What Is Going On in the Etobicoke Real Estate Market Today?

“What on earth is going on with Etobicoke real estate right now?” This is the question everyone is asking in light of constant headlines about fluctuating prices, inflation, and interest rates that seem to be out of control. 

Since the market changes constantly, it will always be a valid question, and the answer is never the same. Up until recently, there was always some kind of rhyme or reason you could count on even as conditions changed. You had your busy seasons in the spring and fall, followed by slower periods in the summer and winter. In addition, you could once determine whether we were in a buyer’s, seller’s, or balanced market and plan accordingly.

Now, none of the old rules seem to apply, which can make it tough when planning to buy or sell a home. In this post, we’ll look at what is happening right now, what led up to this current situation, and what you can do to succeed even when the market seems to be working against you.

Nothing Lasts Forever In Real Estate

It seems like only yesterday that everyone was talking about the lack of available listings and how nearly every home generated intense competition and multiple offers. The period from late 2020 to early 2022 was one of the most challenging times to be a buyer in real estate history. Each month, the reports from TRREB (Toronto Regional Real Estate Board) became dire as inventory levels dropped to a critically low 6-month supply in certain areas. As the number of available homes for sale plummeted, prices soared. It seemed that cycle would never end, but things can happen quickly in real estate.

To learn more about real estate cycles, check out our post Know the Real Estate Cycles and Hack the Market . 

Change Is the Only Constant

A few interest rate hikes later, and sales activity slowed to almost a standstill. The market gradually became balanced, and then shifted to a full-on buyer’s market in late 2022. But while many buyers had temporarily stepped aside to try to wait out the higher borrowing costs, the demand for housing didn’t actually decrease. In fact, with the announcement by the federal government to bring in an unprecedented number of immigrants, we expected the demand to soar.

We did see a spike in sales in early 2023 as buyers began to adjust to higher interest rates and returned to the market in droves. Multiple offers reentered the picture, and prices began to climb once again.

A Total Reversal Can Happen in a Heartbeat

In late 2023, the real estate market appeared to be going strong in spite of higher interest rates. But then, conditions underwent a total reversal, with a 7% drop in sales and a 44% increase in new listings. What happened? This drastic swing was likely due to a few factors:

• Many homeowners who were up for a mortgage renewal couldn’t afford the higher interest rates and decided to list their homes for sale.
• Bond yields trended higher, which meant even fixed-rate mortgages increased. Many potential buyers simply cannot afford to buy a home due to high prices and increased cost of borrowing. Once again, they stepped to the sidelines.

A rise in new listings and fewer people searching put us squarely back into buyer’s market territory, but not like one we’ve ever seen before. This situation is difficult for both buyers and sellers to navigate.

The Challenges of Buying in This New Reality

In a traditional buyer’s market, inventory is high, and prices are down, which should make it easier to purchase a home. But in this market, prices are still out of reach for many people, and high interest rates only add to the pain. 

If you’re on the hunt for a new home in challenging conditions like these, you will need every possible advantage. The following steps can help you get the best value for your home anytime, but are even more important during a shifting market:

• If you are selling an existing home before buying, you must do everything you can to maximize the value of your sale and fund your next purchase. 
• Getting pre-approved for a mortgage ahead of time will help. This allows you to be more competitive in the event that another buyer wants the same home you do. Plus, you can lock in the lowest interest rate between now and the next 90 to 120 days.
• Work with a mortgage broker to find the best rates and terms possible.
• Save as much as you can for your down payment and deposit. The more you pay upfront, the less you will have to finance at a high interest rate.
• Work with an experienced real estate agent who can negotiate the lowest possible price on your new home.

Looking for an added edge when buying a home? The posts below will give you some ideas:

• Can You Still Buy A House In Etobicoke For Under $1 Million?
• How To Make Your Home Purchase More Affordable
• How To Tell If Your Dream Home Is A Money Pit Or A Worthwhile Investment

Tips for Sellers in a High Inventory Market

High inventory with few buyers searching can make selling your house a challenging feat. However, all is not lost, and you can still achieve a successful sale with a little patience and a strategic plan. The following tips will help you stand out and command the attention of buyers even in a slow market. 

• Remember the “Three Ps of selling: Price, presentation, and promotion.” During periods of slow sales activity, an attractive price becomes even more critical.
• Prepare your house by thoroughly cleaning, decluttering and making minor repairs. However, be very careful about overspending on renovations that won’t add value to your sale. Many updates are not necessary! Your real estate agent can guide you as to what will get the best results for the current market. 
• The more exposure your listing gets, the more likely it will sell. Extensive advertising is just the beginning. Expert networking becomes even more valuable in finding a qualified buyer.
• Be conservative about how long it will take to sell your home and how much you will earn, especially if you plan to buy a new house before selling yours. Realistic expectations are everything!

Looking for even more ways to maximize your sale in today’s market? The posts below will help you earn what your home is worth:

• Can You Earn More Money By Staging Your Home?
• How to Sell an Inherited Home 
• Why List Your Home in a Low-Inventory Market?

Look for Hidden Opportunities

Whether buying or selling, understand that Etobicoke is a huge market and is highly nuanced. What is happening to the city as a whole might not apply to your specific neighbourhood. Plus, you’ve seen for yourself how quickly conditions can change! Constant fluctuations may be a source of stress and frustration, but can also open up hidden opportunities in niche neighbourhoods that you never would have imagined.

This is one of the many reasons why working with a real estate team with experience in all conditions and scenarios is so important. When the market gets tough, a dedicated professional working relentlessly on your behalf is the answer.  

Do you have questions about buying or selling in Etobicoke right now? We are standing by to help you take advantage of every opportunity. Reach out today to contact@thompsonsells.com or call 647-282-7653 for more information or to take the next step.