Toronto Real Estate is experiencing a Seller’s Market
Especially neighbourhoods South of Bloor close to the Downtown Core like; Leslieville, Riverside, Riverdale, High Park, Roncesvalles, The Danfroth area, and East York, are all extremely low on inventory (sorry, hate to call peoples homes inventory, they’re homes, beautiful family homes) and if we’re going to see any sort of balance in the market, we need more people to sell up. Although we are in a Seller’s market and some homes are attracting upwards of 12 offers, the prices are still in line with local, recent comparable sales. Don’t be fooled by unreasonably low asking prices (aka silly games). Take a peek at our earlier post about asking prices.
Now, to get to the point. A question that each one of us get asked almost daily: “Am I going to make money on this house? ” Unfortunately to answer this question we’d need a crystal ball. Can the market take a downward spiral next week and cut property values by 25%? Sure, but that would require some serious trigger (highly unlikely). A more likely scenario is that the market becomes more balanced and perhaps even shifts to a Buyers’ market. Prices may even dip by a few percent, or not.
Why are you buying this house? If you’re buying with the intention of selling within the next year or two you’re likely going to lose money (remember there are costs when selling your home). Toronto Real Estate, and Real Estate anywhere else in the World for that matter is a long term play. Are you buying a family home that you plan on staying in for a number of years? Then why be so concerned about what the house may be worth in a couple? It’s normal for the market to fluctuate and it’s very important to remember that you’ll only lose money if you sell in a downward dip. If home values fluctuate while you’re enjoying your home, what’s the difference?
As Real Estate professionals our goal is to get you the right home and to ensure you don’t overpay for it. We help take the emotion, hype, hysteria created by some situations out of play and focus on the facts. If the purchase makes sense, we’ll help you get there (we’re pretty good at that here at Spring). Just remember, Real Estate is a long term play (in most cases). Focus on the house as a home, not a short term investment.
Here are a few resources for you:
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