Buyers! Now is your time.
Hi! Welcome! We’re in a mythical land called “buyer’s market,” where the homes are plentiful, and buyers are royalty. For the first time since 2008, Toronto is an actual buyer’s market.
This is excellent news for everyone because the market is going through a healthy softening period. We can all agree that prices rising by 25% a year wasn’t sustainable for the long-term growth of the Toronto market.
With that said, many buyers are still hesitant to jump in and start house shopping. The same buyers who wouldn’t bat an eye at offering $500k over list price are now holding off their house search “to see what happens in the market.” If buyers believe that the market will go down more, it is understandable that they would want to sit tight and wait for this market to drop more. However, waiting is a mistake.
This current market is a gift to buyers and will not last indefinitely. Here is our list of reasons why you should buy now and not wait.
- Sellers are caught between two markets: There are still some houses on the market where the owners bought in a seller’s market and are now selling in a buyer’s market. Those sellers are motivated to sell quickly and often sell for below market value. Once that group of sellers is done, probably by the end of the month, the sellers’ desperation will wane in Toronto. We will likely see the number of listings drying up because most owners will delay their house selling plans until the market picks up again.
- Interest rates: They’re going up. This is not news to anyone. The sooner you lock into a rate, the better.
- Prices likely aren’t going down much more: Prices in Toronto have probably plateaued. There have been some houses that sold for significantly below value because those sellers were desperate. Now that we’ve all adjusted to this new reality and interest rate hikes are more predictable, there likely won’t be a further significant reduction in house prices.
- This is temporary: We’ll be in a buyer’s market for several months, likely until at least the end of 2022. However, the market in Toronto will return, especially as COVID recedes and the people who moved out of Toronto start to come back.
- There are so many choices!: For the first time in a long time, buyers can see many houses. Yay! Don’t waste this opportunity because choice in the housing market is a luxury.
➤ Want to learn more about the Toronto real estate market? You might also like:
- The Market Has Changed. Your Selling Strategy Should Too.
- Is the Real Estate Market Crashing? 2022 Edition
- When and How Should You Buy a House in West Toronto
Here’s the most important thing to know about this market. If you need to sell your house to buy a home, you should be selling first. The days of buying first and then selling are over (temporarily!). Sell your house first so that you know how much money you have to buy a home and so that you can sleep at night.
That’s it! Don’t waste the benefit of this buyer’s market. Before you know it, it’ll be over.
As always, stay safe
Robyn Vandervennen
