After many years of a real estate market that was more advantageous for sellers, the market is now showing signs of shifting dynamics. For prospective homebuyers wanting to enter the market or homeowners wanting to upgrade their home, these changes may signal an opportune moment to make their move.
Let’s delve into recent trends that suggest this could be the time that Etobicoke homebuyers have been eagerly waiting for.
Optimism surrounding mortgage rates:
There is a sense of optimism regarding mortgage rates, with an expectation of a potential downward trend. In fact, we are already seeing a decline in fixed rates.
No one knows the exact timing of future rate cuts but there’s confidence that we will start to see this decline in the coming months.
Increase in the number of homes sold:
January was the first month in many where we saw an increase in the number of homes sold. This increase in transactions suggests that a start of a renewed increase in confidence amongst buyers driving up the activity in the market.
Looking for tips on selling your home during a challenging market? The following resources may help:
- My House Didn’t Sell. Now What Should I Do?
- What to Look For in a Real Estate Agent When Selling Your Home
- Can You Earn More Money By Staging Your Home?
Ratio of inventory of homes for sale versus homes sold:
The inventory of homes for sale in Etobicoke is currently 2.5 times the number of homes sold in the last 30 days. This means that it would take 2.5 months to sell all the inventory if no new homes were listed for sale. In the condo market the inventory of homes for sale is 4 times the number of condos sold in the last 30 days. It would take 4 months to sell all the inventory of condos listed for sale. For comparison, in a hot seller’s market, this ratio is below 1.
Decline in average sold prices:
Etobicoke home prices peaked in the spring of 2023. Since then, we have witnessed a decline in prices of detached homes of approximately 8.5%. The condo market declined 9.8% (the drop does vary slightly by neighbourhood).
Increase in the average selling time:
In 2024, the average home in Etobicoke has taken 28 days to sell. This is an increase over 15 days in early 2023. The average condo has taken 36 days to sell in 2024. This compares to 18 days in early 2023.
This gives buyers a bit more time to make their house selection ensuring they are finding the right home rather than an impulsive decision under pressure.
Conditional offers are back:
Sellers are more open to considering an offer that is conditional on financing or home inspection. This helps buyers make a more informed decision.
Whether you’re a first-time buyer looking to enter the market or a seasoned investor seeking new opportunities, now could be a great time to make your move.
Don’t hesitate to reach out to us for personalized guidance and expert advice tailored to your unique needs and goals. Contact us at contact@thompsonsells.com or call 416-450-5900.
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