Can You Still Buy a House in Etobicoke for Under $1 Million?

A few years ago, your average middle-class family would never have dreamed of spending $1 million or more on a house of any kind, condo or detached. However, over time, demand for housing soared along with the prices. And the real estate market gets more hectic and less predictable with every passing day. 

One minute, we were in the midst of an aggressive seller’s market where houses sold at or above asking in the blink of an eye. There was no sign of slowing down until the Bank of Canada hiked interest rates to combat inflation. When that happened, many potential buyers hit “pause” on their plans to wait it out. 

For those still searching, they were ecstatic as housing prices dropped. Even with higher interest rates, buying a home became more accessible because less of a down payment was needed. For a while, prices were down, and we began to approach buyers’ market territory.

But all that changed again with pent-up demand taking hold and buyers jumping back into the market. How much has changed, and more importantly, can you still buy a house in Etobicoke for under $1 million?

Bucking The Long Term Trends

Though prices dropped temporarily, housing values have been rising steadily for decades. That rate of increase has sped up dramatically over the last few years, with the temporary decrease as an anomaly. Just look at what can happen within a very short window of time: 

In January 2021, the average price of a house in Toronto was $967,885. By March 2022, it peaked at $1,299,894. By the time October rolled around, the average price fell back to a “reasonable” $1,089,428, but you could still find houses for less if you searched diligently, as we wrote about in our post What Can You Buy in Etobicoke for Under $1 Million?

Today, it is still possible to buy a lower-priced home, but you may not be so lucky to find a detached house. In the current market, you are more than likely looking for a townhouse, condo, or possibly a semi-detached home. 

If you keep your eyes open, you may find a detached home for under $1 million in some neighbourhoods. However, many of these are in very rough condition and may need more work than the property is worth. 

You could renovate or even tear down and rebuild the home, but this would require a significant budget and may take longer than you’re willing to wait to bring your house up to your standards. You’d likely be better off increasing your budget to buy a move-in ready home because then, at least, you can roll the cost into your mortgage.

Buying a house may be more challenging than ever, but there are still opportunities out there. The resources below will help you be ready for them:

• Don’t Make These Mistakes When Buying A Home In Etobicoke
• What Compromises to Make When Buying A Home
• How To Make Your Home Purchase More Affordable

The Windows of Opportunity in Real Estate

The Etobicoke real estate market will likely favour sellers as demand grows and supply lags. However, nothing is certain anymore. Potential buyers may not have the selection they used to, but they do have the standard challenges and anxieties that often go along with owning a home. Even with very few listings available, it is human nature to hesitate to see what will happen. Low inventory and buyer hesitation make the current real estate landscape challenging for everyone, whether buying or selling.

That said, owning a home is still one of the greatest investments you can make for your future and your family. As a buyer, it’s critical to learn to spot those rare opportunities and be prepared to act on them. Fortunately, there are ways you can give yourself an added advantage when house hunting during these challenging conditions.

Are you relying on the sale of your current home to empower your next step? The posts below will help you achieve the best results:

• Why List Your Home in a Low-Inventory Market?
• What to Look For in a Real Estate Agent When Selling Your Home

Give Yourself an Edge

An educated buyer is more likely to be a successful buyer, so it pays to take the time to research and understand the process. With many listings selling fast, speed is often of the essence, so anything that allows you to take fast action will help during competitive situations.

• Saving as much as possible for your down payment will help by lowering your monthly mortgage. A higher deposit can also be the one thing that sets your offer apart from other buyers.
• Getting pre-approved locks in the lowest interest rate between now and the next 90-120 days and allows you to act quickly when you find a house and want to place an offer.
• Try to get to know the seller and what their motivations may be. Perhaps you can find a way to make a compelling offer without necessarily offering more money. A fast sale without renovations may be more appealing than earning a few thousand dollars more from the transaction. Every seller is different and it is worth exploring your options.
• Understand that you may have to make unconditional offers to stand out. Take some time to know what that means, what risks are involved and how to minimize any downsides.

Buying a house might take some time in this market, so it’s best to prepare for a marathon rather than a sprint. By working with a real estate agent with their feet on the ground, you will be in a better position to understand and overcome the risks and challenges of the current market. 

Are you ready to begin the hunt for a new house in Etobicoke? We can help you navigate these uncertain conditions and find that new place to call home. Reach out today at contact@thompsonsells.com or call 416-450-5900 with any questions or to get started.