Flat But Bumpy?
Trying to describe this real estate market to clients is a challenge.
Has the market dropped off a cliff? No. A cliff doesn’t work; the exception is pre-construction condo sales, in which case a cliff would be accurate.
Is real estate on the downside of the rollercoaster? Has it tanked? No, neither works there.
This is a nuanced market. Due to the lack of a better metaphor or analogy, this real estate market is flat but bumpy. Imagine driving down a dirt road in the country. It’s flat but a little bumpy from gravel and uneven tire grooves.
Let’s dig into this together with the above as our new working image.
Thinking about buying a home? Click here to browse my featured listings.
Don’t Get Stuck in the Past
Houses saw a decline three years ago, and so did condos. While condos have continued to slip and are doing their best not to hit the ditch, freehold housing is still on the road and focusing on the horizon, where we want to go. While some potholes exist in the hyperlocal markets, there are a lot of buyers out there.
What is essential to know as sellers (and buyers) is that today’s values are not what they were four years ago. When you see a house sitting on the market for an extended period, it is because the sellers are asking too much money for the home.
In many ways, it is that simple. In other ways, it is not that simple. In some cases, particularly high-end buyers, buyers have very little motivation, even with fair asking prices. The fact that most buyers looking in the luxury market have a very nicely appointed home in an excellent neighbourhood has them waiting on the sidelines to see what happens in the world of tariffs and the global economy. There is no need to buy or sell until the road is smooth and more predictable.
Looking for more insights into Toronto real estate? Check out these related posts from my blog!
- Where to Buy A Toronto Condo If You Don’t Want To Live Downtown
- What Are Must-Make Repairs Before You Sell Your Toronto Home?
- Is Rosedale A Family Neighbourhood?
The question becomes, where is the opportunity?
When the road is bumpy and seemingly flat, it can distract from what matters. Lifestyle is the key factor in residential real estate. Love where you live. Live the lifestyle you aspire to and desire to have. The move-up buyer is in an excellent position—call it the driver’s seat.
It’s important to acknowledge that we never know what the road ahead will bring. That’s simply a fact of life. We can only be wise today and be mindful of what could come in the future. But we only have today to work with.
You should know your finances, trust your judgement (and use us as your guide), and muster the courage to act. This is a good buying opportunity. The percentage drop we saw over the last few years means a dollar saving on the move up (ex., 10% less on a $1.5m home saves $150k, 10% less on a $2.5m home is $250k. Net a $100k savings). Not sure about that? Consider the buyer’s enthusiasm moving up in a hot seller’s market; those numbers flip to serve the seller (the buyer needs extra money to make the stretch).
Today’s courageous buyers have a great opportunity to move up. There may be competition on some houses, but it’s more like 2-4 offers versus 5-20 offers, which is downright frothy and ridiculously hard to win the home without pushing the financial envelope.
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.
