With many of us isolating ourselves and having more time on our hands, it’s hard not to read all the news and get caught up in the drama. Unfortunately, the media will exploit a statistic, out of context, and use that to entice readers to click on an article. The problem is, the same news provider can have two completely opposite views on the same topic in the same day. So, what are you to believe? I want to give you a more balanced view of what is really going on in the greater Toronto are real estate market.
I’m sure you have heard that home sales volume has dropped off a cliff. The number of sales is down 69% and the number of new listings declined 63.7% compared to this time last year, but guess what didn’t fall?......prices!
Selling prices have held steady, and in some areas are even going up. Now, predictions call for a potential dip over the next month or so, but as much as an 8% increase by the end of the year. So, buyers may have an opportunity right now before prices take off again.
It’s a bit of a mixed message though. While there are some factors that would create downward pressure on prices, there are mitigating factors as well. Immigration is a big driver for real estate in Ontario, and with immigration being stagnated during the pandemic and less buyers willing to break social distancing practices, there SHOULD be less competition, which one would assume would give a downward pressure on prices short term due to less buyers on the market, however, even if 50% of buyers walked out of the market in the Toronto area, we would still have a strong market because it was so overly competitive to begin with.
On the flip side, with inventory and interest rates at record lows – depending on the area and type of home - there could be fierce competition. Keep in mind, Buyer and sellers that ARE out there right now are SERIOUS. Tire kickers, low ballers and less-than-serious buyers are not going to take the risks right now just to satisfy their curiosity. Most buyers that are willing to venture out during the pandemic NEED to buy and will move quickly on a good home. Sellers that have listed at this time are more likely to negotiate a deal. If they didn’t NEED to sell, they would probably wait for the current situation to clear up. So, deals are still getting done and, in some cases, we are still seeing multiple offers.
I did mention it was a mixed message, didn’t I?
Open houses are still banned and in-person showings are discouraged, and even prohibited in many condo buildings. So, if you are listing, you need a Realtor, like myself, who can utilize technology such as 3D Virtual Walkthroughs, video, virtual open houses and exceptional pictures. Otherwise you could be throwing away tens of thousands of dollars. Now, more than ever, a listing agent’s skill is paramount.
Of course, everyone’s situation is different, so I am happy to have a virtual coffee and chat with you to determine what is best for you.
Please stay safe