How so? Home sellers and home buyers have misaligned expectations.
There’s high demand for homes, but buying power has dropped due to increased interest rates and general economic inflation. Sellers are still interested in selling, but are using a 2021/2022 comparisons when pricing their homes.
So what’s happening? Fewer houses are selling. In fact, there was a 55% year-over-year drop in Toronto home sales between January 2022 compared to January 2023. But there’s still a high demand for housing.
The talent market feels very similar. As a finance recruiter talking to business leaders and candidates every day, I’m seeing a similar scenario daily.
Candidates are the home sellers. And they’re not desperate to sell because:
On the other hand, the businesses are the home buyers with big expectations. Their buying power has gone down, but they’re still trying to buy a 5-bedroom home on a townhouse budget
This isn’t a perfect analogy. There are obviously different conditions affecting the job and housing markets. But the point is that there are thousands of jobs out there for candidates and hiring managers need to have realistic candidate expectations to find top talent.
There are many amazing candidates who still want to make a move, but companies need to have realistic expectations and remember that negotiations are a two-way street.
Truly, a little enthusiasm can go a long way in helping snag a great candidate!
I also want to emphasize that this isn’t all about money either. Candidates are also prioritizing learning and growth opportunities and want flexible, hybrid work options. If you’re not offering any of those things, you’re going to struggle to find good people.
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