Ajax

Brock

Clarington

Oshawa

Pickering

Scugog

Uxbridge

Whitby

Toronto

Aurora

East Gwillimbury

Georgina

King

Newmarket

Richmond Hill

Vaughan

Whitchurch-Stouffville

Markham

Oakville

Milton

Halton Hills

Burlington

Mississauga

Brampton

Caledon

Hamilton

Typically, the spring is when a wave of new listings flood the GTA real estate market. After all, it&rsquo;s the annual release of pent-up anticipation following a cold, dreadful winter. Sellers, keen on showcasing their homes when the garden is about to bloom, are capitalizing on ambitious buyers just itching to get back out there.But this spring is different. After eight months of inaction following a series of ambitious interest rate hikes &mdash; you&rsquo;d think sellers would be flooding the market, dying to get their homes up for sale. Although there has been an uptick in new listings, it&rsquo;s nothing like what we traditionally see during the season.<h2>New listings plummet to lowest in two years</h2>This spring, the GTA housing market saw its biggest drop in new listings in two years. In March 2021, for instance, 22,626 houses and condos came up for sale. It was a surge of new inventory, typical of a spring market, but also following a year of pandemic restrictions. The following March was no different with 19,969 new listings &mdash; coinciding with a peak in overall property prices.But when the Bank of Canada embarked on its journey to raise interest rates last June, sales dwindled as did real estate values. By the end of 2022, condo transactions had dropped by 45% and freeholds by 56%. Following one of the most aggressive rate hikes in Canadian history, the central bank finally signalled a conditional pause on increases after the latest one in January.With optimism in the air, many realtors had expected a surge of sellers to emerge this spring with fresh properties for an eager throng of buyers. But <a href="strata.ca" target="_blank">Strata.ca</a> data shows new listings are nowhere near the levels we saw in years past.In March, only 11,200 properties were listed &mdash; a 44% drop from one year prior. Not only has this inventory problem resulted in a more competitive market, but it&rsquo;s one of the main factors keeping GTA real estate prices propped up. Although property values took a beating during the back-half of 2022, it appears they hit &lsquo;rock bottom&rsquo; in January and are trending upwards ever since. Right now, the average price of a house is just shy of $1.4M, and a typical condo is selling for $751,000. That&rsquo;s a 2.8% and 6% increase respectively in just three months.<h2>Must sell &lsquo;at a number that makes sense&rsquo;</h2>Lower inventory levels would imply many sellers are hesitant to list at this time. But those who do list may end up with favourable outcomes, especially if they&rsquo;re trying to sell a freehold. Houses are typically selling within 14 days with buyers, on average, paying 7% above the listing price. Condos, meanwhile, are selling within 22 days at an average of 2% above list.Cliff Liu, a broker at Strata, says the inventory data for new condo listings is in line with what he&rsquo;s observed on the ground. &ldquo;Condo owners looking to upgrade to a house are in a tricky dilemma,&rdquo; he explains. &ldquo;With competition so fierce for freeholds, they must sell their condo at a number that makes sense.&rdquo;&ldquo;There&rsquo;s also this feeling of uncertainty, given the stigma that higher interest rates have caused,&rdquo; adds Strata agent, Cyrus Ghazvini. &ldquo;There&rsquo;s cold feet from both buyers and sellers because everyone is still adapting to these new rates.&rdquo;A buyer originally pre-approved for $1.8 million is now only approved for, let&rsquo;s say, $1.2 million. And that consequently changes their expectations. &ldquo;But if they must move, they&rsquo;ll utilize whatever is given to them to make that happen,&rdquo; Ghazvini explains.<h2>Inventory crunch fuels standstill</h2>Higher interest rates may have caused a standoff among buyers and sellers. But the GTA&rsquo;s listing shortage, and thus a lack of options, has triggered a standstill within households unsure of their next move.&ldquo;I have a pair of clients who want to downsize, but are reluctant to put their house on the market,&rdquo; says Liu, who explains that the couple wants a decently-sized condo in the same neighbourhood that they can see themselves living in for the next 20 years. &ldquo;They just aren&rsquo;t seeing enough listings that fit their criteria for them to feel comfortable putting their house up for sale.&rdquo; So in turn, that&rsquo;s one less house hitting the market this spring.&ldquo;Multiply this scenario among other households, and you run into the kind of inventory crunch we have today,&rdquo; says Liu.&ldquo;Despite this problem,&rdquo; adds Ghazvini, &ldquo;many buyers still have this perception that they can get &lsquo;deals&rsquo;.&rdquo; He often has to explain to clients that &ldquo;the beautiful corner unit they want in a reputable condo and desirable neighbourhood will always sell well.&rdquo; And as long as there are more buyers than available listings, he says, the chances of a deal become slim.So what does this low inventory, coupled with higher interest rates, mean for GTA real estate? Well for starters, the terrain is ripe for a rental market that&rsquo;s about to get even hotter.&ldquo;Despite bigger mortgage payments and shifting lifestyles, sellers who can stay afloat may hold out a while longer without having to list,&rdquo; predicts Liu. &ldquo;And many buyers, who either can&rsquo;t afford to purchase or are discouraged by the lack of properties, will likely start looking at rentals.&rdquo;Fortunately, rental inventory compared to last year is actually up by 15%.

