Thinking about listing your home in Toronto? You’ll need to have the right information before you make a move.
Is it a Buyers or Sellers’ Market?
First off, you need to remember that the housing market is cyclical. The cycles are influenced by different factors like consumer confidence, economic conditions, and interest rates. They can combine to create a surplus or shortage in housing.
A sellers’ market occurs when there’s a shortage of available housing and more buyers looking to purchase than homes available. A buyers’ market happens when there’s more housing on the market than buyers.
- With a seller’s market, prices are usually higher because the demand is increased. The property can sell quickly and there are more than likely going to be multiple offers. This gives the sellers in Markham more negotiating power to reject sales features like conditional offers. Things move fast in these markets. This is a robust market where homes only sit for an average of nine days before they sell.
- A buyer’s market has lower prices associated with it because there is increased supply. With this kind of surplus, rising prices are slowed and there might even be price reductions. Buyers in this type of market have more selection and better-negotiating leverage.
So if you’re looking to sell a home fast, you’ll need to hit the right part of the cycle and jump in during a seller’s market. Deciding whether 2022 is that time means looking at some trends and stats.
Consider this:
- A recent report highlighted in the real estate listing site Zoocasa, points to this year is a good time to sell quickly in Richmond Hill. That city has seen a bump in house prices of 19.7% YoY from Feb.
As of January 10, 2022, sales volumes were down 30% YoY as buyers compete to purchase the homes left on the market. That drives the sale prices up and makes this a good time to list.
- Need a little more convincing? Then take a look at a recent Scotia Bank report that has Canada’s housing market lagging behind other similar countries in inventory. Specifically, the research shows we have the lowest number of housing units per 1000 residents of any G7 country. That means we’re behind other advanced locations like The European Union, Japan, Italy, Germany, France, the UK, and the United States. It’s a situation the pundits are trying to fix. However, for now, it’s another clear signal that 2022 will be a good time to sell.
Low Inventory Won’t Be Changing
A few other ideas from the Scotia Bank report suggest this low inventory trend won’t be changing any time soon. For example, the government plans to increase immigration, which will mean more foreign students and more demand for housing. Likewise for the national childcare program that will increase family incomes and the demand for housing. These are good trends if you’re looking to sell a condo.
Still, selling in Pickering is a big decision. Reading what the experts have to say can help you make a well-informed decision and move fast.
Real estate Expert on 2022 Trends
The Canadian Real Estate Association (CREA) has put together some quarterly forecasts that are important. For example, they don’t see the price growth in homes to be as extreme in 2022 as it was in 2021. However, they are still predicting an “ unprecedented supply crunch.”
That’s good news if you plan to sell a cottage this year. Buyers can be very picky when looking at cottages. As well, the sales focus on spring and summer. With less properties on the market, cottage owners stand a better chance of selling with low inventory.
CREA feels that a major increase in new builds that will drive prices down isn’t likely within the space of this year.
Strong Sales This Year
In the end, they see strong sales in 2022 with a rise in interest rates slowing down the activity somewhat.
Closer to home, 2022 will be a good time to sell in the GTA according to the Toronto Regional Real Estate Board (TREEB). Although they see a dip in home sales from 2021, the results will still be strong when compared to previous years. The average selling price is set to climb according to TREEB. In fact, they see an average increase of 12% YOY to $1,225,000.
So, although there are a few headwinds like rising interest rates, the real estate experts see other factors like record immigration and job creation creating strong demand. It’s a good time to sell, but you’ll want to avoid some common blunders.
Mistakes to Avoid
It doesn’t matter whether you’re selling a house, condo, or cottage, homeowners make mistakes that cost them money and even the sale.
Here are a few of the more common ones you can avoid.
- Not Pricing Your Home Properly. Underpricing or overpricing a home is one of the bigger mistakes a homeowner can make. Understanding the market you are in and what similar homes have gotten when they sell is critical. You’ll be looking to establish what’s called a fair price. Using comparable data and your local market for looking at extremely low and extremely high prices is a good starting point. Underpricing the property is one way to start a bidding war.
- Not Completing Disclosures. You need to be forthcoming and upfront about any of the home’s issues. That will save you time and money in the long run because buyers usually uncover problems themselves. Plumbing leaks and flooding issues can top the list. Other common disclosures come into play like boundary line disputes with neighbors or a municipality.
- Using Bad Pictures. Watch out for terrible smartphone photos that get used in listings. Keep in mind that using a professional real estate photographer who understands angles, lighting, and other details can make a big difference. For example, a pro understands the importance of natural light to a vibrant warm photograph.
Finally, not understanding all the costs of selling is another mistake that you want to avoid. These go well beyond the commissions that most real estate agents get. These legal and administrative add-ons include a real estate lawyer, GST/HST, home insurance, and land transfer tax.
This year is shaping up to be a good time to sell your home, condo, or cottage.
MortgageBrokerStore’s team are licensed mortgage brokers, agents, and direct private lenders. We deal with customers that don’t meet more traditional lending institution requirements.
Our team makes a difference by controlling the funds personally. That way we can commit to a mortgage in less than a day. We can also look after the deal so there’s no commission to pay and no real estate agent to use with our cash home buyer service.
Call 416-499-2122 or email ron@mortgagebrokerstore.com today.
