The forecast for the fall market in the GTA is positive despite a drop in sales over the summer months compared to the highs of the spring market. In an early September interview with Tim Syrianos, President of the Toronto Real Estate Board and Jason Mercer on News Talk 1010’s “Ask the Experts”, both noted that indicators were showing sellers and buyers waiting to see what would happen after the slowdown in sales over the summer months.
Following the introduction of the Ontario Fair Housing Plan in April 2017 there was a noticeable dip in the market over the summer. Buyers and sellers were staying on the sidelines to see whether the Toronto market would have a downturn or would react as the Vancouver market did, with an initial slow down followed by a return to strong sales and an increase in sale prices. While it is true that sales in Toronto were down over the summer but supply was down also. It seems that there were psychological factors at play. Given that there are a strong underlying market indicators in Toronto, prices should stay strong. Employment is good and the economic situation is strong even taking interest changes into consideration. A survey carried out by Ipsos Consumer Research in May 2017, showed that the number of people poised to enter into the real estate market over the following twelve months was higher than expected. All of which indicates that those buyers and sellers are still out there just waiting for the right moment to make their move back into the market.
Recent media reports have indicated that buyers are walking away from signed deals in droves. While this may have happened from time to time it’s not at all easy to do. There may be many reasons for that happening that have nothing to do with changing market conditions. The most likely being that the buyers own personal financial circumstances have changed since the date that they got the approval for a mortgage and they can no longer qualify. While situations like this attract worrisome newspaper headlines, it is worth remembering that this is still a very rare occurrence and many brokerages have not seen it happen at all in the last six months.
Less than two months ago Jason Mercer was anticipating a move to a more balanced market with listings up and prices slightly higher compared to last year. This has indeed turned out to be the case. Within the last few weeks there has been a distinct shift and within my own office we have seen a return to multiple offers. The Fall real estate season, much like our weather, is now starting to get into its stride as both sellers and buyers are sitting up and taking notice.
If you would like more information, please contact me at 416-834-3688 or send me a message