Timing is everything…
Earlier in the year I witnessed some pretty incredible real estate transactions. I watch the MLS like a Stock Broker watches the ticker tape. Sometimes I couldn’t believe what I was actually seeing. Houses selling for 100k over list..or more! 500 sq ft. Condos selling with multiple offers. It’s amazing how supply and demand worked in perfect harmony to turn the Toronto Real Estate market into a feeding frenzy.
I work with a lot of clients, and have sold many, many houses and condos in Downtown Toronto. But, I have never worked with, nor advised any of my clients to participate in a full on bidding war. I suppose I understand why a buyer would offer a huge sum over the list price…true love! After all, love is blind! If you love a house (and don’t care that you have overpaid for it) and you’re happy, then good for you.
Anyway, that was then and this is now. It’s a buyers market, and it’s a polar opposite of what it was. There is inventory…and deals can be had. More supply and less demand.
Now the press is reporting that there are bidding wars on Toronto rental units. My tip…buy when the market is in decline. If these buyers wait for the prices to drop…what do you think is going to happen when they all start buying again? Well, demand will outstrip supply and this same group that were waiting for savings, will actually drive the prices back up.
If you are thinking about buying a house in Toronto, as I said, buy when the prices are in decline. There won’t be a date in the calendar when the prices are at there lowest. What you will see is an article, probably in the Globe and Mail that says something about the average price rising. If you read that and think, okay, I’ve waited long enough I better buy now…sorry to say, but you waited too long. The prices have already risen and the Globe editorial is simply working with stats that became available for the previous months sale. In fact, you are about 2 months too late…but you will have loads of company as there will be many buyers in line who made the same mistake you did!
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