What’s happening with the fall real estate market in Toronto?? That’s the one question we get asked more than any other. No one has a crystal ball, but we’ve got a pretty good grasp of what’s happening based on our actual clients, people we talk to who are currently in the market and those giving us their insights to their buying and selling strategies. With Labour Day weekend and back to school both knocking on our door, we wanted to share our thoughts as we start to close out the summer and get into the elusive fall real estate market.
Buyers Will Be Back
Fall doesn’t only mean back to school, it means back to buying. Lots of buyers sometimes take the summer months off, putting their home search on hold while they enjoy family time, or take that long overdue vacation. Once the kids are packed up and back into their regular routine, time opens up for the house hunt to pick up again. We see the number of available listings to remain steady and stable, but there are going to be more buyers than usual in the fall real estate market. Also, we’re going to see a different type of buyer in the market – one with less buying power due to the mortgage rules and increases in interest rates this year.
3 Tips for Buying in the Fall Real Estate Market:
- Get an updated pre-approval immediately. Even if you don’t think you need one, get it. It will save a lot of headaches and heartbreak come offer time, if you know exactly what you can work with in terms of financials. The dream house you find can actually be achievable if you’re looking within the right budget.
- If you’re a ready-to-go-buyer, start looking now. Don’t wait until September or October, thinking there is going to be more inventory. There are going to be more buyers, so we suggest starting in August while most are still on summer holiday.
- If you’re thinking about an investment property that you can turn around and rent out, now is the time! Seriously, now. Rents are soaring and from our own experience, finding a condo to rent in downtown Toronto is quite the challenge. Condos in Toronto are being rented out in less than a day – the good ones are anyway. With the influx of new students, new hires and empty-nesters in the fall, there is no time like the present to purchase and polish up a condo in a mid-size building in an exceptional area. Trust.
3 Tips for Selling in the Fall Real Estate Market:
- You’re going to be in the driver’s seat come September and October. With the influx of buyers with wet appetites, you’ll likely see an increase in showings, shorter on-market days and a very successful selling period. We don’t see a huge market for competition among sellers so you likely won’t see several properties on your street or in your building up for sale during the same time as your listing. Think about putting a few extra special touches on your place during the month of August, to really stand out among buyers looking for a turnkey home.
- If you’re thinking about putting your house or condo on the market and haven’t done so already, we suggest waiting until the Fall – September or October. Waiting will align you nicely with the increased number of buyers out there and provide maximum exposure to the greatest searching audience.
- Don’t just think like a seller – think like a buyer too because you’re going to be one of them. Look at both sides of the coin. We are always asked about what to do first – buy or sell. Our answer – it completely depends on your personality and end-goal. Have you found your dream home and will do anything to get into it? If yes, buy first but remember, you may have to take less money for your current home in order to get into this dream home. Do you want maximum money for your current home and aren’t too particular on where you go next? If yes, sell first and buy later. But remember, you can’t have it both ways so pick an option and stick to your strategy.
Thoughts on Houses & Semis
If you’re in the buyer’s camp, our best piece of advice is to not shy away from a fixer-upper. Focus on the neighbourhood you want to be in and even if a house looks really old, seriously consider it. With the ageing homeowner market in downtown Toronto, we’re seeing quite a few homes that look like television sets from the Brady Bunch era or older. If the bones of the home are strong, don’t be frightened off by a little work. There is still a lot of money to be made on updating these types of homes.
The Crazy Toronto Condo Market
The condo market has everyone in Toronto buzzing and we don’t see this slowing down in the fall real estate market. Prices will continue to appreciate faster than homes, simply because of the lower entry price point. If you’re looking at the condo market, don’t dismiss many of the up-and-coming areas of the city. A lot of these have up-and-came and are now fantastic places to live. Areas that had a bad rap five years ago are blossoming with some of the nicest condos for sale on the market today.
Is Pre-Construction Still a Thing?
YES! But the pre-construction market is nothing like it was even a couple of years ago. We’re seeing so many buildings launching with entry pricing at higher levels per square foot than resale units in the same area, limiting money to be made on your initial down payment. There is a major push for big marketing dollars to get these launches off the ground, show lineups down the street and create all the hype possible. So be careful – work with a Realtor who knows pre-construction inside and out. Someone that can see beyond the hype and give you a proper financial analysis of your purchase. Buy in the right area, at the right price per square foot, work with the right agent and be aware of the good and bad developers. They both exist.