Dear Toronto Home Seller or Buyer,

It’s time someone tells you the truth about what’s happening in the Toronto residential real estate market. Knowing the truth and ignoring all the misinformation that’s out there will improve your chances of buying your dream home and lessen the chances of you selling your home for too little.

I don’t own a newspaper or a tv or radio station, so I’m resorting to a good old-fashioned letter (using modern technology). I’m also not an economist or a financial guru.  I’m a Realtor. I’m in the trenches every day, working with buyers and sellers, finding out what they’re thinking and seeing what’s happening firsthand so what I’m about to tell you is more along the lines of anecdotal evidence than scientifically provable fact. Now, I can understand if you’re wondering why you should believe anything a Realtor tells you. After all, the real estate profession doesn’t always have the best reputation. But most of us care a great deal about our clients and chose this professsion because we like helping people. A large number of our clients are our family members, friends and neighbours and we’d never do anything that isn’t in their best interests.

So what exactly IS happening in the market? Well, the market appears to be strong and healthy, despite reports to the contrary. There are still many more buyers than sellers. This was in evidence again last  week when one of my clients listed her home in a popular neighbourhood. Instead of selecting a low list price, she opted for a  price that accurately reflected the fair market value of her home. Even without a low price to entice buyers, there were still more than thirty viewings. That’s a lot of buyers. There were two offers on offer day and the home sold for 5% above list price/fair market value. There are now still twenty nine other buyers out there looking for this type of home. And this isn’t an isolated incident. There are plenty other homes being sold with similar results.

What can you take away from this?  Buyers are willing to pay premiums for good homes that are well priced and in good locations, especially in the under $2m price range. If you’re buying, be prepared to move quickly and pay a premium for a good home. If you’re selling, you may or may not receive multiple offers, but don’t feel that you have to accept a low price.This  isn’t new. It’s the way things have been for the past fifteen years or so. (Yes, things were slower in December, but the market is always slower in December because of the holidays.) Remember, people will always need a place to live. Our population is growing and the supply of homes in Toronto is limited because we can’t make more land.  Interest rates are likely to stay low in the near future so as not to disrupt the economy. We’re unlikely to follow the U.S. into a real estate downturn because the fundamentals underlying our market are stronger and more conservative. In fact, the U.S. real estate market and economy are starting to show signs of life. All of these factors point towards a rosy future for residential real estate in Toronto.

There you have it. The truth about what’s really happening in the market. Hopefully, it’ll help you make better decisions if you’re in the market. And if you’re not in the market, please pass this on to anyone you care about who you think it might help.

Yours truly,

Michael Meltzer