Springtime Scarcity: GTA Property Listings Plunge By Nearly 45%

In a vast city like Toronto, it&rsquo;s nearly impossible to understand the characteristics and nuances of every neighbourhood. But dig deep enough and you&rsquo;ll uncover some hidden gems, especially when it comes to those neighbourhoods where you can get the best value for your money.Right now, <a href="strata.ca">Strata.ca</a> data shows the average price of a house in Toronto is just over $1.5M. And for condos, it&rsquo;s $742,300 or roughly $904 per square foot (PSF). Although real estate values bottomed out in December after a series of interest rate hikes &mdash; prices are creeping back up in time for the spring market, following eight months of pent-up demand.We&rsquo;ve uncovered Toronto&rsquo;s most underrated neighbourhoods, where your real estate dollars can stretch the furthest. After all, you may want to consider these areas before the rest of the city discovers their potential, too!<h2>Birch Cliff-Cliffside</h2>Price Compared To City Average<ul><li>Houses: 30% Cheaper</li><li>Condos: 5% Cheaper</li></ul>Located along Toronto&rsquo;s southern shoreline &mdash; this <a href="https://strata.ca/toronto/scarborough">Scarborough</a> neighbourhood is known for its charming, family-friendly community and close proximity to the lake. Gentrification is happening quickly, especially along Kingston Road, as trendier shops and boutique condos creep further east from <a href="https://strata.ca/toronto/east-end/the-beaches">The Beach</a>. Some may be worried about transportation in <a href="https://strata.ca/toronto/scarborough/birch-cliff-cliffside">Birch Cliff-Cliffside</a>. But for those who drive, the downtown core is easily accessible by simply travelling west along Kingston Road until it connects to Dundas.The reason why real estate prices might be lower in this area is simply due to a lack of awareness. But note that houses here are still in demand among those &lsquo;in-the-know&rsquo;, meaning you may face some competition from both traditional buyers and investors. On average, people are paying about 3% above the asking price.<a href="https://strata.ca/toronto/1247-kingston-road-m1n1p4" target="_blank">1247 Kingston Rd</a> | $1,270,000<a href="https://strata.ca/toronto/145-kalmar-avenue-south-m1n3g6" target="_blank">145 Kalmar Ave</a> | $769,900<a href="https://strata.ca/toronto/22-east-haven-dr-haven-on-the-bluffs-condos/unit-925" target="_blank">22 East Haven Dr, Unit 925</a> | $627,700<h2>Richview</h2>Price Compared To City Average<ul><li>Houses: 7% Cheaper</li><li>Condos: 32% Cheaper</li></ul>This <a href="https://strata.ca/toronto/etobicoke" target="_blank">Etobicoke</a> neighbourhood may not be as popular as <a href="https://strata.ca/toronto/etobicoke/the-kingsway" target="_blank">The Kingsway</a> or <a href="https://strata.ca/toronto/etobicoke/mimico" target="_blank">Mimico</a>. But for those willing to venture further north, Richview offers a peaceful environment surrounded by tons of greenspace. The area is becoming increasingly popular for both young families and elderly couples, looking for a good mix of urban and suburban characteristics.We can reasonably expect real estate values in <a href="https://strata.ca/toronto/etobicoke/richview" target="_blank">Richview</a> to inch closer to the city&rsquo;s average, given the neighbourhood&rsquo;s close proximity to major highways including the 401 and 427. There have been many changes to this area in recent years, including new condos, shopping malls and some infrastructure improvements. It&rsquo;s hard to say whether these changes have furthered gentrification. But one thing&rsquo;s for certain &mdash; there are many homes here worth considering, given Richview&rsquo;s lower-than-average property values.