The spring market update is a little late this year because, well, it’s mid-June and the market has actually picked up immensely over the past month. Normally, we’d see things winding down, but the late start this year has made for a frenzied finish.
Much was made of course of the staggering numbers in comparison to Spring 2017, but on a month-over-month basis since January, both sales and prices have ticked ever so slightly up signifying an ability for sellers to still take advantage of healthy gains made in the past few years. On the other side, buyers have the ability to take their time, negotiate adequately, and do their due diligence without the pressure of competition.
EXCEPT in the condo market. That is still absolutely mental.
DOUBLE FIGURE INCREASES
Prices have jumped double figures again as the freehold market gap is still too large for families and first-time buyers to close, so it’s lead them to the condo alternative.
They’ve decided this is the path to homeownership in the GTA and lifestyle/convenience living, especially in the downtown core, outweighs the ability to own a backyard.
SUMMER AND FALL OUTLOOK
It looks as though market conditions are going to remain as they are for now. Interest rates continue to slowly creep up into the mid-3 range for 5-year fixed mortgages. Debt levels are still a concern for economists, but unless there’s another policy change (which I don’t foresee at this point) I think people will continue to make moves as their lives progress (having children, changing jobs, downsizing etc).
For buyers, the coming months will likely see a little less inventory as sellers hold off until the Fall market. This does leave opportunities for motivated sellers to capitalize if priced aggressively and marketed/shown well.
Multiples offers still very much do happen even above the $1 million mark despite the majority of the downward pressure on price happening in the luxury market.
For condo buyers/sellers, it looks as though market conditions are going to continue the same. We’ve certainly hit unprecedented levels of prices in that segment, but with a complete lack of supply to meet growing demand, things seem like they will remain the same as people continue the rush to get back into the city.
SPRING MARKET UPDATE RECAP
The media will harp on prices being down from spring 2017 and they certainly are. But that doesn’t help paint the picture moving forward. Buyers have choices, time to do due diligence, and often will have leverage in negotiations. However, for homes that are marketed and shown well and aggressively priced, you will find that they’ll sell very quickly or even in multiples.
So, don’t treat every home the same and think they will sit for weeks and come back to a price you believe it’s worth. Using that approach can still see you priced out of a segment you might be reaching for.
Till next time – happy hunting!