Why is the market paralyzed?

By Shawn Lackie

I get asked that question a lot. While there is no simple explanation (much like life itself) there are a number of contributing factors.

Top of the list would be unreal expectations from sellers. Many believe they should be getting what a neighbour got, just down the street, for the sale of their home, in 2026. Except, the other home sold in 2020, or around that time when the feeding frenzy was at its peak, and actually out of control. So, comparing these two things, is like, walking into the grocery store and telling the clerk you will pay 25 cents for a loaf of bread, like your grandparents did. Sounds pretty goofy, yes? Yet, that is what listing agents are facing these days. Extremely high expectations, based on data which could have been collected 6 years ago. Sorry, but it doesn’t work like that. Today’s market is extremely fluid and changes daily.

Older realtors will remember, back in the day, when the bi-weekly listings used to be issued in catalogue format, with hundreds of listings. It was up to them to disseminate the information and find stuff their buyers might be looking for. Not any more.

Buyers are savvy. They know what places have been selling for and, as such, can decide what they want to pay for a certain place in their desired area.

The sellers, however, are still locked into what Jake, down the street, got for his place 6 years ago. Of course, out comes the old, “My place is nicer than that one.” Ok, that may be, but the market has changed and sadly, you don’t dictate what will happen next.

The reason this story popped into mind was, I just got off the phone with a veteran of many Real Estate wars, Dan Maundrell. I respect Dan for his long term ability to deal with a lot of the foibles this business has to offer. I asked him how things were and he said he had four listing appointments, in the last month, and didn’t close one of them.

Why? They all wanted way too much to sell. One, in particular, stood out. In Oshawa, a modest home, the buyer purchased back in 2010, for under $300,000. So they were sitting pretty, no matter what. Dan came in with an evaluation of $650,000. They pooh poohed that and said, “We NEED $800,000.” For a modest home, in Oshawa, in 2026, how unrealistic is that?

To his credit, Dan said, “No thanks,” and walked away.

So, here comes the problem. Too many agents will agree to the seller’s price because they just HAVE to get the listing. Will it sell for 800? Highly unlikely. Will they waste time, energy and advertising dollars on that property? Without a doubt. So the place sits there for months, with no end in sight. Depending on their needs, some sellers will panic and reduce the price. Many will change agents because we all know it’s strictly the agent’s fault. In addition, some will drop the idea all together.

The one that dropped the price? Ended up selling for around $650,000. So who was right all along? Except, being right doesn’t pay bills, common sense does.

Feel free to check out this story and more on my blog site, at https://slackie14.wixsite.com/buy-sell-and-more.