<a href="https://strata.ca/toronto/130-142-widdicombe-hill-blvd-widdicombe-eglinton-townhomes/1-unit-310" target="_blank">132 Widdicombe Hill Blvd, Unit 310</a> | $699,900<a href="https://strata.ca/toronto/389-the-westway-way-m9r0b4/unit-1" target="_blank">389 The Westway, Unit 1</a> | $949,900<a href="https://strata.ca/toronto/15-sabrina-drive-m9r2j4" target="_blank">15 Sabrina Dr</a> | $1,479,999<h2>Caledonia-Fairbank</h2>Price Compared To City Average<ul><li>Houses: 30% Cheaper</li><li>Condos: N/A</li></ul>If there&rsquo;s any reason to consider this <a href="https://strata.ca/toronto/york-crosstown" target="_blank">York-Crosstown</a> neighbourhood, it&rsquo;s the potential that could come from the new Eglinton Crosstown LRT. After all, Strata.ca data has shown that properties along this new transit system have <a href="https://strata.ca/blog/condo-values-explode-along-eglinton-crosstown-lrt-by-up-to-135" target="_blank">surged in value</a> by up to 135%.Despite that, real estate prices near Caledonia station, and the wider neighbourhood, are still cheaper than the city&rsquo;s average. Also, this is where the new LRT and the GO Barrie line intersect. So there&rsquo;s potential for this area to become a prominent transportation hub, bringing more development to the general community.If you&rsquo;re looking for a condo, however, <a href="https://strata.ca/toronto/york-crosstown/caledonia-fairbank" target="_blank">Caledonia-Fairbank</a> isn&rsquo;t the place for you as most of the options available are houses and townhomes.<a href="https://strata.ca/toronto/262-nairn-avenue-m6e4h6" target="_blank">262 Nairn Ave</a> | $1,499,900<a href="https://strata.ca/toronto/328-gilbert-avenue-m6e4w7" target="_blank">328 Gilbert Ave</a> | $1,498,888<h2>Flemingdon Park</h2>Price Compared To City Average<ul><li>Houses: N/A</li><li>Condos: 26% Cheaper</li></ul><a href="https://strata.ca/toronto/north-york/flemingdon-park" target="_blank">Flemingdon Park</a>, known for its high-rise rentals, is starting to see more development take shape. Anyone looking for a condominium should consider this <a href="https://strata.ca/toronto/north-york" target="_blank">North York</a> neighbourhood as real estate values here have not yet surged like they have in other parts of the city. For example, it&rsquo;s still possible to get a well-sized 3-bedroom unit for under $700,000.Although Flemingdon Park still has a long way to go for gentrification, its location is quite convenient. Situated near the Don Valley Parkway, drivers can easily get downtown in under 15 minutes. For those taking public transit, Don Mills station is within walking distance from various points within the neighbourhood.Detached homes are not prevalent in Flemingdon Park. So if you&rsquo;re looking for a freehold, you may have to consider the other neighbourhoods mentioned above.<a href="https://strata.ca/toronto/20-ferrand-dr-2-32-sonic-way-sonic-and-super-sonic-condos/4-unit-2420" target="_blank">6 Sonic Way, Unit N2408</a> | $669,888<a href="https://strata.ca/toronto/5-shady-golfway-5-shady-golfway-condos/unit-507" target="_blank">5 Shady Gfwy, Unit 507</a> | $679,900<a href="https://strata.ca/toronto/215-wynford-dr-the-palisades-condos/unit-2901" target="_blank">215 Wynford Dr, PH3001</a> | $1,035,000<h2>Eringate-Centennial-West Deane</h2>Price Compared To City Average<ul><li>Houses: 25% Cheaper</li><li>Condos: 7% Cheaper</li></ul>Spanning quite a large stretch of Toronto&rsquo;s northwest corner, this Etobicoke neighbourhood includes several communities where property values are still below the city&rsquo;s average. Being a well-established area, you&rsquo;ll find a good mix of single-family homes, as well as townhouses and low-rise buildings. One of the biggest advantages of living in <a href="https://strata.ca/toronto/etobicoke/eringate-centennial-west-deane" target="_blank">Eringate</a> is that residents are surrounded by plenty of greenspace, thanks to both West Deane and Centennial parks.Public transit isn&rsquo;t as easily accessible, which could explain why real estate is relatively cheaper here. But for those who drive, Eringate&rsquo;s close proximity to the 401 and 427 could be considered a big draw.<a href="https://strata.ca/toronto/714-the-west-mall-the-buckingham-condos/unit-1201" target="_blank">714 The West Mall N, Unit 1201</a> | $709,900<a href="https://strata.ca/toronto/26-hardwick-court-m9c4g6" target="_blank">26 Hardwick Crt</a> | $788,800<a href="https://strata.ca/toronto/24-triburnham-place-m9c3p3" target="_blank">24 Triburnham Pl</a> | $1,188,000

