As the “Dog Days of Summer” wind down, what is typically slow season for real estate has been extra sluggish.
The 2022 housing market has been volatile with extreme highs and lows, now coming off 3 straight month’s of decline in prices, after record months of growth. In July the prices fell -2.6% from June and home values have declined by more than $400,000 on average (-24%) from the market peak in February (with the biggest declines in detached homes around the GTA.)
Interest rate hikes have had a cooling effect on the market as buyers have taken a step back. This is a big shift from the red-hot demand we saw at the beginning of the year. The number of sales (transactions) dropped a whopping -47.4% from the previous July.
This video from 2017 demonstrated the shifting market, similar to today
What is a Buyer’s Market?
A buyer’s market, by definition, occurs when the number of homes on the market well surpasses the number of buyers who are purchasing. As a result, these buyers are in a more advantageous situation than sellers, with choice and negotiation power. In other words, it comes about from a change in the market’s supply and demand.
You can see by this graphic where the Toronto market (as a whole) is heading. Looking at individual neighbourhoods, some are already in a perceived buyer’s markets while other more in demand neighbourhoods are entering more of a balanced market.
One thing is for sure, the seller’s market we have become accustomed to has retreated, for now.
What does this all mean?
Simply put, there are more homes for sale right now and less buyers who are purchasing. This presents a window of opportunity for buyers that hasn’t been seen in quite some time (although something to keep in mind is that the higher interest rates may affect affordability).
Is now the time to buy?
The answer to this question depends greatly on your situation. While we don’t have a crystal ball, we can guide and advise you according to your individual situation, your wants and needs. We have included our Buyer’s Guide in this email that lays out the 10 basic steps to purchasing a property, along with answers to some of the most frequently asked questions.
Click on the image to download your free Buyer's Guide
We know this guide covers the basics and there are many details and nuance that isn’t included. If you have further questions, feel free to reach out. We’re always happy to help.
Jon & Cheryl