Another summer over, and now we enter one of the most glorious seasons of the year! Fall has arrived with its crisp, fresh air, the beauty of the leaves changing colour, the children returning to school and buyers considering their options to be settled into new homes prior to winter arriving.
One of the questions I’ve answered many times over the past few weeks is, “how do you feel the fall market will be?” Should I list my property now or is there a chance is will sell higher next spring? Do you think I should focus on finding a place this fall to avoid paying more in the active spring market? Will I pay more if I wait to buy?
The real estate market balanced during the summer of 2018 due to the uncertainty caused by the Government imposed foreign buyer’s tax and a second tightening of the lending rules; it maintained that state into the early part of 2019.
Over this year the market started to rebound as interest rates remained low despite modest increases, and the number of listings in comparison to buyers looking for an opportunity to step into the market remained low. This renewal of confidence in the market has created a positive environment in which sales volumes and property values have both increased.
In the many years that I have participated in the real estate market as a Realtor, there have been two corrections and our advice to those who are concerned about losing market value and their investment has been to sit tight and wait it out, assuming you’re in a position to do so, because every time there has been a correction, the market recovered and property values increased significantly over the previous markets values.
Last year we experienced a balanced market for the first time in several years and it opened opportunities for buyers who felt they had been pressured out of the strong Seller’s market over an extended period.
If we continue to lack inventory in detached, and semi-detached homes, that lack of inventory will continue to increase prices in those markets and therefore put pressure on the condo market, townhouses and the bedroom communities of the GTA such as Hamilton where traditionally prices and property taxes have been lower and more accessible for entry level buyers and the baby boomers looking to downsize. These smaller communities have seen a marked increase in value and sales as buyers look for more affordable opportunities.
The answers to the questions above must be tailored to each client’s specific needs and desires, however, if the past 3 weeks have been any indication, this is turning into a very busy fall market, with prices continuing to increase. Indicators are that interest rates will continue to remain low, and with some baby boomers deciding to remain in their homes, so will inventory, all indicating little change from the current pattern into next spring.
We are privileged to have such a strong real estate market allowing us to invest well in the comfort of our homes. Let me know if I may be of assistance in helping you to navigate this market to your best advantage and I hope you enjoy the beauty of autumn in Toronto as much as I do !
All my best,