The after-effects of the fair housing plan…
There’s no doubt that we are in the midst of a shift in the Toronto real estate market. The market has taken a breather and buyers are trying to figure out what the future holds.
The drop in GTA market activity is part of a cooling that began in April when buyers moved to the sidelines while sellers rushed to list their houses to take advantage of the market frenzy.
Since the end of April, the number of showings is down. The days of bidding wars with 10+ offers for a house have disappeared. The overused strategy of setting an arbitrarily low listing price and waiting for the barrage of bids from buyers has begun to backfire. As for the condo market, we can see the changes unfolding. Demand is still strong, but there are fewer buyers and the inventory level is higher. The market is no longer driven by emotion. We’re seeing a more rational approach to buying.
Yes, we’re in the spring market, traditionally the best time to sell a house. This year we’ve seen more houses come to market than usual.
Here’s the bottom line in today’s market:
If you’re a buyer, it’s good news. You may not need to bid as much as you would have a month ago.
If you’re a seller, you need to be realistic and price your house at or close to market value.
Words of Advice – I know that I’ve told you this many times before. But, it warrants repeating. The agent you work with matters! If you’re a buyer, you need an agent that understands the current market realities and can guide you gently to the right decisions. The opportunity to get into a coveted neighbourhood that you couldn’t afford a few months ago, might be a possibility today. If you’re selling, make sure your agent does everything to maximize your chances. A comprehensive strategy that’s tailored to you and your home is essential. Check out my blog on this subject.
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