Toronto’s Most Underrated Neighbourhoods With Best Value for Your Money

The GTA real estate market is picking up steam as we head into spring. But despite a month-over-month increase in property values, the market is still dealing with the aftermath of eight consecutive interest rate hikes and what that could mean for the year ahead.For buyers, this is a chance to consider homes that may have been out of reach just one year ago. So check out these <a href="https://strata.ca/toronto?center" target="_blank">Toronto houses for sale</a> that are all under $800,000.<a href="https://strata.ca/mls/e5954799" target="_blank">32 Birkdale Road</a> | $799,000 | Scarborough<picture><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/Birkdale 1-600.jpeg" media="(max-width: 600px)"/><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/Birkdale 1.jpeg"/><img src="https://media.strata.ca/article-images/179/Birkdale 1.jpeg" alt="null"/></picture><picture><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/Birkdale 2-600.jpeg" media="(max-width: 600px)"/><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/Birkdale 2.jpeg"/><img src="https://media.strata.ca/article-images/179/Birkdale 2.jpeg" alt="null"/></picture>Listing Details<ul><li>3 Beds + Den, 2 Baths</li><li>Semi-Detached</li><li>Neighbourhood: <a href="https://strata.ca/toronto/scarborough/bendale?center" target="_blank">Bendale</a></li></ul>This bright and sunny <a href="https://strata.ca/toronto/scarborough?center" target="_blank">Scarborough</a> home features a large open-concept living room, luxurious hardwood floors, and pot lights throughout. The eat-in kitchen not only features a smart layout and luxurious cabinetry, but it also overlooks the private backyard.<a href="https://strata.ca/toronto/7-rectory-road-m9n1p8" target="_blank">7 Rectory Road</a> | $779,000 | Toronto<picture><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/7 Rectory 1-600.jpeg" media="(max-width: 600px)"/><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/7 Rectory 1.jpeg"/><img src="https://media.strata.ca/article-images/179/7 Rectory 1.jpeg" alt="null"/></picture><picture><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/7 Rectory 2-600.jpeg" media="(max-width: 600px)"/><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/7 Rectory 2.jpeg"/><img src="https://media.strata.ca/article-images/179/7 Rectory 2.jpeg" alt="null"/></picture>Listing Details<ul><li>2 Beds, 1 Bath</li><li>Semi-Detached</li><li>Neighbourhood: <a href="https://strata.ca/toronto/york-crosstown/weston?center" target="_blank">Weston/York Crosstown</a></li></ul>This Weston Village home is full of upgrades, including new floors, new windows, plus a new roof. Considered a great condo alternative, this property features an eat-in kitchen with a smart layout and stainless steel appliances. There&rsquo;s also a walk-out deck and private fenced-in yard &mdash; perfect for entertaining on those warm summer nights.<a href="https://strata.ca/mls/e5919843" target="_blank">114 Dawes Road</a> | $775,000 | East York<picture><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/Dawes 1-600.jpeg" media="(max-width: 600px)"/><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/Dawes 1.jpeg"/><img src="https://media.strata.ca/article-images/179/Dawes 1.jpeg" alt="null"/></picture><picture><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/Dawes 2-600.jpeg" media="(max-width: 600px)"/><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/Dawes 2.jpeg"/><img src="https://media.strata.ca/article-images/179/Dawes 2.jpeg" alt="null"/></picture>Listing Details<ul><li>3 Beds + Den, 2 Baths</li><li>Semi-Detached</li><li>Neighbourhood: <a href="https://strata.ca/toronto/east-york/old-east-york?center" target="_blank">Old East York</a></li></ul>Located in the heart of <a href="https://strata.ca/toronto/east-york?center" target="_blank">East York</a>, this 3-bedroom semi is the perfect starter home for a young family or working couple. The enclosed porch is a great play area for the kids, or a relaxing space to enjoy morning coffee rain or shine. The main living area flows nicely into the kitchen, which features a convenient breakfast bar and plenty of cupboard space.<a href="https://strata.ca/mls/n5941851" target="_blank">253 Axminster Drive</a> | $799,000 | Richmond Hill<picture><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/Axminster 1-600.jpeg" media="(max-width: 600px)"/><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/Axminster 1.jpeg"/><img src="https://media.strata.ca/article-images/179/Axminster 1.jpeg" alt="null"/></picture><picture><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/Axminster 2-600.jpeg" media="(max-width: 600px)"/><source type="image/jpeg" srcSet="https://media.strata.ca/article-images/179/Axminster 2.jpeg"/><img src="https://media.strata.ca/article-images/179/Axminster 2.jpeg" alt="null"/></picture>Listing Details<ul><li>3 Beds, 2 Baths</li><li>Semi-Detached</li><li>Neighbourhood: <a href="https://strata.ca/richmond-hill/crosby?center" target="_blank">Crosby, Richmond Hill</a></li></ul>If you&rsquo;re looking for value outside the city, this 3-bedroom semi in <a href="https://strata.ca/richmond-hill?center" target="_blank">Richmond Hill</a> might be worth considering. Situated on a great lot, the property features a renovated kitchen, three spacious bedrooms, and a generous backyard. This home is also located in a great school district, with easy access to neighbourhood amenities and major highways.

