There are few places that are more challenging yet rewarding to begin the search for a new home than in Etobicoke. As part of the City of Toronto, real estate here has become more in demand, and housing prices have followed suit.
In recent years, affordability has also been impacted by higher interest rates. Mortgage lenders have become more strict about the qualification process, often approving lower amounts to account for the higher borrowing costs.
As a result of this, buying a home is not an easy feat for many people. However, the Etobicoke real estate market offers untold value when you know where and how to look. Now could be the perfect time for the right person to begin searching for that hidden gem.
The Only Certainties In Real Estate
If you ask anyone in the industry, they can tell you that the only predictable thing about real estate is that it’s unpredictable. One month, we’re in a fast-paced seller’s market where every listing gets snapped up in a heartbeat.
Then something happens in the world that impacts everything, and transactions can slow to a crawl. Anyone who bought or sold a house between 2020 and 2023 can attest to how quickly things can turn around. However, no matter how unpredictable or turbulent the market seems, you can be sure of two things:
- If prices are down, they will soon rise.
- If interest rates are high, they will come down at some point.
The best thing you can do is to have clear goals in mind and be ready to move when the time is right.
Information is power when buying during a challenging market. The posts below will give you some food for thought:
- Why Is Upsizing In Etobicoke So Difficult And What Can We Do About It?
- Can You Still Buy A House In Etobicoke For Under $1 Million?
- How To Tell If Your Dream Home Is A Money Pit Or A Worthwhile Investment
What Is Happening With Inventory?
The amount of available inventory is typically a key indicator of how the market is performing. In real estate, we measure inventory in terms of how many months it would take to deplete all available houses based on how quickly they are currently selling.
When houses are in short supply, they tend to sell fast. During the pandemic, inventory reached a critically low 2 weeks of inventory at one point. As a result, most listings received multiple offers, and many sold well over the asking price.
When inventory is plentiful, sales tend to slow down as buyers have more listings to choose from and will take their time to evaluate their options. The operative word for the above scenarios is “typical.”
However, the market is nuanced and rarely typical.
The rules don’t always seem to apply, or they apply to one segment of the market and not others. For example, high prices mean that many first-time buyers have put their buying plans on an indefinite hold. This has led to a surplus in the number of condos and townhouses available. For those looking for great value without much competition, the condo market is a great place to start!
The Value of Flexibility
Spotting the best value when buying a home is a combination of knowing what you need while being flexible about what you want. What represents incredible value to one buyer might be out of the realm of possibility for another.
For example, imagine you own a small condo and want to upgrade to a home with more space and a backyard. Traditionally, you might begin looking at detached homes; however, you may have trouble in the current market.
Detached homes have the lowest amount of availability, prices are high, and interest rates are through the roof. But what about upgrading to a townhouse?
It may not be the dream solution you had in mind, but real estate is very rarely about getting things perfect. Instead, you move up the property ladder one step at a time. And in this case, a townhouse can still check off all the boxes. You have more living space, a driveway, and an outdoor patio. And thanks to an influx of availability, you can upgrade at a price you can afford.
Getting pre-approved now can also help you along your path to homeownership. It will position you to act quickly, and will also entitle you to the lowest interest rate between now and the next 90 to 120 days.
Expanding Your Thinking
Buying a house for $1 million that may have been $500,000 five years ago may not seem like a bargain. However, everything is relative. It’s not what you’re paying today; it’s what the house will be worth another five or ten years from now.
Remember that prices will always rise eventually. If your million-dollar house turns into 1.5 or even $2 million, then you have made an excellent financial investment.
In Etobicoke, the appreciation of housing values is a near certain bet. Still, there are aspects to look out for that can add even more value as time goes on. For example, properties near highly rated schools and public transit will always be in demand and hold high resale values compared to homes without access to amenities.
Do you plan to sell your existing house before buying a new one? The posts below will help you get on the right track:
- Can You Earn More Money By Staging Your Home?
- Advice For Seniors Selling Their Family Home
- Why Working with a Local Etobicoke Realtor® is More Critical than Ever
Why Expert Guidance Remains Critical
Real estate can be a highly emotional decision, often accompanied by a major milestone in your life. It’s important to have the guidance of a professional who works in the market every day, understands all the market nuances, and can help you stay objective.
They can also point you to some of the greatest values in Etobicoke that you may not have considered. In a high inventory market, the best listings always sell because everyone wants the “hottest’ stock. However, these are often the worst investments, financially speaking.
Instead, smart buyers and those working with an expert Realtor® will keep their eyes open for undervalued properties. At first glance, these can look like the “worst” listings. However, a few minor upgrades can transform them with little cost and effort.
With a local real estate team by your side, spotting valuable opportunities and hidden gems in Etobicoke becomes much easier in any market.
Do you need help finding your next home? We have our pulse on the Etobicoke market and are happy to answer your questions. Reach out today to contact@thompsonsells.com or call 416-450-5900 to get started.
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