Is the 2020 Toronto Real Estate market on your mind? We bet it is, and you’re probably wondering what’s going to happen. We’re starting to get that question from several of our clients, so we wanted to put together our thoughts on what we see coming, and things buyers, sellers and investors should keep in mind.
Pre-Construction Condos in 2020
Pre-construction is in an interesting phase, so we wanted to start there. There are SO many launches happening – some good and some, well, not so good. There are a lot of developments coming in the first half of the 2020 Toronto real estate market, and if developers want to see their inventory move, they need to stick with lower than market current market value pricing.
As a buyer, you need to stick with this key buying factor more than ever. DO NOT buy pre-con at above-market-value – it’s not going to pay back as much as other opportunities in real estate. Buyers are becoming more educated and by doing this, they’re making smarter decisions. The pre-con market won’t be about buying anything and everything; it will be about being selective and financially smart with your money.
So, if you are planning on purchasing pre-construction, get a financial analysis by an experienced realtor. We always prepare an analysis before a pre-con purchase for our clients. This outlook can determine if it’s a good or bad investment. We’ve got our eye on a handful of launches early in the year that will be exceptional investments. There are also some that are not good investment so don’t fall for the hype of every project. Research, research, research.
2020 Toronto Real Estate Market: Buying
With the expected interest rate drop coming in early 2020, more buyers are going to be in the real estate hunt than in 2019. Many have been waiting it out, looking at 2020 to be the year they make a move. Literally.
We have a number of clients who are waiting until the new year to get their pre-approvals, so they’ll be ready to hit the ground running in March. We believe A LOT of buyers are doing the same. A busy spring market is ahead.
What should you do if you’re going to be buying in the spring?
- Get your pre-approval in hand in January. Did you know your pre-approval is valid for three months? And if the rates go down during that period you qualify for the lower rate, giving you more spending power?
- Create your list of must-haves and nice-to-haves
- Start spending time in your top neighbourhoods on the weekends and in the evenings. See what you like and what you don’t like and write them down.
Our best piece of advice for buyers in the 2020 Toronto real estate market – be ready to pounce. Things are going to go quickly as the number of buyers ready to hit the market increases. We predict the “spring market” to get started as early as mid-February.
2020 Toronto Real Estate Market: Selling
With an influx of buyers in 2020, it’s a good time to consider selling. The condo market will continue to appreciate, so if you’re currently living in a condo and buying a house in the near future is on your radar, the spring market will be a good time to sell. You’ll get more money for your condo than ever before, and you’ll be able to take advantage of a slower appreciation semi and detached housing market. If you’re planning a family and need to make a move, the spring will be the time to sell.
Listing in the spring will need some strategizing. As with buying, you’ll need to be ready to make a move. Do any small renovations now. Fresh paint, new fixtures in the bathrooms and kitchen, and keep a clean yard. Get ready to list as you may need to jump quickly to take advantage of the first spring market buyers.
Ask your realtor to send you weekly updates. When we have clients who are waiting to list, we send them weekly updates on what’s happening in their neighbourhood. Competitive listings, prices, offers and days on the market. This is all critical to have to make a decision on getting your house up for sale and getting you the most money possible.
No one has a crystal ball and can tell you exactly what will happen, but all of our analysis and firsthand conversations with many, many buyers and sellers give us an excellent outlook for 2020. It’s going to be a damn good year for real estate so get ready and be prepared.
Want to learn more about how you can set yourself up for success if you’re buying or selling? Fill out the form below and we’ll get in touch right away. There’s no time like NOW to start.