There is zero doubt that Toronto’s real estate has taken a dip. Well, let’s call a spade a spade here. Toronto real estate has dropped in value and sales seemingly overnight. The height of Toronto’s market was in February 2022. Since then, the market has slowed, and buyers have decided to slow down as they await a new opportunity to snap up discounted homes and condos. The Bank of Canada’s (BoC) interest hikes, along with high inflation, have led to the end of the housing bubble in Toronto.
This year is for buyers who have long wished to purchase a home or condo in Toronto. Toronto real estate buyers have a lot to be excited about. With a dip in sales by nearly half the previous year’s numbers and values down as much as 20% in some areas (this could continue to drop in the months to come), it’s a great time to buy. There is now a selection of properties to view. You can negotiate the right price. This is the long-awaited buyer’s market.
A Great Opportunity In Toronto
As Toronto’s real estate prices continue to adjust downward, we see more condos and houses available for under $1 million. This is great news for first-time buyers and young families. Why? When a buyer purchases a property for more than $1 million, they must pay 20% for financing. If a buyer purchases a house or condo for under $1 million, they can put as little as 5% down on a property and then mortgage finance the difference. As we see more properties in Toronto drop below $1 Million, there will be a great opportunity for Toronto home buyers to get into the market!
What Buyers Must Do:
Get Pre-Approved
Get a mortgage pre-approval now! Do not wait; lock in at today’s rates, as these will likely increase as the year progresses. A great mortgage broker will reserve your rates for as many as 120 days. It’s a great move. Also, getting pre-approved gives you clarity on your budget. This will allow you to narrow in on what you can afford and allow you to buy with confidence!
Start Your Search Now!
Start your real estate search today. Do not wait. Why? You never know when you will see what you love. Also, you do not know when the market will begin to increase again (more on this below.) We are hearing a lot of Toronto buyers say that they will wait until the end of the year to buy. This may or may now work: 1) there are fewer properties to see at that time of the year; 2) the market may begin to rebound; 3) DO NOT do what other buyers do – herd mentality doesn’t lead to success – in our experience, it drives market prices up.
➤ Every good investment needs a well-planned strategy. Start preparing with:
- Are Condos A Good Investment?
- The Most Undervalued Condos In Toronto
- Condo vs House Investment
- Why Parents Should Invest In Toronto Condos For Their Children
- Millennial Home Buying Trends
Do Not Try To Time The Market!
Timing the market never works. If you try to time the market, you will miss the boat. Be pragmatic; you are gifted with a time machine that will allow you to go back to purchase at the previous year’s pricing! Don’t overthink it. If you like a property, make an offer. Snap it up. No one can predict a marketplace. There are too many factors at play. Remember that Toronto’s real estate house prices have increased dramatically since the second world war. Those who purchased ten years ago have nearly tripled their money. Remember that tripling has let off some, giving buyers a great opportunity. Keep in mind that the 2017 real estate slowdown didn’t last long. We cannot know when sales and values will begin to pick up again!
Investment Properties
This is the year you can afford to purchase an investment house or condo. This is a great time to invest. The increase in variable rates makes those who did not budget well uncomfortable. Buying up some of these properties will bode well in the long term. Also, note that the rental rates are increasing. The reason is that the demand for rentals is higher now that the interest rates have increased. It has pushed rate-sensitive would-be-buyers to the sidelines for now. We also suspect the BoC will somewhat lower rates in the coming year once inflation is controlled. They seem to be intentionally overshooting the mark to calm inflation. Buyers will return when inflation is brought within a reasonable range and interest rates lower. Either way, this is an ideal time to purchase an investment property in Toronto.
