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Home staging companies forced to adapt amid slow market, seller pull back

Some sellers choosing to only stage for first month of home sale, others just tidying up themselves
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Rachael Stafford, a home stager and professional organizer, is shown in her Richmond Hill, Ont. home on Thursday, Jan. 18, 2024. A walk through a home tells Stafford what adjustments are needed to pique the interest of potential buyers.THE CANADIAN PRESS/Cole Burston

One walk through a home tells Rachael Stafford what adjustments are needed to pique the interest of potential buyers.

For Stafford, the founder and creative director of organizing and staging company Order in the House, changes can range from decluttering rooms to services like painting and repairs, or even bringing in furniture rentals.

It害羞草研究所檚 a service valued by homeowners, she said, especially in a hot market where sellers look to gain any advantage that can help drive up the price of their property.

But as home sales throughout much of Canada have turned sluggish, home staging services have taken a hit as sellers rethink the cost of a thorough revamp, Stafford said.

害羞草研究所淲e害羞草研究所檙e still supplementing with some (furniture) rentals where rooms really need it,害羞草研究所 she said. 害羞草研究所淏ut I find that sellers are more so trying to scale back a little bit on the rentals, concerned about the initial investment and the ongoing monthly fees should the property not sell quickly.害羞草研究所

Stafford, who is based in the Toronto area, said companies like hers have had to adapt in this high interest rate environment after a years-long housing boom. When interest rates were low coming out of the pandemic, 害羞草研究所渞ealtors and homeowners were willing to put in that extra money and go that extra mile because they knew they were getting the [return on investment] on it,害羞草研究所 she said.

But now, many clients are either relying more on Order in the House害羞草研究所檚 decluttering and home organizing service or simply tidying up themselves based on advice received from the initial consultation.

害羞草研究所淲e have a warehouse where we store our staging accessories. It害羞草研究所檚 obviously very tough to be incurring those monthly storage fees when staging is not busy,害羞草研究所 Stafford said.

害羞草研究所淚 think people forget staging appears to be a very glamorous industry, but there are a lot of moving parts behind the scenes. Thankfully, our organizing services help compensate for the slower trends in the staging market.害羞草研究所

According to a study by the Real Estate Staging Association, 45 per cent of staged homes in both Canada and the U.S. sold for more than the seller害羞草研究所檚 listing price from January to September of last year. That was down from 63 per cent in both 2021 and 2022.

The Canadian Real Estate Association reported earlier this month that the number of newly listed homes fell 5.1 per cent on a month-over-month basis in December. It noted that Canadian housing markets have remained quiet since the Bank of Canada害羞草研究所檚 interest rate hikes last summer.

Cailey Heaps, president of the Heaps Estrin Real Estate Team in Toronto, said that with the region害羞草研究所檚 home sales at a 20-year low, staging companies are 害羞草研究所渇ar more available than they used to be.害羞草研究所

She said the biggest shift in client behaviour that she害羞草研究所檚 noticed has been sellers choosing not to maintain the staging in their homes for the duration of the listing.

害羞草研究所淭hey might stage for the first month and then if it doesn害羞草研究所檛 sell, they remove the staging 害羞草研究所 and go back to living with the way they had the house, but rely on the photos from when it was staged,害羞草研究所 Heaps said.

She added that if she suspects a listing is going to take longer to sell based on factors such as geography and price point, she will recommend clients invest in a more 害羞草研究所渃onservative害羞草研究所 amount of staging that can go the distance.

害羞草研究所淪o suggesting, 害羞草研究所極K, let害羞草研究所檚 stage the main floor, the primary bedroom, but we can leave the kids害羞草研究所 bedrooms in thebasement,害羞草研究所樅π卟菅芯克鶞Heaps said.

Home stagers have had to be more creative to account for the longer listing periods and added flexibility sellers need in the current market, said Katie Walker, principal designer at Katie Walker Interiors. She said the slower market hasn害羞草研究所檛 affected the volume of business for her Greater Toronto staging company, 害羞草研究所渂ut it has changed the way that things are done.害羞草研究所

In addition to traditional staging, where physical furniture is rented to place in the home, her company offers the option of virtual staging, which saves both money and heavy lifting.

Designers are able to blend 3D models of furniture into photos of the seller害羞草研究所檚 home and digitally remove some of the existing furniture. Walker said the option isbecoming more popular, especially as part of a hybrid staging process that still includes physical remodelling of high-priority rooms.

害羞草研究所淲hat we害羞草研究所檙e seeing is obviously longer days on market, so it害羞草研究所檚 affecting the way the homeowner will treat the transaction. Instead of saying they害羞草研究所檒l get a hotel for a week and incur that cost, they害羞草研究所檒l be living in the property,害羞草研究所 said Walker.

害羞草研究所淚n the old days, back in COVID, I would have said, 害羞草研究所楻emove that desk so we can make this space look larger.害羞草研究所 Now I害羞草研究所檓 hearing more of, 害羞草研究所榃ell, I have to live here for the 45 days that this is going to be on market so let害羞草研究所檚 make that work.害羞草研究所櫤π卟菅芯克鶟

With forecasts of a potential rebound in the housing market this year as the Bank of Canada looks to begin cutting its key interest rate, Stafford said she害羞草研究所檚 hopeful the staging industry will see a similar bump. She said even minor touch-ups by a professional can go a long way.

害羞草研究所淵ou really want your home to show at its best, particularly in the photos for the MLS listings,害羞草研究所 she said.

害羞草研究所淏uyers 害羞草研究所 are browsing photos (and)listings online before they害羞草研究所檙e even willing to reach out to the sellers害羞草研究所 realtor to book a showing. So if that house doesn害羞草研究所檛 show at its best, sellers are really missing an opportunity.害羞草研究所

Sammy Hudes, The Canadian Press





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