Houses You Can Buy For Under $800K

After several months of declining real estate values, the GTA witnessed a notable turnaround in February. Compared to the previous month, prices increased by about 2.7% &mdash; leaving many of us wondering if we&rsquo;re in for a comeback.Despite a 50% drop in sales year-over-year, demand is starting to outpace supply. This is especially true as spring approaches, and that&rsquo;s being reflected in today&rsquo;s rising prices. In February, condos sold at an average price of $746,563 or $805 per square foot (PSF). That&rsquo;s a $23 increase PSF compared to January. Houses, meanwhile, sold for an average price of $1,346,120 &mdash; notably higher than the previous month of $1,309,200.<h1>Buyers</h1>While some buyers may be waiting for prices to &lsquo;bottom out&rsquo;, this latest trend suggests the bottom may have already passed. And if Canada&rsquo;s central bank decides to pause interest rates after a series of gut-punching hikes &mdash; it may encourage renewed confidence, with buyers flooding the spring market.<h1>Sellers</h1>Sellers, alternatively, are moving into more balanced territory after months of waning demand. We&rsquo;re heading into prime listing season. But sellers must be careful with their pricing strategies. Too many people are taking risks by setting offer dates, in the hopes of triggering a bidding war. This plan can only work with the right approach, and when applied to the right property. However, it has the potential to backfire in softer markets like the one we&rsquo;re in.But sellers don&rsquo;t need to be discouraged. Well-priced condos, for example, in desirable neighbourhoods are selling within an average of 26 days. And when it comes to houses, the market is bouncing back in their favour, too. Right now, buyers are paying an average of 3% above the asking price.<h1>Renters</h1>If property values are, in fact, on the rise again &mdash; we could see more buyers being forced to rent. This means existing renters could face competition during the months ahead. Tenants are paying an average of $2,804 per month. But we can expect that to increase with renewed demand this April. That&rsquo;s why renters who are flexible on occupancy dates should try and secure a lease before the spring rush sets in.

