MARCH MADNESS MARKET WATCH
Since the drastic rise in interest rates, people always ask me about the Real Estate market. The energy surrounding the question is one of concern. Gone are the days of double digit percentage growth and the never ending runaway Toronto Real Estate market. Depending on when you purchased your property or when you have to sell your property, creates the biggest range of emotion in the question. Will the interest rates continue to rise? I anticipate one more interest rate hike before the dust settles.
From my perspective, the Toronto market is stable, with an anticipated growth rate of approximately 2-3% per annum. Things have a way of working out as we approach more balanced market. The 905 market will be substantially different this year due to the higher supply of homes in these areas. Typically, buyers seldom buy in a buyers’ market, they merely watch the market and anticipate further declines. It is not until prices begin to increase that buyers regain their confidence and begin to purchase again.
When we analyze the Toronto Real S. Taitt market, the biggest factor moving forward will be supply of homes for sale. Whether the market is hot or cold, people will still need to move, relocate, downsize or transition to the next phase, therefore, there is always demand. Due to the lack of inventory or supply, prices will hold, and we will see a minimal decrease in overall values, however, adverse influence will have a larger effect on the overall values moving forward.
What is an adverse influence you ask? Anything that typically would affect the market value of the subject property. For example, backing onto railway tracks, no parking, or perhaps your home is on a busy street. These factors will have a larger effect on your bottom line give our new market conditions, however, they may not have been a factor when you purchased. Therefore, pricing and marketing strategy will be key if you decide to sell your home this year. That’s where experience comes in handy. Navigating this market could be tricky if you’re working with the wrong information, therefore, hiring a Realtor with experience and a proven track record in your neighbourhood is key.
I’m not sure if I have mentioned this before but I have over 30 years’ experience in the Real Estate Industry and I specialize in homes close to the Central Business District or in the downtownish areas as I like to say. Therefore, should you find yourself in need of a Realtor to receive a second opinion or simply require an opinion of the current market value, I would be honoured to assist.