Whats happening in the Toronto Real Estate Market?
Are you wondering what is going to happen in the fall market? Me too. Normally, the day after labour day marks the beginning of the second market in Toronto real estate. Pre-COVID, our Spring market would be very busy, summer would basically shut the market down and then we’d have another wave of activity from September to November. This year is turning all of our expectations around. The Spring was very quiet, for obvious reasons, and the summer has been red hot in terms of sales activity and rising prices. We’re two days into a fall market and it isn’t showing signs of slowing. There are a ton of new listings and also fierce competition among buyers. So, how should a buyer navigate an overwhelming amount of supply?
Don’t get comfy. The rule of supply and demand indicates that with more listings demand will decrease. So far, we haven’t seen this happen. Demand has massively out-paced supply in Toronto for so long that it will likely take sustained levels of high inventory levels to make a dent in demand. Don’t count on demand dropping any time soon.
Act quickly. Even though there are a lot of listings, don’t think that means you can take your time to book showings. Houses are selling in bidding wars within a few days of being on the market.
Narrow down your search: Normally, we advise being pretty flexible with your criteria because supply has been so low. However, now that we do have more supply, make a plan for where you want to live and the type of house you want. This way you won’t get sidetracked by other listings and you will be able to jump quickly when your dream home comes out on the market.
Don’t expect prices to go down: So far, despite all of COVID’s economic implications, real estate prices in Toronto have only gone up. If we get locked down again, I expect to see an immediate reduction in listings but not in prices. Unless unemployment rates in high-income jobs go up or mortgage rates start to rise again, the prices will continue to rise.
Good luck! Despite the competition, this is a great time to be a buyer because you finally have some choice. Enjoy it.
The Kim Kehoe Team