Do you have whiplash watching the sales prices in the Toronto market this week? Some houses are getting tons of offers and selling for much higher than value, and other homes seem to be selling for more modest prices. This situation is confusing to buyers and sellers.
We are witnessing a market that is starting to balance itself. As in all markets, there is a correlation between supply and demand. There are a lot more listings on the market than there were a few weeks ago, and therefore buyers have more choice. When buyers have more options, each house gets fewer offers, and the house sells for slightly less than everyone expected. Welcome to a balanced market! Enjoy it while it lasts. Here’s how to survive the next few weeks:
For Sellers:
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Don’t panic! You will still sell your house, and you will still sell it for significantly more than you would have last year. If you’re selling it for slightly less than a similar home got last week, don’t stress about that. Real estate is all about the long game, and you’re still on an upward trajectory.
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Set conservative expectations: Of course, we all hope you get the most amount of money for your house. However, you should plan on making less than you expected just so that you have a cushion.
For Buyers:
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Don’t panic! Buyers almost always miss opportunities in a balanced market because they see that prices aren’t going up at such a quick rate and worry that the market is about to crash. It isn’t. The market will pick right back up again when the supply goes down. Now is your chance to buy something.
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Stop lowballing: Just because you might be seeing some sale prices that are slightly lower than you expected, this market is still robust, and you still have competition from other buyers. This is not the time to be expecting a huge deal. Make your offers reasonable based on market value.
The Toronto market always goes up, but there are also always periods of relative softness when supply and demand level out. We’re in a period like that right now. For the sake of the stability of the market, we need these periods. They are normal and not a cause for panic from buyers or sellers. As always, reach out to us if you have any questions.
Stay safe!
Robyn VanderVennen
