What does a cooling real estate market mean for you? Toronto felt like a seller’s market for so long that there seemed to be no end in sight. Prices were rising, bidding wars were frequent, and potential buyers grew worried. But what happens when prices start to dip, listings flood the market, and buyers become more in charge?
If you’re looking to sell in a cooling real estate market, here are the 5 things you should keep in mind…
1. (Over) Supply and Demand
After the release of the Ontario Fair Housing Plan, a flood of listings hit the market. These were listings from sellers concerned about the cooling real estate market. But in trying to cash in, the market became diluted. Buyers could take their time, and homes sat on the market for longer. As these less-serious sellers pull out of the market, your property can rise to the top.
2. Things Remain Unpredictable
The recent lull in prices isn’t universal, and it can be heavily dependent on your neighbourhood. While prices have come down, this mostly stems from average homes fetching above-average prices. Good homes – in better neighbourhoods – have retained their value. If you’re looking to sell, it all starts with where you live. It’s becoming more about the home and the area than just the market alone.
3. End of Summer Blues
The average home’s sale price dropped 35.6% halfway through August (Toronto Real Estate Board). While this was less than July’s price drop (40.4%), it was still a significant drop year-over-year. Unless you need to sell right at this very moment, you may want to wait until later in the year, in the first half of fall, or until next spring. This is when buyers come back out, and when the market might start to normalize (and grow again).
4. Manage Your Expectations
Those looking to sell need to understand they can no longer sell with minimal effort for top dollar. A reasonable price is going to be dependent on the market, the home, and the neighbourhood. Buyer demand still exists, but it comes with an added emphasis on pricing and sales strategies. Dream buyers don’t come to your door anymore, you need to find them – which leads us to our final point…
5. Strategic Selling
It’s not about supply anymore; when you are selling in a cooling real estate market, generating demand is key. If prices continue to dip, it’s important to work with a team that can get you fair value, even in a less-than-optimal market. Buyers exist, but they want impressive homes – not just impressive prices.
If you want to sell your home for what it’s worth, you need to work with the team that has the experience to get it for you. For 30 years, our clients have trusted us to minimize risk, offer unbiased opinions, and ensure their best interests are served. Contact our team today to talk about your needs by emailing us at niels@christensengroup.ca or calling 416-441-2888.