GTA Real Estate Prices Went Up Nearly 3% In February

The term &lsquo;buyer&rsquo;s market&rsquo; has been thrown around for months now despite being technically inaccurate. After all, <a href="https://trreb.ca/files/market-stats/market-watch/mw2301.pdf" target="_blank">only one of Toronto&rsquo;s 36 MLS districts</a> has fallen below the 40-percent sales-to-new-listings ratio (SNLR) threshold that denotes a buyer&rsquo;s market. (SNLR is calculated by dividing the number of homes sold by the number of new listings.)Besides the affluent C12 district, which is made up of the York Mills, St. Andrew-Windfields, Bridle Path, Sunnybrook, and York Mills West neighbourhoods, every other district&rsquo;s SNLR sits between 40 and 60 percent, which is typically viewed as &lsquo;balanced&rsquo; market territory. Across the GTA, the SNLR stood at 47.6 percent in January.That said, a buyer&rsquo;s market can be both relative and subjective. In an overheated region like the GTA, where the SNLR was a red-hot <a href="https://trreb.ca/files/market-stats/market-watch/mw2201.pdf" target="_blank">72.9 percent</a> just one year ago, it is understandable that many market watchers are proclaiming that the tide has turned in favour of sellers.That&rsquo;s another beef I have with all the &lsquo;buyer&rsquo;s market&rsquo; chatter: By employing the right strategies, both buyers and sellers can benefit from what may be best described as a market in transition.Here, I join Strata agents in sharing ways to do exactly that.Sam Massoudi | Realtor, Strata.caFor buyers: &ldquo;Now that the feeling of urgency has faded, I really enjoy seeing my clients being more meticulous in their search. We can't be certain how long this mild buyer's market will persist, so it's key for buyers to be savvy with their timing, prioritize their needs, and have a clear idea of what they want. Otherwise, they may be swept away and miss some properties that would be great fits for them.&rdquo;For sellers: &ldquo;For the same reasons, I think sellers will have to make sure they're listing their property as flawlessly as they can, because they are now dealing with much pickier buyers. It's not the market to be listing with dirty walls or loose cabinet doors. If there are any minor repairs or paint jobs needed, get them done before listing.&rdquo;Jenelle Tremblett | Realtor, Strata.caFor buyers: &ldquo;Add the conditions you always wanted to add, especially the financing condition for peace of mind. Now is your time! In a seller's market we rarely add these, but at this point &mdash; it won't really affect your offer. If your financing is good and your realtor knows that, they will convey this to the listing agent.Meanwhile, don't hold off too long. A buyer&rsquo;s market can quickly turn around. For my clients now, the market feels unpredictable. I've seen houses listed for $1.4 million that end up selling for $1.2 million and the comparables don't even justify it. Then I see other houses listed for $1.8 million but actually want $2 million. Like I said, it's not as predictable. If there is a house you like, know that you can&rsquo;t negotiate until something is on paper. So shoot your shot, and understand the seller's motivations and timelines.&rdquo;For sellers: &ldquo;Get your home staged. Buyers rarely look at the &quot;bones&quot; of a place unless they're experienced in flipping houses. But they do need to envision a beautiful home. If you have tenants, wait to stage the place until it's vacant. I've had many clients visit properties that fit their criteria &mdash; but then turn it down because the place didn't feel warm and inviting.If you&rsquo;re not getting the price you want and you don't have to sell, put it up for rent for a year. The market may come back in your favour the year after. And if this is your next strategy, let prospective tenants know so there are no surprises.&rdquo;My two centsFor buyers: Before your search begins in earnest, it&rsquo;s a good idea to get pre-approved for a mortgage so you know how much home you can afford.Building on Sam&rsquo;s point about knowing what you want, I recommend seeing as many properties as possible before making an offer. In addition to ensuring you find your ideal home, knowing what's available can allow you to negotiate a better price.One of the best ways to build this knowledge is to analyze comparable properties and monitor days on the market. You will have more bargaining power if a home has been on the market for a longer period of time. Real estate professionals are trained to perform these kinds of assessments.When the time comes to make an offer, make sure it includes a significant deposit. That way you can move quickly on an attractively priced home. Other ways to improve the chances of a lower-than-usual offer are to be flexible with your move-in date.For sellers: Ensure your home is competitive by pricing it to sell. This can be achieved by surveying similar homes on the market &mdash; again, this is what real estate pros are all about.Then comes marketing. This can include attractive profiles on various listing websites, print and social media materials with key selling points and high-quality photos of your home, and even ads in newspapers, magazines and cyberspace.Other ways to make a home more attractive to buyers include:<ul><li>Making sure it is ready to be shown at all times (clean, declutter and de-personalize the space)</li><li>Using a professional home stager who can help show off its best features</li><li>Offering an extended closing date</li></ul>

