Gambling on market timing is something real estate experts have always warned homebuyers and sellers against. Trying to figure out when the real estate market will peak is almost impossible and often leads to missed opportunities. However, while timing the market isn’t a wise strategy, overlooking the current market trends in Ontario when pricing and listing your home is a big misstep. To sell your house for the best possible price, you must closely look at the market and use those insights to estimate your home value accurately. In this blog, we will guide you through the key real estate market factors you should absolutely focus on to price your home competitively.

Key Things to Look At in the Real Estate Market Before Setting Your Home Price

1. Look at Recent Sales of Similar Homes

The first and foremost market data point to examine is the sale prices of similar homes in your neighbourhood (comps). Sold prices give you the most accurate reflection of what buyers are honestly willing to pay, not just what sellers hope to get. Appraisers, real estate agents, and a house value calculator in Canada rely heavily on sold data to estimate property values.

So, how do you use this data to set your home price?

Start by identifying three to four similar properties to evaluate against your home. Look at how recently these properties sold. Ideally, you want homes sold in the last 30 to 90 days.

Let’s say you find three nearby homes similar to yours, and they all sold between $860,00 and $880,000. That gives you a solid price range to start with. If your home has an upgraded kitchen and a finished basement, while the comparable homes didn’t, you can price yours at the top end of the range, around $880,000. On the flip side, if your home hasn’t been updated in years, while the others had new kitchens and bathrooms, you may need to price yours closer to the lower end of that range.

2. Check Out Similar Active Listings - These Are Your Direct Competitors

Similar active listings are another key market metric that real estate agents, appraisers, and even a home value estimator in Canada consider when pricing a home. These are the homes that buyers will be comparing to yours when they browse online or go for showings. You must know how your home stacks up against these competitors (similar homes for sale) and adjust your strategies accordingly.

For example, if you are putting your Brampton house out for sale at $800,000, you must look at other similar homes in the same price range. If other homes listed around $800K have finished basements while your home doesn’t, you need to make adjustments. You must either make some upgrades or adjust your price to reflect the differences. Remember, buyers will compare your home directly to these similar listings on the market. They will move past your listing if they feel yours offers less value for the same price.

3. Learn from Homes That Didn’t Sell - Expired and Cancelled Listings

Expired or cancelled listings are properties that were listed for sale but didn't attract serious buyers, leaving them unsold for an extended period and ultimately removed from the market. Often, these listings may have been overpriced, poorly marketed, had unattractive listing photos, limited showing availability, or issues with the home’s condition. You can spot patterns by reviewing the expired and cancelled listings and avoid making the same mistakes.

Let’s say you notice that several homes like yours were on the market for $900,000, however, none sold. This is a strong sign that buyers aren't willing to pay that price for a similar home in your area. Pricing yours at the same range could lead to the same disappointing outcome.

4. Know the Current Market Conditions - Is It Favouring Buyers or Sellers?

The same home can sell for drastically different prices depending on market conditions at the time of sale. This is why it is crucial to understand whether you are selling in a market that favours buyers, sellers, or is fairly balanced.

In a seller’s market, homes sell quickly, often with multiple offers, and sellers have the upper hand. You can afford to price your home slightly higher within reason in this market and still expect strong interest.

In a buyer’s market, homes take longer to sell, and home buyers have more negotiating power. Pricing your home competitively is crucial in a buyer’s market, or else your home can sit on the market for months with no serious offers.

In a balanced market, supply and demand are roughly equal. Homes usually sell for their fair market value when the market is balanced, and buyers and sellers must both bend a little.

So, How Can You Figure Out the Current State of the Housing Market?

Calculating the absorption rate is the most reliable way to know the housing market’s current state. You can find the absorption rate by taking the monthly home sales and dividing them by the total active listings.

Absorption Rate = (Homes Sold in 30 Days/Homes Currently Listed) X 100

It is a seller’s market if the absorption rate is above 20% and a buyer's market if the absorption rate is below 15%. An absorption rate between 15% and 20% indicates a balanced market.

According to the GTA Market Trends, 4,910 homes were sold across the region in April 2025, while the total number of active listings reached 54,944. Thus, the GTA housing market’s absorption rate was 8.95% in April, indicating that the market was clearly on the buyer's side.

In such a buyer’s market, you must price your home competitively from day one based on recent comparable sales and current listings data. You also must be flexible, realistic, and strategic in your overall selling approach.

Your Home's Listing Price Matters More Than You Think

An unreasonably high listing price might scare off buyers, leading your house to sit on the market for weeks with no offers. On the other hand, a low price might help you catch buyers' attention quickly, but you could lose out on potential profit. Because of this, setting an accurate and competitive listing price from day one is a must if you want a smooth and successful sale.

To ensure you set the home listing price just right, analyse the key market trends we discussed above and use a reliable house value calculator to get an instant estimate of your property’s worth. Most importantly, lean on the knowledge and expertise of your listing agent when pricing your home. They know your local market inside and out and can help you set a listing price that attracts buyers while maximising your return.