for properties, which means that if a property is overpriced, it may not ever appear at their price point.
- Longer time on market: If a home is listed and there are no offers, agents and buyers look for reasons not to recommend the property. I frequently hear buyers thinking about red flags, asking, “What’s wrong with it?”
- Lower final sale price: Studies show that homes that are appropriately priced up front sell faster and for higher values than homes that are subject to price adjustments
- Stress and frustration: This can take an emotional toll on sellers who constantly have showings and no offers, which upsets their daily living.
Overpricing in today’s market is no joke; it is expensive. Instead of getting yesterday’s price, sellers run the risk of getting less than if they priced reasonably in the first place.
Why the Right Price Gets Homes Sold Faster
The correct listing price acts as a magnet and draws in the attention of qualified buyers. When a price is based on the current market, a sense of urgency is created when buyers see instant value; they understand they are buying a home today (and maybe tomorrow), and there are more showings to come, including possibly multiple offers.
While many sellers know they need a trusted real estate agent to price their home correctly, we go to the next level using comparative market analysis (CMA) to determine pricing. This takes the sellers under consideration:
- Reviewing recently sold properties in your area
- Comparing the active listings the buyers will see beside your property
- Accounting for adjustments based on size, condition, and location
- Reviewing market trends (i.e., days on market, price reductions)
With this data-driven approach, sellers can set a price that is competitive without undercutting their equity. The result? A smoother selling process, less time on the market, and a higher probability of achieving an offer that meets expectations.
How a Reliable REALTORS® Helps You Win in a Shifting Market
In a changing market, guidance from a reliable REALTOR® is more valuable than ever. Pricing strategy involves psychology, timing, and negotiation in addition to numbers. A knowledgeable agent helps sellers in the following ways:
- Objective advice: It’s common for sellers to view their properties as beyond value, yet a REALTOR® presents a rational outlook rooted in statistics.
- Marketing expertise: Apart from pricing decisions, real estate agents understand the value of producing professional photos, staging, and digital marketing for optimal exposure.
- Negotiation power: REALTORS® understand buyer behavior and can handle offers to ensure they achieve the most favorable terms possible.
- Adaptability: When market dynamics change during a listing, a skilled agent will pivot strategy quickly to protect your best interests.
Without this guidance, sellers may set prices too high, resulting in frozen listings, or too low, leaving money on the table. A reliable REALTOR® ensures neither mistake happens.
Smart Strategies to Get Your Home Sold With Confidence
If you’re preparing to sell in today’s market, here are strategies that make the difference between a lingering listing and a successful sale:
- Price for today, not yesterday. Accept that yesterday’s price doesn’t sell today’s home. Set your list price based on current demand, not last year’s headlines.
- Highlight value, not just features. Buyers are cautious with spending. Emphasize energy efficiency, location convenience, and updates that save them money long-term.
- Be market-ready from day one. Homes that launch with strong staging, high-quality photos, and a competitive price attract immediate attention.
- Stay flexible. Be open to feedback and willing to adjust strategy quickly if buyer activity slows.
- Leverage timing. Seasonal patterns matter. Listing in early fall or spring often attracts more serious buyers.
By combining realistic pricing with professional guidance, sellers can secure a faster sale and move forward without leaving equity behind.
Final Thoughts
The Canadian housing market is evolving, and clinging to yesterday’s numbers only creates frustration and lost opportunities. Sellers who understand that yesterday’s price doesn’t sell today’s home are better positioned to make smart decisions that get their property sold quickly and with less stress. A reliable REALTOR® can help you navigate the complexities of pricing, marketing, and negotiation so you can move on to your next chapter with confidence. Whether you’re downsizing, upsizing, or relocating, success comes from aligning with today’s market, not yesterday’s memories.
