As the market changes and the media spins it, we are often asked: what’s really happening with the market? It’s amazing what you notice when your real estate antenna is up.
With three generations of experience we know a changing market. In fact nobody knows it better.
In Toronto we are in a strong sellers market, even with the newly released TREB stats, and we have been for a long time. It’s great to live and work in an area where your home can also be a blue chip investment.
According to the Toronto real estate board we have a listing supply of 1.1** months and that is increasing. A balanced market typically has a listing inventory of 5 months. A buyer’s market is when we have a listing inventory of more then 6 months. A balanced market is a good market for both buyers and sellers. In the GTA we have been in a strong seller’s market for quite some time. This is a result of the simple economics of supply and demand.
We are fortunate to live in an area of the province where our investment in real estate returns so well. As the supply of available listings rises it gives buyers the opportunity to take their time and look at a few houses, think about making an offer, look at a few more houses and then decide before choosing one.
So what does it all mean?
Don’t ever react out of fear. For example when purchasing a home – thinking that if you don’t buy this week you will never get into the market can lead you to make a rash decision in your purchase. Do your homework, check out the neighbourhoods you want and the surrounding neighbourhoods, get your financing pre-approved. We can help you with all of this. Go over your wish list, review it and decide which areas are not up for compromise and which are. Do you need 4 car parking or is a finished basement more important?
If you have a house to sell as well then its time to get to know yourself a little better. How much tolerance do you have for risk? Do you want to sell first or buy your next house first?
If you sell first then you will know how much you have to spend on that new home although you risk that you may not find it right away. We always suggest getting out to look at some potential homes. Satisfy yourself that what you want is out there.
On the other hand you may be more concerned about where you will live and the house you will be buying next and you want to find it and buy it before you sell. The risk in buying first is that you may not sell for what you thought you would or in this market you may sell for more and you could bank some extra money.
Either way do some soul searching whether buying or selling.
If you are a seller there is nothing more important when selling your house than working with an experienced realtor who knows the market and can anticipate and confidently negotiate a changing market. A realtor who knows how to find the buyer who can pay the most money and give you the best terms. A realtor with experience in your neighbourhood.
If you are a buyer again there is nothing more important than working with an experienced realtor who can negotiate a deal for you if there is one to be had. A realtor who will find the opportunities and get you front of line for a deal. Someone who knows the market. Remember although there are more houses on the market for buyers to choose from we are still in a very strong sellers market.
Putting it all in Perspective
** Based of TREB (Toronto Real Estate Board) statistics for May 2017