Unless you just bought your Toronto home last year, there’re many reasons you shouldn’t be living in terror of what many are dubbing the “Toronto Housing Market Crash” that has seen prices stall or drop across the GTA. Why? Because first, it’s a great opportunity for buyers AND second, if you’ve been paying down your mortgage and have lived in your home long enough, housing prices are still high enough for you to rake in a profit when you sell. So is the Toronto housing market crash real?
The Toronto Real Estate Bubble
When we hear the Toronto real estate bubble burst, it’s hard not to have a “Duh!” response, since the prices we were seeing were clearly not sustainable. But we get it. If you’re a homeowner and saw crazy high prices drop compared to last year, you can’t help but feel a little ripped off. It’s that gut-wrenching FOMO feeling when you decide to stay home and your friends have a great time without you. But again, you don’t have to feel too bad because unless you have to sell you can ride things out and if you do have to sell you’ll still make a very respectable profit (unless as we already mentioned, you bought your house in last year’s insanely over-priced market).
GTA Housing Prices Inching Up
We’re seeing prices finally start to inch up again meaning even that if they’re lower than last year, they’re still very respectable. Remember, prices last year were insanely off-balance (what’s known as an “artificial market”). So, when we hear about prices dropping, it’s from prices that never should’ve existed to begin with!
TREB reported that there was slight year-over-year gains in June which is always a good thing. According to an article in the Toronto Star on July 5th “The average price of resale homes in the region — including detached and semi-detached houses, townhouses and apartments — rose 2 per cent to $807,871 year over year and 3.3 per cent over May’s average price of $805,320.”
If those numbers are still contributing to premature frown lines, let’s not forget how the average home value looks in the downtown core. The Star reported “The average detached house price in the city was $1.36 million. In the 905-area communities, it was $928,560.” So again, if you’re thinking of selling, these numbers don’t suck, especially if you’ve lived in your home for at least a few years and benefited from home prices having already risen (in some cases substantially) in that time. Have you been in your home for more than 7-8 years? Then you’re still sitting on a goldmine.
Days on Market, Not So Bad
Also, because sellers have become price shy and nervous to put their homes on the market in fear they won’t get a good price, the inventory is lower. So, although you might see your house sit on the market a little longer, there’s no need to panic. Be happy to ride it out and figure with the average days on market sitting at 21 days in June, it’s really not that long. You also might still luck out and see some competitive bidding wars with fewer homes on the market for buyers to choose from. Add less competition and depending on your location, you could still end up selling quickly and above asking.
Day of the Condo
We mentioned back in April that there’s also a decline in demand for the ever-elusive single-family home in Toronto. Many people shopping for a home in Toronto are looking at less traditional options, making the low maintenance condo more and more attractive to a wider variety of age groups. For the older crowd, the idea of no stairs, no lawns to mow and generally being able to enjoy city living without all the pains of traditional home ownership are hard to resist. For the younger crowd, the draw of the city’s night life, shopping and general city vibe combine perfectly with a home that requires zero effort. That explains why condo prices continue to rise — 9.5 per cent over last June to be precise and people worry about the Toronto housing market crash.
Get a Real Estate Strategy
If you’re buying, you don’t have to worry about those ridiculous, unreachable prices we saw last year, and in many GTA hoods you’ll find something sure to good a good fit (as long as you’re not super picky or have champagne taste on a beer budget of course). We can’t help but point out that in any market, be it a Toronto housing market crash, a Toronto real estate bubble or a decline in buyers, you need to use strategy to make things work to your advantage. It’s all about keeping an eye on the market and knowing exactly what the market will bear when it comes to pricing a home, and likewise being shrewd enough to know how to get away with the lowest offer when buying. In other words, your strategy should be to look for an agent who knows their stuff and can offer insightful advice.
We can help you find your dream home or sell even when it seems the Toronto housing market crash is around the corner (it probably won’t). If you’d like some honest advice from our team of kick ass real estate experts, give us a call at #416-291-7372 or email us at firstname.lastname@example.org. We’re here to help!