Toronto Buyers May Get Off Seller Rollercoaster In September

toronto buyer housing market change

This September Toronto Housing Market Shifts To Buyers

With Toronto’s CNE coming to the end on Labour Day so to is our long seller’s market.

I have felt the frustration of my buyers, as each time we found a great house it always ended in a multiple offer scenario.  The scene went as follows:

  • We find a great house and we see that the seller will only review offers on next Monday night.
  • Prior to the offer date we do our research to determine our pricing strategy.
  • An inspection is scheduled as well as a talk with our lender to determine if we can go with no conditions.
  • Offer date arrives and at 3 pm we are the only offer registered.
  • At 7pm when offers are to be presented we are now 1 of 9.
  • We put in our non-conditional offer, with a $50,000 bank draft and an offer that is $70,000 over list price.
  • Then it is the wait.
  • Finally the listing agent informs us that they took another offer which was so overpriced  that it defied logic.

However from what I have experienced over the past few months I believe we will be seeing a substantial shift in our market.

We just experienced one of the longest seller’s market, so much so that both sellers and realtors have conditioned themselves that this normal.   The Toronto housing market will be changing and you certainly want to be prepared  when it arrives.

First off, Toronto housing prices will continue hold their value – this is not me talking but the public voice of BMO, RBC, CIBC and the Bank of Canada.  What I expect we will see is a large amount of new listings (I refuse to use the word inventory as it makes it sound like I was shopping at IKEA).   Again we will see this influx most likely in the 2nd and 3rd weeks of September.

For those of realtors who have never experienced a buyer’s market they will quickly find themselves in a very alien environment. If I was buying or selling in a changed market I would certainly look for a realtor who has navigated these waters before.

Here are my thoughts in how to better adapt to the new buyer’s market.

First of all recognize that sellers will not be prepared for this changed market place.   Be patient but decisive.

As you see more homes starting to come onto the market keep a keen eye on those who have been sitting for a least 30 days.

Don’t be afraid of putting in a fair offer, but this time you are looking for the seller to counter offer.

Be open to negotiations and since you have already experienced putting in non-conditional offers then use them in bargaining.

Personally I am looking forward to a market shift as it puts greater rigor and fairness for both sellers and buyers….something long overdue in the Toronto real estate market.