While the market is seeing some price dips April - May (and onward into the first week of June) it's important to note that prices are UP year over year in Toronto.  The sky is not falling and we are not having a crash. We are having buyer resistance to the obscene and crazy market of almost yesterday coupled with some interest rate hikes that may take some buying power out of the pockets of some.   And, as is typical, buyers react to this news before sellers catch up! 

So is the Toronto Real Estate market crashing?

The media has a great deal of influence on consumers - remember markets can be hyper local while it's my job to look at what's going on in many area, It's important to understand what's going on in your specific area of interest, because different segments can behave differently.  And when I say segments, I mean:

  • location
  • price point
  • type of property
  • features of property
  • renovations

As you can see, the Real Estate market can have many segments & even micro segments that all react differently to market changes

Here is some learning from the last market downturn (2017):

- not all types of housing are impacted the same

- some neighbourhoods go to sleep, meaning prices do not drop, they just do not rise and demand remains good

- lowest price range in any type of property drop the least as this is the most affordable housing

- with more inventory, buyers are pickier 

- beautifully renovated or properties with special features sell fastest and highest while average properties will linger

- in Toronto, the Central core out performs the other areas (with exceptions to pockets) overall and in Central from the Allen to Leslie and north

- the suburbs take the greatest hits - and 905 even more

- condos, those that are true filing-cabinets-in-the-sky such as 400-700 square feet, have problems

- condo buildings that are predominately owner occupied, upscale, fair well

- condo buildings with a dominant tenant base - hit hard

- despite all negatives, no matter how bad the economy, no matter how high interest rates - houses sell. Every day, houses sell. That simple from condos to mansions, priced right everything sells.

- the bottom rarely drops out - in Toronto a "good deal" is if you get a properly priced property for 95-99% of list price

- lowball offers insult sellers and rarely work in a buyer's favour

- Find listings that have been on MLS for a bit with, with motivated sellers and be realistic - but a good deal can be had with a skilled negotiator. 

- While it's virtually imp0ssible to time the market, there was a 5 month cycle last time we saw a market dip from when prices fell to when they started to rise

Here's my Video update of what's going on at the end of May & beginning of June: 


 Some sellers continue to test the market:  as a consequence, you will see homes staying for sale longer, as some sellers want to hold out for peak prices (we call these 'unmotivated sellers' - they are willing to wait out this cycle.

Offers anytime may still mean sellers want over asking price:  It used to be that there were 2 strategies used to sell a property: 1. List at a price that left room for negotiation and 2. List low to stimulate a bidding war.  Now there seems to be a 3rd strategy - if the property did not sell in a bidding war, the seller keeps the price low to encourage showings but still wants over the asking price. 

...

I am pleased to present my newest listing at 4 Penzance Dr., Bendale.   This bungalow has been well maintained and updated, and as you can see from the pictures this Scarborough bungalow for sale has very nice curb appeal! 

Bendale is located in Central Scarborough, near the Scarborough Health Network General Hospital and just south of Thompson Park.   Close to schools, parks and shopping this home sits on one of Bendale's pretty tree lined winding streets.  

The finished basement has 2 more bedrooms & while this is currently a single family home it's separate entrance lends it to adding a contained basement suite in the future. 

Another unique feature of this property is the outside workshop!  It's got power, a built-in saw and it has heat & air conditioning too.  

Workshop at 4 Penzance

 

Come take a look at the video tour - it's super cute inside! 

List price is $1,199,000


...

You may have seen the news, it's been all over the media!  The housing market across the GTA is adjusting to higher borrowing costs, with the number of transactions down on a monthly and annual basis. As has been the case with previous rate tightening cycles, some home buyers have moved to the sidelines to determine how they will reposition themselves in the marketplace given the higher rate environment and related impact on affordability.

 Subsequently, average prices may be down in certain areas from the peaks of February & March.   Outlying areas tend to react first to any market change. 