Is The GTA a Buyer’s Market? Maybe. Are There Ways For Both Buyers and Sellers To Prosper? Definitely. 

Despite a market still coming to terms with interest rate levels not seen in 22 years, the GTA condo sector still saw a surge of new listings hit the market this past month. Despite softening demand, people are transacting &mdash; albeit much less so than the previous year. At Strata, it&rsquo;s our view that many of today&rsquo;s sales are being driven by circumstance. Whether it&rsquo;s a failed marriage, new job, or a baby on the way, those who need to move are the ones driving the market.Meanwhile, there are buyers who don&rsquo;t necessarily need to purchase right now. But they do recognize that this is a narrow opportunity to secure a property with much less competition. After all, current conditions are still favouring buyers. Condos, on average, are selling 1.7% below the asking price.Some Strata agents don&rsquo;t expect this trend to last much longer. As spring approaches, they&rsquo;re predicting a surge of buyers following months of pent-up demand. Admittedly, we can&rsquo;t point to any data that supports this. However, many of our buyer clients are saying the same thing: &ldquo;We&rsquo;re waiting until the spring.&rdquo;After 11 months of declining values, GTA condo prices may have hit a plateau. The month of January settled at $769 per square foot (PSF), nearly identical to December.In this landscape, sellers will need a solid pricing strategy, plus a lot of patience. Properties are sitting for roughly 33 days; a big contrast from just 9 a year ago. But if you need to sell, don&rsquo;t be disheartened. The city&rsquo;s infamous housing shortage could be to your benefit. Overall inventory has been declining since last summer, which tells us that buyers are actually consuming much of that supply.As for the GTA rental market, prices could be on the rebound. In December, we saw the average lease dip to $2,744 per month. But January ended slightly higher at $2,776. If you&rsquo;re easy on occupancy dates, try to secure a cheaper lease before the spring. Prices will likely increase towards April as students, working professionals, and many families look to make a move.

Who’s Bringing Product To The Market These Days?

