No one knew what would unravel when the government announced it’s Fair Housing Plan. However, we don’t think that anyone would have predicted what has happened, particularly in the Etobicoke real estate market.
The dramtic change in the market has hit the press but you need to read more than the headlines. In this post, we’ll first reveal what we’ve been seeing in South Etobicoke (crazy times indeed). We’ll then expand to let you know what this means for buyers and sellers and offer tips for what to do next.
Let’s get started with the current picture in our neighbourhood!
The Current Etobicoke Real Estate Market
As we’re embroiled in the everyday inner workings of the market, we’re naturally afforded deep insight into what’s happening right now. Here are the two main facets of what is unfolding:
1. Buyers Have Taken a Step Back
Buyers exhausted from losing bidding wars have decided to take a break from house hunting. Weekend open houses that only one month ago would have seen over 50 visitors are now sparse. Homes that ought to have been snatched up in bidding wars on offer nights aren’t even seeing multiple offers.
It’s almost as if someone turned off the faucet and the buyers have disappeared. To put it in a different perspective, in January and February, the average number of days on the market was seven. Today there are plenty of homes that have been listed for more than 20 days.
2. Sellers Have All Appeared at Once
Many sellers that have been considering selling for a while all decided to list at the same time. Suddenly, inventory of houses in South Etobicoke has increased by over 50% compared to levels earlier this year.
Of course, knowing what’s happening right now is helpful, but what does it mean for future buyers and sellers?
What This Means for Buyers
Unfortunately, in the current climate, it’s extremely difficult to predict if house prices will go up or down. Of course, it’s always impossible to tell for certain what will happen in the future, but this is even more true in turbulent times. You may wait six months to find prices have gone up, or you may wait it out and be discover some relative bargains.
What we do know is that right now there are more homes to choose from, and there may be extra room for negotiations with sellers that have already bought. This could be the break you’ve been waiting for.
How It Affects Sellers
Sellers shouldn’t become disheartened with the rise in competition. However, with more homes on the market, it’s even more important to declutter and stage your home so it looks its best. We also know that pricing your home correctly in this new market is critical. For several years we have been seeing offer night bids, multiple offers, and selling prices far surpassing asking prices.
However, in contrast, many current buyers are shying away from offering on a property that already has multiple offers. As a result, more sellers are moving towards a strategy that puts the listing price closer to the expected selling price, instead of trying to drive bidding wars.
What Buyers and Sellers Can Do
While there are definitely changes happening, it is still possible to navigate the market to everyone’s benefit. Whether you are a prospective buyer or seller, it’s important to do your homework and take the appropriate steps for the current climate.
It’s always a good idea to work with a neighbourhood specialist who can keep you up to date with what’s going on in your specific market, what actions you can take, and when to take those steps. Things change quickly and you want to be in the know to make a wise real estate decision.
The ThompsonSells team lives and breathes Etobicoke real estate. You can reach out to Jody here if you want more information about the market in general or a bit of advice on what’s best for you in this volatile environment.
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