Trying to time the real estate market is usually something you want to avoid. The GTA can be especially difficult to predict with so many factors and moving pieces to keep track of. Generally speaking, the market tends to favour sellers over the long term since there are usually more people looking for homes than homes for sale.
However, every once in a while, the pieces can fall into place and give buyers a window of opportunity. And the first few months of 2024 could just be the ideal time for anyone searching for that perfect place in Toronto. In this post, we’ll take a look at what signs to look for that might indicate a shift in favour of buyers.
More Inventory Is Available
The first sign that conditions might be in your favour is a sudden influx of available inventory. The last few years have been marked by multiple offer scenarios and all-out bidding wars. At one point, Toronto’s housing inventory dropped to just two weeks’ worth of supply, a record low for the city.
Since then, new listings have been trending up. In July 2023, there was an increase of 11.5% in properties hitting the market compared with the previous year. By September, the number of new listings soared 44.1% higher than in 2022.
With more homeowners looking to sell, there are fantastic opportunities for buyers. This is especially true for first-time buyers or downsizers who are interested in a townhouse or condo.
Are you a first-time buyer trying to break into the Toronto market? The posts below might help:
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Fewer Buyers Are in the Market
More listings are available, and there are fewer buyers with the ability to purchase them. That combination brings Toronto into a scenario that has rarely happened over the last few years. Yes, Toronto is currently in a buyer’s market!
If buying a home has been on your agenda for a while, the timing couldn’t be better. You’ll have less urgency when you find a home that seems to meet your needs. You can take the time to research the property to ensure it is truly the right choice.
Plus, you’re less likely to make an emotional decision in the spur of the moment. The current market is even favourable when placing conditional offers. This can provide you with greater peace of mind as you ensure that the house is all that it seems. Requesting a home inspection or a financing condition are no longer the deal breakers they once were.
Often, the seller may be willing to make concessions to finalize the transaction. Even if they won’t lower the price, they may offer more inclusions such as the brand new patio furniture or those beautiful stainless steel appliances.
Sellers Are Willing to Negotiate
To understand why Toronto has shifted more towards a buyer’s market, you don’t need to look further than the headlines. Stories of inflation and interest rates are everywhere. Now, with speculation that the Bank of Canada might lower rates, many would-be buyers have decided to sit back and wait. If everyone jumps back into the market all at once, conditions could quickly change again.
Some homeowners are also waiting for the spring market to sell in the hopes of getting a better price during the traditionally busy season. If someone is selling now, they likely have a good reason. They may have received a job offer and need to relocate. Or their mortgage term may expire and they want to move somewhere less expensive.
In any case, a highly motivated seller is likely to be more willing to negotiate, especially when serious buyers are few and far between.
Looking for a fun way to enjoy a Toronto afternoon with your family? Here are some ideas to get you started:
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Plan Your Next Steps
With more inventory and less competition, the next three to six months could be very advantageous for buyers. Later on, we may see a return to a seller’s market, especially if interest rates start to decline.
Reduced borrowing costs will likely inspire many hesitant buyers to re-enter the market. If this happens, we may find inventory getting scooped up quickly and a return to multiple-offer scenarios. Toronto real estate is always on the move. For buyers who have the means, now is an excellent time to begin the search.
Keep in mind that making a decision today doesn’t mean signing on the dotted line tomorrow. You can take smaller steps to move toward your goals without pressure.
- Consulting a local real estate agent can give you an idea of how much you can afford and what options you have in this current market. You can begin making your wish list and comparing it to what you find on Realtor.ca and the MLS®.
- In addition, you can get pre-approved for a mortgage. Taking this step doesn’t obligate you to buy a house, but it does empower you.
Taking these smaller steps now can provide a clearer picture of your budget so you can start narrowing down your choices. Plus, you can lock in the current interest rate for the next 90 to 120 days. There is no guarantee that the Bank of Canada will reduce interest in 2024, but your pre-approval entitles you to the lower rate if they do.
With a vision of what you want and a plan in place, you are well on your way to owning a new home in Toronto.
Do you have questions about buying a home or the current market in Toronto? We are here to help! Reach out to us at 416.443.0300 or Erica@EricaReddy.com for more information today.
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