If there was any doubt the GTA has become a buyer&rsquo;s market for residential real estate, that doubt may be diminishing further. The Bank of Canada has announced yet another interest rate hike, this time by 25-basis points, with the overnight rate now sitting at 4.50%. Many economists had been predicting an increase double that. And this rather 'modest' jump could be a sign that the central bank believes things are trending in the right direction.However, consider that the sale-to-list price ratio turned negative in July after an 18-month positive run, and has dipped every month since, bottoming out at minus-2 percent in January. To be clear, this means that the average buyer is paying 2-percent less than the asking price on a property. At this time last year, buyers were paying nearly 15 percent more. Now that&rsquo;s what you&rsquo;d call a market swing! However, while buyers have the advantage, they aren&rsquo;t dominating the market the way sellers were at the same time last year.Despite that, there is some good news for sellers. For one thing, inflation dipped from 6.8 percent in November to 6.3 percent in December, which signals that the worst may be behind us, and that further rate hikes may not be on the horizon. Time will tell.But for buyers, telling them &ldquo;it&rsquo;s a good time to buy&rdquo; is extremely simplistic advice. Here, three Strata agents offer their observations and insights on the current state of the market.Milan Mitrovic | Realtor, Strata.ca&ldquo;The majority of buyers who were on the fringe of being able to afford a new home with a mortgage have declined drastically over the past few months. From my discussions with a number of clients, many are waiting until 2024 to see what&rsquo;s going to happen with housing prices as well as interest rates.&rdquo;&ldquo;The majority of active buyers are people who are cash-heavy, and primarily looking to purchase investment properties. These people know that real estate should not be viewed as a short-term investment.&rdquo;&ldquo;This is the ideal time to buy if you are cash-heavy, as prices are relatively low compared to previous years, while at the same time, rent is at an all-time high.&rdquo;Apurva Mudliar | Realtor, Strata.ca&ldquo;In my circle, I'm seeing that people are motivated to close on deals because they have locked-in mortgage rates from 2022. Once the BoC&rsquo;s rate increases stop, the market could potentially bounce back. This is why some people want to take advantage of their locked-in rates and benefit from lower property prices today.&rdquo;Osman Omaid | Realtor, Strata.ca&ldquo;This interest hike may curb demand just long enough to offer one last solid window to get into the market, without a ton of competition.&rdquo;&ldquo;Another interest hike would actually be nice to curb the rapid rise in demand.&rdquo;&ldquo;After so many hikes, I think rising rates have lost their potency on buyer demand. It&rsquo;s important for buyers to time their purchase with the low tide of demand. It&rsquo;s also crucial for sellers to catch the high tide when looking to list their property.&rdquo;

There’s More To Rising Interest Rates Than Just A ‘Buyer’s Market’

News that a record number of new GTA condo units will be ready for occupancy in 2023 &mdash; nearly 32,000, according to research firm Urbanation &mdash; must be music to the ears of many pre-construction buyers who have waited years to move into their new homes.The bad news for some of them, however, is that rising mortgage rates are making it harder to close on these properties. A 20-percent down payment is typically required to obtain a pre-construction unit, with buyers needing to pay the remaining 80 percent after their unit has been built and finally registered as a condominium. Trouble is, many condo buyers are struggling to qualify for mortgages now that five-year interest rates are topping 5 percent. At the same time, lenders are appraising units at lower values, which means buyers must come up with extra funds to bridge the gap between the smaller mortgage and the price they originally agreed to pay.This double whammy is sure to produce a jump in the number of buyers trying to get out of their newly-built condos by selling the right to buy them. Known as assignment sales, these transactions are more challenging to navigate than traditional resales. That&rsquo;s because they involve negotiating with both the original purchaser and the developer. There also tends to be a smaller buyer pool for assignments, as larger down payments are typically needed to cover the original purchaser&rsquo;s deposit, along with any capital growth earned since the contract for that unit was purchased from the developer.What aspiring assignment buyers need to know is that buyers who purchased pre-construction units as investment properties are facing a third whammy that may be more terrible than the other two combined. According to Urbanation, the average cost of condo ownership in Toronto was $3,506 a month in the third quarter of 2022, while the average monthly condo rent was $2,733. This means the average owner who rented out a unit paid $773 out of pocket each month. When this discrepancy stood at $17 a month, as it did in 2019, or even at $196, as it did in 2020, it was typically offset by impressive increases in condo property values. Now, with <a href="strata.ca" target="_blank">Strata.ca</a> data revealing softening rent-to-list price ratios, a sharp increase in average days on the rental market, and a jump in total inventory &mdash; that $773 may well continue to balloon while offsetting property values decline.This is why assignment buyers may find plenty of leverage in the months ahead. They could end up negotiating very reasonable prices for all these newly-occupiable condos. The keys to this opportunity are threefold:1. Enlist a realtor who has plenty of experience with assignment sales and knows the developments2. Enlist a lawyer who has the same3. Consider an assignment, regardless of whether you&rsquo;re an end-user or investorAnd that&rsquo;s where this famous quote from former U.S. President John F. Kennedy comes in:&quot;When written in Chinese, the word &lsquo;crisis&rsquo; is composed of two characters &mdash; one represents danger, and the other represents opportunity.&quot;Ultimately, one person&rsquo;s financial hazard is another person&rsquo;s chance to score a brand new condo at a discounted rate.

Surge In New-Condo Occupancy Presents Assignment Sale Opportunities

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