Will the market crash?  Supply still seems to be low in most areas.  Prices are still up 15%  vs. last year.  Areas that are the most affected:

  1. Beautifully renovated properties - still command top price   
  2. Areas that are desirable to live (or are connected to transit) - still command top price
  3. Entry level properties - buyer demand for value priced properties is still strong

Some sellers continue to test the market:  as a consequence, you will see homes staying for sale longer, as some sellers want to hold out for peak prices (we call these 'unmotivated sellers' - they are willing to wait out this cycle.

Offers anytime may still mean sellers want over asking price:  It used to be that there were 2 strategies used to sell a property: 1. List at a price that left room for negotiation and 2. List low to stimulate a bidding war. Now there seems to be a 3rd strategy - if the property did not sell in a bidding war, the seller keeps the price low to encourage showings but still wants over the asking price.

More than ever, choose to work with an experienced Realtor! As a consumer, understand that crazy home prices mean that many people think getting their real estate licence will make them some fast, easy money.  This means there are many part time & inexperienced realtors out there.  Can you imagine if you were the buyer and your agent did not understand how to draft a contract that protected you in your biggest financial transaction?  Or if you were pressured into making a quick decision without the advice of an experienced professional? 

Overall statistics:


My personal insights:

  • when I'm the listing agent, I am noticing you need to price aggressively to get as many of the 'sideline buyers' through a property as possible
  • there are fewer offers on offer night, but prices are still high for in-demand homes
  • there are a lot of sellers hoping for February/March prices 'testing the market'
  • buyers think the sky is falling and are not afraid to put low offers forward
  • offers are coming in with conditions (we have not see that for a while)
  • there are opportunities to be had - you need to look for them! 
  • motivated buyers are taking their budget and buying 'lower rung' properties so as not to miss the market
  • anticipated interest hike in June may take another bite out of the prices...
  • Scarborough still remains one of the best value areas in Toronto - both for Condos and for Homes

We are not sure how long these conditions will last, perhaps through the summer? 


 




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If you're considering selling your Scarborough home in a changing market, what are some of the most important things you can do to ensure a quick & profitable sale?  Because I am a real estate agent specializing in working with Seniors, I often need to suggest budget-friendly updates that have excellent return on investment.   

Many of my clients have not done updates to their home in many years, or are on a fixed income so need guidance and help fixing up their Scarborough home for sale.  

First and foremost, the home needs to be decluttered (this home was completely cleared out)  

Here's a video what we did with this home; which was recently sold for 125% of the original list price:


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Recent Blog Posts

While the market is seeing some price dips April - May (and onward into the first week of June) it's important to note that prices are UP year over year in Toronto.  The sky is not falling and we are not having a crash. We are having buyer resistance to the obscene and crazy market of almost yesterday coupled with some interest rate hikes that may take some buying power out of the pockets of some.   And, as is typical, buyers react to this news before sellers catch up! 

So is the Toronto Real Estate market crashing?

The media has a great deal of influence on consumers - remember markets can be hyper local while it's my job to look at what's going on in many area, It's important to understand what's going on in your specific area of interest, because different segments can behave differently.  And when I say segments, I mean:

  • location
  • price point
  • type of property
  • features of property
  • renovations

As you can see, the Real Estate market can have many segments & even micro segments that all react differently to market changes

Here is some learning from the last market downturn (2017):

- not all types of housing are impacted the same

- some neighbourhoods go to sleep, meaning prices do not drop, they just do not rise and demand remains good

- lowest price range in any type of property drop the least as this is the most affordable housing

- with more inventory, buyers are pickier 

- beautifully renovated or properties with special features sell fastest and highest while average properties will linger

- in Toronto, the Central core out performs the other areas (with exceptions to pockets) overall and in Central from the Allen to Leslie and north

- the suburbs take the greatest hits - and 905 even more

- condos, those that are true filing-cabinets-in-the-sky such as 400-700 square feet, have problems

- condo buildings that are predominately owner occupied, upscale, fair well

- condo buildings with a dominant tenant base - hit hard

- despite all negatives, no matter how bad the economy, no matter how high interest rates - houses sell. Every day, houses sell. That simple from condos to mansions, priced right everything sells.

