The Toronto Market Is Returning to Normal

What’s happening in our Toronto real estate market? For a while it was red-hot, but now it’s simmered down to a more typical market. Here are the two main reasons why:

1. Increased inventory. We began the year with an imbalance between buyers and homes for sale. We had just 3,000 houses for sale on the Toronto real estate board, which has ballooned to over 13,000 today. So we now have a better balance between buyers and sellers, which means buyers have more homes to choose from, and the market is less hectic.

"Most of the COVID-19 market frenzy is over."

2. Rising interest rates. We recently saw the highest one-time rate hike in 20 years. Buyers now have to spend more for the same homes, which makes things harder. Any time buyers find it less affordable and more difficult to qualify for homes, the less money they can offer. 

Despite the changing market, sellers are still getting much more for their homes than they were before the pandemic, and in some markets, they’re getting more than at this time last year. Buyers now have a chance to get into the market and not have as much competition as in the last couple of years. Most of the COVID-19 market frenzy is over. Prices escalating out of control and extremely-high bids are calming into a more normalized market. 

The Bank of Canada intends to raise interest rates at least once, if not twice, more this year. When we know they’ve stopped increasing rates, buyers’ confidence will improve, and they’ll come out in larger numbers. 

If you’d like more information about our current market or where your home fits into it, give us a call or visit our website. We’d love to chat with you about your plans and answer any questions you have.