October 11, 2024
The Changing Dynamics of Toronto’s Real Estate Market: A Shift from Buyers To Sellers?
The summer of 2024, particularly the month of August, was notably slow for Toronto’s real estate market. Both sales numbers and housing prices saw a decline, prompting many sellers to take their homes off the market. There has also been a rise in powers of sale due to sellers still struggling with higher mortgage rates.
However, as we enter the fall, many of these sellers are returning, though at either the same or lower prices, despite a drop in interest rates.
For a while now, Toronto’s residential real estate market, especially in areas like Don Mills, has strongly favored buyers. The reduction in interest rates, coupled with the anticipation of two more potential rate cuts in the near future, has yet to result in a noticeable increase in buyer activity. Despite the favorable conditions, many potential buyers remain hesitant to make their move.
This market hesitation is particularly interesting considering that first time buyers stand to benefit significantly from new rules, offering them advantageous conditions.
However, the question remains: is enticing buyers with lower mortgage rates and 30 years to pay the mortgage off truly beneficial in the long run?
There’s a clear demand from both sides. Buyers are eager to purchase, and sellers are keen to sell. The real estate landscape seems poised for a shift. If the anticipated rate cuts in October and January materialize, it could trigger a significant transformation, potentially turning the current buyer’s market into a seller’s market. With lower interest rates driving up demand, multiple offers on properties could once again become the norm, leading to an increase in housing prices.
Interestingly, despite favorable conditions, many buyers who were previously undecided about entering the market are still holding back. The expected rush of buyers, eager to secure properties before prices rise, hasn’t materialized yet. This is puzzling, given the combination of lower prices and reduced interest rates.
This situation presents a window of opportunity for buyers who act quickly, as the balance may soon tip in favor of sellers with rising demand and potentially higher prices on the horizon.
As the market waits for the next wave of interest rate cuts, the real estate landscape in Toronto is one to watch closely. Buyers may soon find that waiting too long could result in increased competition and higher prices.
Feel free to contact me should you have any questions about this or any other real estate matters. I have extensive knowledge of the market price and trends in the Don Mills neighbourhood, after years of practicing in this area.
If you are considering selling in the near future and would like an idea as to what your home is worth in today’s unpredictable, changing market, do invite me over for a confidential chat and I’ll be more than happy to discuss pricing strategies as well as the right time to sell, and much more. You will be glad you did.
Ecko Jay
Broker of Record / Owner