Toronto real estate market is shifting. Sellers, choose your strategy wisely.

market shift

Since Easter, two things have happened to slow down the Toronto market. 1. Many buyers have pushed the pause button in anticipation of the budget and some were just fed up with the manipulation of this market and took a break. 2. A lot of new inventory has come onto the market.

It seems that the consumer confidence level has a lot to do with buyer’s buying decisions of late.

So how is this affecting the Toronto real estate market? The most desirable houses are still getting bidding wars and selling for record breaking prices, but many are seeing the offer date come and go without any offers at all. The less appealing properties are being passed over.

The condominium market is still going strong, however, most continue to achieve multiple offers on them going well over asking. I just listed and sold a condominium in the Indigo (50 Lombard Street; Suite 2104) for $63,000 more than the asking price with 4 offers competing.

Listings increased by 33.6 per cent in April compared with the same month last year. That’s a big jump  from previous months, when listings were ½ of what they were in 2016.

The insane price increases are not sustainable, and I’m happy to see the market slowing down to a more reasonable level.

The buyer’s I’m seeing today are taking their time and employing a more practical and logical approach to buying a property. This is very different from the emotional approach evidenced in the first quarter of this year. They have had so little to choose from for so long and are now feeling relief from this increased inventory.

As a seller, what strategy should you implement given these new market conditions? And what if you have already bought a property and must sell yours in order to afford to buy the one you have already bought firm?  My advice is to know your competition and show better and price better than it. I would also be very careful about underpricing and holding back on offers unless you have the best on the market at the time you sell. There are other strategies that work better in this market. Feel free to ask me how.

Going forward, I expect the Toronto real estate market will see a more balanced market. The shift is happening, that’s for sure!

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