The Greater Toronto Area Real Estate Market is Changing

Many people are asking me my thoughts on the current market. Whether it is from current clients, friends, family members or potential clients, a lot of people are asking me what’s going on with the Greater Toronto Area real estate market.

The Greater Toronto Area Real Estate Market is Changing

The truth is, the real estate market has definitely changed relative to last year. In 2017, the market was very active with multiple offers and quite a few bully offers. Prices were rising quite a bit in all parts of the GTA, including Mississauga and Oakville. It was a strong seller’s market.

So far in 2018, the real estate market has been more balanced. I am seeing fewer multiple offers… but I am still seeing some. (And we are still seeing prices for some homes going over asking.) The current market is giving the majority of buyers time to do their due diligence prior to committing to their purchase. For example, buyers are doing property inspections, getting their finances in order and, in general, taking a moment before committing to such a large purchase.

The supply of homes available for sale continued to be an issue in May. New listings were down by 26.2 per cent. The fact that new listings were down by more than sales, in comparison to last year, means that competition has increased between buyers.

Because there continues to be competition amongst buyers for some homes, it still remains a good time to sell. There are plenty of potential buyers in the market right now who wish to purchase. This is not the time to overprice your home, or else it may sit on the market for a while.

“Market conditions are becoming tighter in the Greater Toronto Area and this will provide support for home prices as we move through the second half of 2018 and into 2019. There are emerging indicators pointing toward increased competition between buyers, which generally leads to stronger price growth. In the City of Toronto, for example, average selling prices were at or above average listing prices for all major home types in May,” said Jason Mercer, TREB’s Director of Market Analysis.

It is my prediction that signs are pointing to a balanced market for the remainder of the year.

If you are thinking of buying or selling a home, please contact me at 905-502-1500. I would welcome the opportunity to discuss the real estate market with you.