The challenge of pricing property in today’s volatile market
By Joseph Marovitch
November 12, 2026
Most people, in their daily lives and work, are not aware of real estate market conditions or how they affect property pricing. When talking with clients who are not experienced in real estate but want to sell, I hear, “I heard my neighbour just sold for X dollars, and I want the same thing.” Most of the time, when I hear this, the client does not know the square footage, number of bedrooms, bathrooms, or other mitigating factors about the house, and often, after checking, I find the house did not even sell. This was the case in the past.
Today the market is much different. On a global scale, there is a shift in the world order. Many countries have become more right-wing and militant due to threats from bad actors such as Russia and others in North America. These issues have led to global conflict in the form of conventional and tariff wars, causing volatility in world economies. These issues, in turn, slow the supply chain of goods and services, increasing inflation and interest rates and ultimately lowering household income. All these issues cause more properties to be listed for sale by sellers who do not want to manage potentially higher carrying costs. Another effect is that buyers may not buy because they are concerned about increased carrying costs and rising prices for everything from donuts to electricity.
… when pricing a property, global issues that cause hesitant buyers and volatile markets must be considered, and a strategy must be applied to the pricing and marketing process.
Therefore, when pricing a property, global issues that create hesitant buyers and volatile markets must be considered, and a strategy must guide the pricing and marketing process. It is not as simple as pricing at a fair value and assuming the property will sell. It comes down to strategy, psychology, and the flexibility to adapt to rapid market changes driven by sudden global issues like the U.S. midterm elections, the escalation of war, and the words of influential bad actors. Words matter and strongly affect the stock market, the real estate market, and the public.
Pricing is determined by several factors, including size, number of bedrooms and bathrooms, parking, location, the property’s condition, how quickly the seller must sell, and comparable active and sold properties from the last 6 to 12 months. The last factor that determines the pricing strategy is current market conditions, which can change everything.
Pricing property consists of the following:
1. Examine all comparable properties sold in the last 6 to 12 months. This shows what a property comparable to the seller’s property sold for. This is the reality factor.
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2. Examine and compare all active comparable property to the seller’s property. This indicates the seller’s competition.
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3. Then, considering current market conditions, apply this to the market analysis and create a scale from the lowest price to the highest-priced property around the seller’s property. Where the seller’s property price falls on the scale depends on the property’s condition, plus or minus a dollar amount based on current market conditions. Eg: The property value in a normal or balanced market is $100. However, if the market is volatile or slow, the seller may want to price lower on the scale to motivate more interest. If the market is hot, the seller will price on the higher end of the scale.
In today’s market, there are two tools to apply before starting the marketing campaign:
A) Price property to motivate buyers, increase interest, visits, offers and thereby increase the selling price.
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B) Know which demographic would be most interested in the property based on the property’s price and location, and the buyer’s current location, family status (married, single or with children), income level and education.
When the seller knows who they are selling to, target that group by placing ads in publications where those buyers are, emailing them, placing ads on social media targeting those locations, calling, and sending letters/flyers to those locations. This saves time and money and means only serious, qualified buyers will inquire and show up at your open houses.
These articles provide a summary. If you have questions, comments, or would like to discuss further, please refer to the comments section at the bottom of the page or contact me directly. As well, to view past articles, click here.
State of the market
According to the most recent RBC Economics Update, unemployment and inflation have risen, and interest rates are expected to rise again in December as the real estate market is expected to soften further.
According to a Financial Post article in the November 12 edition, homeowners are finding they are not getting the price they expected. This is due to more homes coming on the market and buyers not biting because of too many unknown factors, such as how the midterm results will affect tariffs on Canada and how high inflation and interest rates will rise.
If you are going to sell, less can produce more. Price attractively, know who your buyers are, and target that demographic.
If you are going to buy, go in with your eyes wide open. Be aware of the opportunities and risks, and assess whether they are manageable.
If you are going to sell, less can produce more. Price attractively, know who your buyers are, and target that demographic.
Till next week, take care and have a wonderful weekend.
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Joseph Marovitch has worked in the service industry for over 30 years. He was first director of Camp Maromac, a summer camp for children, before becoming a real estate broker, where he applies the same values of reliability and integrity. You can reach him at 514 825-8771 or at josephmarovitch@gmail.com
