I am starting to see a lot more demand from buyers in the Toronto Market looking to start their home search in September.
Getting phone calls in July and August is nothing new but considering how things have gone these past few months I am a bit surprised.
The timing makes sense.
If you were looking for a 3 bedroom low-rise home under $1M in the GTA the first quarter of this year, there was almost no chance of buying anything. They made up just 7% of all low-rise sales; today they make up 25% of all low-rise sales.
So buyers who were priced out of the Toronto market 5 months ago, are hopeful that they can finally buy a home. From the buyers I talk to, they all realize that if they buy this fall, there is a chance that prices may fall further in 2023; and they're fine with that.
They're fine with it because they just want a home of their own for the long term. They're not as concerned about what happens over the next 6-18 months because they know it's impossible to time the market. When you look at Toronto Real Estate market in 10-year chunks it has always performed remarkably well.
Source: Move Smartly Monthly Report, Aug. 2022
Buy Now Or Wait?
Some out there may argue that it's better to rent now but those people have no idea how competitive the rental market is right now. People are clamouring to secure low-rise rentals right now while the market is in flux and rental prices are soaring as a result. Multiple offers for rentals is commonplace.
The fact is, there is no perfect answer to this question. Buying now and waiting for a bit both have their pros and cons.
I can appreciate why some buyers want to buy now and settle into their own home sooner rather than later and I can also appreciate why some risk averse buyers may want to wait.
Every person has to do what works for them.
Have a question about real estate? Email your questions to dean@deangibbons.com and I'll get back to you right away.