Our Market Has Finally Balanced; Now Is The Time To Buy And Sell!
For the last few years, we’ve been very concerned about the pace of appreciation in the Greater Toronto Area. We were in what we called a Seller’s Market, where there were more buyers than homes for sale.
Seller’s markets are caused by sustained low-interest rates, high employment, high immigration, and a stable political environment.
- In January 2017, there were 5,034 new listings added to the market, and in the same month, we had 5,155 sales. January 2017 was an extreme Seller’s Market, with less than 1 Month Of Inventory.
- In January 2018, there were 11,894 new listings, and in the same month, we had 4,019 sales. With just under 3 Months Of Inventory, we consider this past January a Balanced Market.
A balanced market suits everyone better. In a Balanced Market, buyers have more inventory choose from, and more time to make an informed decision. Although prices year-over-year have dropped 4.1%, it doesn’t matter because you are buying and selling in the same market. The home you sell might be worth a little less, but the home you buy will also cost less.
It is very likely that this price stall is temporary. As homebuyers find their feet after the interest rate hikes and mortgage stress test, home sales will increase and our inventory will drop once again, pushing prices up. This is a good time to move up to your next home.
If you received a market analysis from us within the last few months, don’t stress, we have already compensated for that slight market drop.
Janette and Christo Lourantos