At the beginning of 2020 no one anticipated that the GTA real estate market would heat up. With businesses shut down and the shift to working from home full time became the norm, consumers began to rethink their living arrangements. Some chose to leave the city to seek a quieter lifestyle. Others wanted to buy a house with more outdoor space. Condo dwellers felt claustrophobic with no amenities to use. A sudden increase in demand with low interest rates and lack of inventory culminated into the hottest time ever in the history of Toronto real estate. Prices appreciated faster than normal, multiple offers were the norm, conditions in an offer to purchase were rare and the days on market were less than 7 days.  Ultimately the demand exceeded supply, thus defined a Seller’s market.

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With supply chain woes and high consumer spending, inflation worries by the Bank of Canada was a hot topic in 2022. The solution to curb inflation and slow down consumer spending was to increase interest rates. We have seen 7 overnight interest rate hikes starting in March 2022. Fast forward to today, the policy rate is now 4.25% compared to 0.25% in January 2022. What has this done to the real estate market? The latter half of 2022 was the beginning of the shift to a more balanced market. We are now seeing the days on market increasing, sale to list price lower, months on inventory slowly creeping up, conditions on offer’s is now the norm and it is becoming rare to see multiple bidder’s on a home. Does this make it a buyer’s market? Some would say it’s definitely leaning that way.

Tips for Buyers in a Seller’s Market

As a buyer in a seller’s market it is important to know how to manage the stress of competing against other offer’s. Here are some tips:

  • Have your mortgage pre-approval
  • Ensure your funds of deposit are available and easily accessible
  • Determine what is important to you and view the home as quickly as possible
  • Be patient (especially if you are loosing on offers)
  • Don’t settle (something that ticks most of your criteria will come up)

Tips for Sellers in a Seller’s Market

  • Clean, organize and prep your home for it to show well
  • Repair and necessary items
  • Stage the home and use professional marketing to attract buyers
  • Determine the right pricing strategy

Tips for Buyers in a Buyer’s Market

  • Communicate regularly with your Realtor
  • Get updates from your mortgage broker
  • Look at the market trends and recent sales (days on market, sale prices)
  • Do your due diligence (pre-approval, home inspection etc…)

Tips for Seller’s in a Buyer’s Market

  • Clean, organize and prep your home for it to show well
  • Repair and necessary items
  • Stage the home and use professional marketing to attract buyers
  • Determine the right pricing strategy (Pricing it right the first time is extremely important)
  • Speak with your Realtor about the recent sales, market trends, buyer feedback

What is happening today? The December 2022 statistics just released. Sales in December 2022 have dropped by almost 50% compared to December 2021.

Regardless of what market you are in, working with a real estate professional will help you navigate through the in’s and out’s of the buying and selling process. If you are a buyer, the best time to buy would be in a buyer’s market. If you are seller, the best time to sell would be in a seller’s market. If you are a seller looking to upsize or downsize then you would be buying and selling in the same market and there will be certain advantages to that. Interview a Realtor to get sound advice and discuss the pro’s and con’s of buying or selling and the best practices and strategies to make.

Not sure where to start? Contact us and we will help guide you with all your real estate needs in any market. Book a consultation with us here or call (416) 319-6893 today