Why Toronto’s Condo Market Is Bucking the Headlines
Despite all the headlines around the world — the geopolitical issues in the Middle East and elsewhere — there is an underlying positive story in Toronto that is bucking the news trend. Sales are up year-over-year. Why, you might ask? The main reason is that condos have resumed trading. Given that condo sales make up the majority of transactions in the city of Toronto, this is a positive sign. It is worth noting that condo values have been down year-over-year for the last four years, but they’re now in the range of affordability for would-be condo buyers. The positive overlap of lower interest rates, more affordable condos, and available selection has led to an uptick in absorption. Give this story a few more months to a year, and I believe we will see a great improvement in the strength of our resale condo market — and, by extension, the freehold housing market overall.
The Real Reason Toronto Sellers Are Waiting (It’s a Product Issue)
We are often asked: How is the market going in Toronto? How’s business? We wanted to share our answers, as we think they’re relevant for both would-be buyers and would-be sellers. Our typical response is that the sales process takes longer. A listing presentation leading to a seller signing a listing agreement can be quick, but the go-to-market strategy can take weeks and even months. Historically speaking, after a listing presentation, the seller would be on the market in two to three weeks. That isn’t happening as often right now. The biggest reason is that sellers are searching for a great property that exceeds what they currently have, and the challenge is that there aren’t as many quality houses on the market in Toronto. This is a product issue. When a great property lands on MLS at the right strategic price, it sells in relatively short order. There’s actually a backlog of buyers out there just waiting for a good product. As that product comes on, they purchase it — and shortly thereafter, a good listing typically arises. We will not see a full market recovery until we regularly see more quality homes hit the market at appropriate prices.
Looking for more insights into Toronto real estate? Check out these related posts from my blog!
The Approach Behind Every Listing We’ve Sold Since 2022
The process of selling one’s home, particularly a condo in Toronto, can be stressful. We are, for lack of a better term — and certainly for lack of accreditation — real estate psychologists. It’s something we’re proud of, and it’s served our clients well as we help them navigate the stressors along the way. Our approach of white-glove support, creative thinking, solutions-oriented service, and high-touch, high-communication delivered with integrity helps our clients get through a challenging marketplace. We’re very grateful for the trust our clients place in us and for the fact that we’ve sold every listing we’ve had since the downturn began, four years ago.
Have questions about buying or selling in today’s market? I have answers! Reach me by email at ryan@ryanroberts.ca or call 416-925-9191.
