How’s the Market?

I’ve been hearing all sorts of different comments from people about what’s been happening in the real estate market in central Toronto. I’ve heard the market is slow. I’ve heard prices are up. I’ve heard homes aren’t selling. I’ve heard there are multiple offers. I’ve heard it all.

The problem with generalities is there’s rarely a uniform market description that applies to the market as a whole. If you look at averages, you may see the market behaving in a certain way or moving in a certain direction, but averages are comprised of many individual data points. Each data point represents a unique house and situation. Generalizing isn’t helpful when you’re trying to decide whether to move, where to move, when to move, what you can afford or what your home is worth. You need specific advice. That’s why I always encourage people to get personalized advice tailored to their specific house and situation when they’re thinking of making a move.

Having said all this, here’s a short description of the different kinds of things happening in the market these days:

The market in central Toronto is healthy. There are still more buyers than sellers, although supply did increase more than usual in September. The average sale price remains mostly stable and increased a bit in September.

People have asked me if the market is slowing down because not every house is getting multiple offers. When did every house get multiple offers? That never happened even when the market was at its hottest during the past twenty five years. It just doesn’t happen. Yes, there have been times when a larger percentage of homes have received multiple offers than others. This percentage varies. It could vary because the market is hotter at some times than others. It could also vary because more people use the listing strategy of choosing artificially low list prices that generate multiple offers at some times than others. Who knows?

Right now, some homes are receiving multiple offers and some are not. Fewer than when the market is super hot and more than when the market is balanced or slow. The ones that are receiving multiple offers are usually recently renovated and priced on the low side. Or they’re not recently renovated and are priced on the very low side. Other good homes are being priced reasonably and are taking longer than a week to sell, but they’re still selling for reasonable prices. Sellers are using different listing techniques depending on their goals and on the type of home they’re selling. There are different ways to sell your home for maximum value and in this market you have to use the strategy that’s best for your home and situation. You shouldn’t just list at an artificially low price and hope for the best.

As a buyer, there were more homes to choose from in September than there have been in a while. Having a wider selection is a good thing. But don’t be fooled. This selection will dry up before you know it. People just aren’t moving as often as they used to. When you see a home you like, move on it quickly. Don’t wait for a fire sale that will never come and don’t think you’ll see another home just like it in the near future. That’s not how things work in central Toronto.

So please remember there’s more to the real estate market than the headlines. They’re not meant to inform you. They’re meant to capture your click. Better to click on your Realtor’s email or cell number and find out the full story.