Sanity Has Returned to the Real Estate Market
Most would agree that the home sale price increases we saw in the early part of this year were moving at unsustainable rates. Prices going up year-over-year by 20% or even 10% is not maintainable.
The “sanity” is a market that is coming back to reality where we see signs of “market relief” with more listings coming to market and fewer multiple-offer scenarios. There’s still really strong demand but the calm people have been hoping for has arrived and with it we are seeing a levelling off in GTA housing prices.
If the variable rate continues to go up this year, as has been projected, some people will wait and see if prices relax while others will decide to get into the market now and lock something in so they don’t have to worry about their payments in the future. We are currently seeing both scenarios with our buyers.
The condo market will continue to grow at a rapid pace. Condo values took a deep dive after the pandemic hit but are now recovering. The average condo price in the GTA today is around $1 million less than the average sales price for a detached property. Condos selling under $800,000 are seeing a ton of action because that is basically the most affordable option for many entry-level buyers.
One thing to monitor over the coming months will be plans by Ontario political parties heading into a summer election to address the housing inventory challenges for the GTA.
If you're thinking of selling this year, you would be best to get on the market quickly, if possible, so that you can benefit from low competition and surplus of buyers. If you need more time to get ready, perhaps aim for mid-September so that you are well positioned for the fall market. Give us a call if you'd like advice on what things you can do to increase your selling price by at least 5%.