Are we now in a buyers market??

COLUMBUS, OH

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MATTHEW SLUTSKY

Senior Buzzer

2299

171

Are we now in a buyers market??

Is Toronto now in a buyers market, or is it still a sellers market?

What are the Realtors seeing? Any thoughts from @Brian Persaud, @Roy Bhandari, @mark savel, @Josie Stern, @Condo Chris, @Condo Chicks, @Cary Chapnick and others?

What are the purchasers seeing?? In "hot" areas I am still seeing a lack of listings, and some pretty high selling prices. But, I don't have my ear close enough to the resale market at the moment.

Ontario / General Chit-Chat

JOSIE STERN

Buzzer

109

3 BEST REPLY

The market is spotty and unpredictable. Yes some properties are still selling with multiple offers but not at the same level as the spring market. On the other hand there are properties that are not selling at all and are being reduced in price. Buyers who are buying today before selling their current houses should take extra caution and make sure they are not counting on a certain dollar value for their house because it may and then again it may not materialize. The strategies for buying and selling today are not as straight forward as they were even a few weeks ago. All that said it is a great time for first time buyers considering low interest rates and less bidding wars and also a great time for buyers moving up. Prices are softer and the challenge will be to convince sellers that the market has shifted and that they may not realize as high a price as their neighbour did just a few months ago. I think we will see sellers who are not motivated pull their houses off the market and wait for what think will be a better time to sell. So, yes, the market is different but I don’t think it’s a full blown buyers market nor do I think it’s a sellers’s market either. It’s a more balanced market and deals will be done between buyers and sellers that are realistic.

ARA MAMOURIAN

Buzzer

@Matthew, it really depends on the neighbourhood. I live/work/play east of the DVP and we just can't give a condo away but most move-in-ready houses are all experiencing multiple offers with full gut job reno houses also experiencing some serious action. We do a ton of work in Roncesvalles as well (very similar to leslieville in terms of community) and same story there. If you're out there looking for a condo/loft it's most certainly a buyers market in the East End but still mostly Seller's market for Houses.

DAVID SPEEDIE

NewBee

I agree with both Josie and Ara. I won't repeat them but well done you hit it on the head. I believe it is very localized. @Josie Stern I just experienced that exact thing with a seller who thinks their home is worth much more than what the current market dictates. More balanced and shifting towards buyers market for condos. Houses still see the multiple offers for good product but also slowing.

ANDREW LAFLEUR

Buzzer

119

It is better than it was a year ago for buyers, but still not really a juicy buyers market with deals all over the place.

Buyers, however, have been reading the papers, listening to the news, and assume that the sky is falling and they will get a deal, so they are putting in low-ball offers. problem is, sellers are not budging because most do not need to sell at any cost.

Bottom line: there is little to no desperation in the market. Sellers who don't have strong motivation to sell (e.g. job loss), will not 'sell at any price'. More and more of them will simply hold off and re-list in the spring. I've been saying for the past couple months that this lull in the market will be temporary and come the spring market of 2013, we will be roaring again, and prices will start rising once more.

ALEX KVITNITSKY

Buzzer

I second that opinion about low balling clients who think that sellers would accept low blow offers, but I would also like to add that now more than ever sellers that do need to sell would entertain slightly lower offers as oppose to what would have been the case just not too long ago when the market was STEAMING.

CYNTHIA OSTOS

NewBee

Thankfully here in Canada we still have a very strong market. Compared to other countries it is very organized and level of risk is minimal. It safe to say that investing in real estate here is still a very sound investment. The market always cools off during this time of the year. In saying that I still think buying in December/January is a good time to try and get a deal based on statistics. Its also good to sell because you have less competition. I think condo market is definatley taking a hit due to too much supply and prices are coming down so it is more of a buyers market. Single family wont see a buyers market until there is more supply than demand which I dont think will happen any time soon!

ALLEN

Buzzer

192

People will simply take their property off the market if they don't want to sell at a reduced price or if the market takes a significant downturn. We are not like the U.S. where people are forced to sell due to economic reasons.
This will create reduced inventory and create slightly more demand, so it seems like there will be always this see-saw momentum in our real estate market. At least in resales.

In terms of new and pre-construction condos, it is more of a buyers market as we have been trough the most sales ever and the market is taking a breather, especially with the slower holiday season approaching. Developers are offering incentives such as 1- to 3-years free maintenance, free lockers, reduced/extended deposit structure,free assignment fees, etc. to sell off their remaining inventory,mean while upcoming new projects are postponing their launches til the spring, a traditionally strong season for sales.

Decent sized properties (over 650 sq.ft.) in quality buildings and locations will in general fair well.There will always be a demand for them.
I think there are way too many tiny investor units selling for more than $700/sq.ft. that have been sold and are also lingering in developer's inventory. Those are the units that will take the biggest hit.

MICHAEL WINESTONE

Buzzer

Keep in mind that that new b-20 mortgage rules are also slowly eliminating buyers from the marketplace. Banks have really tightened up lending and its going to get worse as we move into 2013. New homebuyers are having a harder time getting qualified, which affects condo and smaller home sales, which then affects larger "move-up" home sales. It's a bit of a domino effect. The good news for sellers is that with everything going on, many of today's buyers are GOOD buyers.

ALEX KVITNITSKY

Buzzer

I would like to pin point a very important point that whats happening in the market right now is very similar to what we have seen in the past with the introduction of the HST.

With any new change that forces an additional cost on prospective buyer we're going to see a slow down in sales!!! Now take that and add the seasonal slow down, and you got the winning combo for higher than usual slowdown in sales.