- the bottom rarely drops out - in Toronto a "good deal" is if you get a properly priced property for 95-99% of list price

- lowball offers insult sellers and rarely work in a buyer's favour

- Find listings that have been on MLS for a bit with, with motivated sellers and be realistic - but a good deal can be had with a skilled negotiator. 

- While it's virtually imp0ssible to time the market, there was a 5 month cycle last time we saw a market dip from when prices fell to when they started to rise

Here's my Video update of what's going on at the end of May & beginning of June: 


 Some sellers continue to test the market:  as a consequence, you will see homes staying for sale longer, as some sellers want to hold out for peak prices (we call these 'unmotivated sellers' - they are willing to wait out this cycle.

Offers anytime may still mean sellers want over asking price:  It used to be that there were 2 strategies used to sell a property: 1. List at a price that left room for negotiation and 2. List low to stimulate a bidding war.  Now there seems to be a 3rd strategy - if the property did not sell in a bidding war, the seller keeps the price low to encourage showings but still wants over the asking price. 

...

I am pleased to present my newest listing at 4 Penzance Dr., Bendale.   This bungalow has been well maintained and updated, and as you can see from the pictures this Scarborough bungalow for sale has very nice curb appeal! 

Bendale is located in Central Scarborough, near the Scarborough Health Network General Hospital and just south of Thompson Park.   Close to schools, parks and shopping this home sits on one of Bendale's pretty tree lined winding streets.  

The finished basement has 2 more bedrooms & while this is currently a single family home it's separate entrance lends it to adding a contained basement suite in the future. 

Another unique feature of this property is the outside workshop!  It's got power, a built-in saw and it has heat & air conditioning too.  

Workshop at 4 Penzance

 

Come take a look at the video tour - it's super cute inside! 

List price is $1,199,000


...

You may have seen the news, it's been all over the media!  The housing market across the GTA is adjusting to higher borrowing costs, with the number of transactions down on a monthly and annual basis. As has been the case with previous rate tightening cycles, some home buyers have moved to the sidelines to determine how they will reposition themselves in the marketplace given the higher rate environment and related impact on affordability.

 Subsequently, average prices may be down in certain areas from the peaks of February & March.   Outlying areas tend to react first to any market change. 

Will the market crash?  Supply still seems to be low in most areas.  Prices are still up 15%  vs. last year.  Areas that are the most affected:

  1. Beautifully renovated properties - still command top price   
  2. Areas that are desirable to live (or are connected to transit) - still command top price
  3. Entry level properties - buyer demand for value priced properties is still strong

Some sellers continue to test the market:  as a consequence, you will see homes staying for sale longer, as some sellers want to hold out for peak prices (we call these 'unmotivated sellers' - they are willing to wait out this cycle.

Offers anytime may still mean sellers want over asking price:  It used to be that there were 2 strategies used to sell a property: 1. List at a price that left room for negotiation and 2. List low to stimulate a bidding war. Now there seems to be a 3rd strategy - if the property did not sell in a bidding war, the seller keeps the price low to encourage showings but still wants over the asking price.

More than ever, choose to work with an experienced Realtor! As a consumer, understand that crazy home prices mean that many people think getting their real estate licence will make them some fast, easy money.  This means there are many part time & inexperienced realtors out there.  Can you imagine if you were the buyer and your agent did not understand how to draft a contract that protected you in your biggest financial transaction?  Or if you were pressured into making a quick decision without the advice of an experienced professional? 

Overall statistics:


My personal insights:

  • when I'm the listing agent, I am noticing you need to price aggressively to get as many of the 'sideline buyers' through a property as possible
  • there are fewer offers on offer night, but prices are still high for in-demand homes
  • there are a lot of sellers hoping for February/March prices 'testing the market'
  • buyers think the sky is falling and are not afraid to put low offers forward
  • offers are coming in with conditions (we have not see that for a while)
  • there are opportunities to be had - you need to look for them! 
  • motivated buyers are taking their budget and buying 'lower rung' properties so as not to miss the market
  • anticipated interest hike in June may take another bite out of the prices...
  • Scarborough still remains one of the best value areas in Toronto - both for Condos and for Homes

We are not sure how long these conditions will last, perhaps through the summer? 


 




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