What a year it’s been so far. A bit of a roller coaster ride right?
First we had a crazy high and a truly unsustainable jump in prices through the early part of the year and ever since the peak in February the market in terms of both sales and prices has been on a steady decline.
It’s super hard to predict what will happen over the coming months and from the front lines we know that the market is like the weather – unpredictable and varied just as it can be sunny in Leaside and rainy in Vaughan. We all know that the media loves profiling a gloomy outlook. Take a look at this more measured view on housing prices, interest rates and inflation from chief TD Economist Beata Caranci.
One thing we can say with certainty is that the market has SHIFTED. We expect further sales and price drops for August and while the average price in the GTA has dropped by about 24% since February, it’s really hard to paint a broad stroke over the entire area. Certain areas in the core are holding their values nicely while others not so much. We even know that there are areas such as Oakville which have already hit a bottom and are now on a slight uptick in terms of prices.
If there’s one lesson here it is this. Don’t wait for the bottom if you plan on buying. It’s pretty much impossible to time the market. So if you’re inclined to buy – your finances are in order and it’s a logical move for you i.e. you’ve outgrown your current home, a baby is on the way, you’ve just received an inheritance from Uncle Bill or have taken a job offer in another city or town then it’s time for you to sell and/or buy. If you’re an investor, buy now especially if you’re looking at condos. The condo market is holding up nicely and rents are soaring. It’s always important to look at your local market and/or area to see how it’s performing. I can help you analyze this.
Sellers are finally starting to be realistic in terms of their pricing and are living in the here and now rather in the past. We still have very low inventory levels and as long as this holds which we feel it will, then don’t be surprised if we start seeing more activity in September in terms of volume of sales and steadying prices.
Markets go up and down and shift sideways too. This is true whether we’re talking the equities market or the real estate market. This is just the nature of any market. The real estate market will unquestionably stabilize and gain traction again. It’s just a matter of “when”, not “if”.
So keep the faith, buckle up and remember that we will get through this. Focus on gratitude for what you have and be realistic in terms of your goals. If the time is now for you to make a move, then seize the moment!