Summer is finally here and it’s time to enjoy the sunshine, patios, and pools.☀️🍹 Kids are off to camp and people are leaving the city for cottage country.
As the exodus unfolds, some homeowners are wondering if it’s a good time to list their house for sale.
I’m sure you’ve noticed the big change in the real estate market since April. Just a couple of months ago, houses were selling overnight with multiple offers. It’s a different story today. For the most part, buyers have more houses from which to choose and don’t need to participate in crazy bidding wars. So how has this changed the numbers?
If you follow the news, the number of new daily listings over the past few weeks is misleading. Consider this typical scenario… a property hits MLS at a lower-than market price, and is expected to sell quickly and secure 15% more-than-asking as it would have prior to April. When the offer date arrives, sellers are comparing 2 or 3 offers, but the right price isn’t there. Yikes! Now what? The sellers choose to start all over again with a brand new listing at a higher price.
This scenario is not unusual and is a major reason why MLS stats don’t reflect the current market activity. With listings being duplicated in this manner, the GTA numbers are artificially inflated. Setting a higher (second) price is a disaster waiting to happen. Today’s market demands that houses be priced at market value for a figure which the seller would be happy to accept anytime.
The above scenario is happening in only a portion of the market. There are still plenty of houses selling for good money, and for more than asking. But the correction is real.
I’m not worried about our market bottoming out. As long as Toronto remains a desirable city and interest rates stay reasonably low, our real estate will be a healthy investment.
The consensus among industry experts is that the current market adjustment will persist for a few months, perhaps into the fall.
Perhaps we can learn from the B.C Foreign Buyer’s Tax. This attempt to cool the Vancouver market worked only temporarily. Yes, it did cool dramatically, but statics are showing that Vancouver is back up and the market is just as active as it was before.
So with summer here, I expect that all of us will take a vacation. As always, I’ll keep you posted on the ups and downs of the GTA market. In the meantime, enjoy the hot lazy days of summer and don’t hesitate to reach out to me anytime.
… in 48 Hours! This sweet and elegant family home in Rosedale didn’t last long. My sellers were a real pleasure to work with and the buyers were very happy. Smiles all around. Learn more about 38 St Andrews Gardens (and others) on my website.
Prefab and modular homes are not new concepts, nor is the idea of living in a shipping container. A Canadian company has managed to turn these steel bins into something modern and beautiful. Read the full article, here.
