It’s too soon to draw the conclusion that a shift to a buyer’s market in GTA Real Estate is happening, but it’s certainly evident that buyers do have more choice right now and headed into the summer of 2017.
I outlined the effect the Liberal government’s Ontario Fair Housing Plan had on the market in May 2017 and I wanted to take a portion of that blog and expand on one key point:
What can Buyers and Sellers now expect when in the GTA Real Estate market.
Like I said, it’s too soon to be celebrating. It is not yet a buyer’s market. What we’re seeing so far is much closer to what’s considered a balanced market. Most homes are still selling in a reasonable timeframe (under 30 days) and for amounts that would have been considered record highs only two months ago.
So, the market hasn’t crashed and you won’t be picking up detached homes at 2009 levels. You can, however, expect the following heading into the summer of 2017:
- More Choice – Listings are way up as sellers test the market to see if they can cash in on the appreciation that’s been significantly building since 2009.
- Less Multiple Offers – Many properties are not holding back offers and agents are beginning to understand they need to price homes properly.
- Competition in Best Areas – Not all competition is gone. Well kept, well staged and well priced homes in the best neighbourhoods are going to attract the many buyers still out there in the market including yourself. Don’t expect every home to sell under asking and at your convenience.
- Prices Likely Lower – sales will be up on a YoY basis, but will likely be lower than earlier in the year.
- Sell First, Buy Second – the prevailing wisdom here has changed. You need to sell first.
Buyers, this is the chance you have been waiting for. Get out there, especially this summer, and hunt aggressively for homes. The return of the fall market is an unknown in terms of supply and my long-term bet is against the real estate market coming back to the more affordable levels of just a few years ago. Remember, if you already own, it makes sense to sell first and then purchase after.
I’m going to keep this simple. For now, the ride is over. You need to change your expectations and quickly. And, you need to keep in perspective that home prices are still incredible for you if you’re planning to downsize or entirely move out of the GTA. You’ve done well and you can still happily cash out.
Here’s what you can expect:
- Get it Ready – Your outdated 1974 home will not sell in a day with 10 offers.
- Price Adjustment – You will likely not get a record high price for your home.
- No Offer Dates – Do not try to hold multiple offers. Price it accurately and take all offers seriously.
- Use a Professional – Now, more than ever, this information needs to be repeated. Stage, market and price accurately.
- Sell before Buying – Again, it’s best right now to secure your sale first.
This is not a bad time for sellers. Keep in perspective that prices are still up big time from last year and if you’ve owned a home for even as short a time as 18 months ago, you’ve done fantastically well. Since 2009, most home values have more than doubled. So, your home and investment have done well and now it will take just a bit more work to capitalize on it. Hire a professional, get it ready, sell it and go hunting for the next one. Price-wise, it’s all relative if you’re moving up or down in the market.
We’re not yet in a buyer’s market, but we’re starting to see what a more balanced market looks like again. Remember, that’s good news for the vast majority of people in our communities.
Happy hunting this summer and if you need professional advice, please reach out to me at 647-231-6119 or firstname.lastname@example.org.