Some Seller’s Were Too Confident (Toronto Real Estate Market Update)

Some Sellers Were Too Confident (Toronto Real Estate Market Update)

In recent conversations with buyer clients, I've often heard the phrase, "If I don’t get my price, I’ll just rent it." This statement appears to be a common refrain among sellers. Fast forward to today, approximately a month after we attempted to make an offering on a property. The agent representing the seller has reached out to say, "Santo, if your client hasn't bought yet, let's resubmit the offer." This signifies a shift in the seller's mindset—one that reflects a broader trend observed in the Toronto market as summer ends and the fall approaches.

Throughout the summer, we faced various negotiations, and many sellers seemed resolute, believing they could simply rent their properties if their price expectations were not met. However, as the summer has drawn to a close, it's evident that many sellers are reevaluating their positions. Several agents have now contacted us regarding properties we previously expressed interest in, indicating that sellers are becoming more open to negotiating after an initial unwillingness.

As we film this update on August 27, the market dynamics have shifted. Sellers who once believed they could confidently hold out for their price are reconsidering their options. The incoming fall market looms, filled with opportunities and uncertainties. More sellers are coming to terms with the reality that, contrary to their previous beliefs, not everyone has the financial flexibility to choose between selling and renting.

Current Market Conditions

In terms of current market statistics, let's break down the Freehold market for the city of Toronto, specifically focusing on detached homes for the week ending August 21. Notably, only 93 detached properties were sold during this week, with 21 sales surpassing the $ 2 million mark. This volume is surprisingly low, resembling sales figures we typically see during long weekends or specific holiday seasons.

Despite the overall sales tapering, average prices have shown a 10% increase year-over-year, now sitting at $ 1,731,000. Meanwhile, the median price has climbed 1% to $ 1,379,000. However, there's a discrepancy looming; although prices are rising, the months of inventory—now at 4.6—has been increasing, which typically indicates a market shift away from seller's favor towards a more balanced or even buyer-friendly market.

Middle neighborhoods, such as Scarborough, East York, and Riverdale, currently maintain a balanced market status, while areas like Willowdale and Yorkdale are leaning more towards a buyer's market.

In analyzing semi-detached properties, only 23 sales occurred, with an average sold price of $ 1,225,000, marking a 10% decrease compared to the previous year. Similarly, the townhouse market also reflected challenging conditions with just nine sales; the average price was $ 1,134,000—an increase of 8%.

Looking Forward

As we approach the fall, market expectations fluctuate. Many sellers have pinned their hopes on a resurgence in the market come September, but the reality is that many are facing a different scenario now than they anticipated just a few weeks ago.

Whether you find yourself anticipating a conversation about buying or selling real estate, please know that I'm here to navigate these shifts with you. If you're interested in discussing your real estate questions or scenarios, feel free to schedule a consultation via the link in the description below.

Keyword

Some extracted keywords include:

• Toronto Real Estate
• Market Update
• Sellers
• Buyers
• Detached Homes
• Prices
• Rentals
• Inventory
• Negotiation
• Fall Market

FAQ

Q1: What is the current status of the Toronto real estate market?
A1: The market is showing signs of a balanced environment with increasing inventory and fluctuating prices, particularly as we transition into fall.

Q2: Are sellers still optimistic about the market?
A2: Many sellers initially believed they could rent instead of selling, but recent trends show some sellers are becoming more flexible in negotiations.

Q3: How many detached properties were sold recently?
A3: For the week ending August 21, only 93 detached properties were sold, which is considered low for this period.

Q4: What does an increase in months of inventory signify?
A4: An increase in months of inventory typically indicates a shift towards a balanced or buyer's market, suggesting that prices may stabilize or decrease as inventory rises.

Q5: What should sellers consider before rejecting offers?
A5: Sellers are encouraged to consider the current market conditions and the potential challenges of waiting too long to sell, as it may lead to missed opportunities.