In February, the Greater Toronto Area (GTA) experienced a significant shift in its real estate dynamics, with 25% of its neighborhoods entering overbidding territory, compared to none in the previous month. This marked a notable escalation from November of the preceding year when no neighborhoods were in overbidding territory. Despite the majority of neighborhoods being in underbidding territory earlier in the year, bidding wars were still prevalent, particularly for houses priced below $1 million. These properties garnered considerable attention, often selling for hundreds of thousands over asking price and attracting dozens of offers, even amidst an overall trend of underbidding.

The top overbidding neighborhoods in February were spread across the GTA, including areas in Ajax, Brampton, Markham, Pickering, and Toronto. Conversely, neighborhoods with higher home prices tended to be in underbidding territory, a pattern consistent with previous observations. While the condominium market saw an increase in overbidding activity, with 7.3% of neighborhoods entering this territory in February compared to none in January, it remained relatively less competitive than the non-condo segment.

The non-condo segment, comprising detached and semi-detached houses, row homes, and townhomes, witnessed a substantial surge in overbidding activity, with 88 neighborhoods entering this territory in February, up from none in January. This contrasted with the condo market, where only 10 neighborhoods experienced overbidding. The majority of these overbidding neighborhoods for condos were located within the City of Toronto. While both segments were displaying increased competitiveness, condos appeared to be a relatively less intense arena for bidding wars compared to non-condo properties.

Reference: https://www.remaxhallmark.com/news/940779/Dynamic-Shifts%20GTA%20Real%20Estate%20Trends%20in%20February

Read the full article: https://realestatemagazine.ca/theyre-back-the-gta-is-seeing-bidding-wars-once-again/

The initial segment of the Spring Housing Buzz series explores the nuances of Ontario's real estate market as spring approaches. Realtors and economists provide insights into seasonal trends, noting the gradual uptick typically observed from early February through March, leading into what's commonly referred to as the spring market. However, the exact onset of this market surge varies, influenced by factors beyond a fixed calendar date, such as weather conditions and regional trends.

Realtors across Ontario offer perspectives on the evolving market dynamics. While Guelph and Kingston realtors suggest a post-March Break uptick in activity, the early warmth in Kingston accelerates market movement. Conversely, the market slows during the summer months before picking up again in September. Sellers are advised that the spring market, along with the shorter fall market, presents optimal selling conditions due to increased buyer interest and better sale prices. Conversely, buyers may find better deals during August or November-December, albeit with reduced inventory and competition.

As the market inches closer to spring, realtors remain cautiously optimistic, navigating uncertainties surrounding interest rates and affordability. While some areas like Toronto experience a resurgence in buyer activity driven by lowered interest rates, other regions like Guelph and London witness varying degrees of market activity. Economists, such as Robert Hogue, emphasize the significance of interest rate adjustments in stimulating market activity, foreseeing a potential uptick post-mid-year when the Bank of Canada might lower rates. However, concerns loom regarding homeowners facing mortgage renewals amid rising rates, potentially leading to increased selling activity in the future. Overall, stakeholders anticipate a nuanced interplay of market forces shaping the upcoming spring market in Ontario.

Read the full article on: Global NEWS

The Toronto property market has had a shaky few years, but things could finally be looking up. Home sales and new listings increased in January 2024 compared to January 2023, according to the Toronto Regional Real Estate Board (TRREB). Market conditions could improve further as inflation and borrowing costs decline, opening up new opportunities for buyers. That makes the coming months a potentially great time to purchase or sell a new home in this amazing city. A reputable local real estate agent can guide you through this complicated process.

Home Sales Are Up

Total residential sales in Toronto grew a huge 37% from January 2023 to January 2024, with 4,223 transactions reported last month, which is great news for sellers. This increase could be because of lower borrowing costs, with more homebuyers taking out fixed-rate mortgages offering competitive terms.

If you buy a home in the next few months, a fixed-rate mortgage will protect you from sudden interest rate increases, allowing you to make the same repayment to a lender every month.

Home Listings Also Increased

There were 6.1% more listings on the Toronto market in January 2024 compared to January 2023. In total, homebuyers could choose from 8,312 homes — up from 7,836 homes at the same time last year. If this trend continues, you'll be spoiled for choice when finding a property in this incredible city.

Toronto's sales-to-new listings ratio also grew by 12% year on year, according to TRREB's data. That suggests increased demand for properties in January 2024 compared to January 2023.

Average Selling Price Stays the Same

Homes in Toronto sold for an average of $1,026,703 in January 2024. That's just 1% less than the average price in January 2023 — $1,036,925. However, experts predict that prices in the Greater Toronto Area could rise significantly at some point this year, which will benefit all you sellers out there. However, if you're a buyer, you might want to consider purchasing a home sooner rather than later.

If you decide to buy or sell a property in the near future, a local real estate expert can help. The right realtor can provide support in an ever-fluctuating market and make your life so much easier.

Other Local Market Insights

TRREB revealed other trends in the Toronto property market in its most recent report. For example, the average number of days a home stays on the market jumped from 41 to 54 — an increase of 31.7%.

Also, certain property types experienced less growth than market averages. Condo apartment sales, for instance, dropped 3.4% from Q4 2022 to Q4 2023. In the commercial market, leasing activity through the Toronto Multiple Listing Service (MLS) rose 14.5% from Q3 2022 to Q4 2023. However, total sales through the Toronto MLS decreased by 20.4%.

What's Driving These Changes?

Lower inflation is one factor having a positive impact on the Toronto real estate market. The Bank of Canada expects inflation to remain at around 3% in the first half of 2024 before returning to target levels next year. These predictions might encourage homebuyers to move back to the market and invest in real estate.

TRREB's Chief Market Analyst Jason Mercer says:

"Once the Bank of Canada actually starts cutting its policy rate, likely in the second half of 2024, expect home sales to pick up even further. There will be more competition between buyers in 2024 as demand picks up and the supply of listings remains constrained."

Lower mortgage rates are also making homeownership a more attractive prospect, especially for first-time buyers paying high rents. Mortgages with competitive interest rates could fuel the property market and increase demand for homes.

That said, TRREB notes that the federal and municipal governments still need to address policy issues impacting the market, such as the need to build new homes. First-time buyers also need financial help to get a foothold on the property ladder. Solving this issue will reduce pressure on the strained rental markets in Toronto and other Canadian cities.

Why You Should Work With a Local Realtor

The Toronto property market is finally showing signs of recovery, with home sales and new listings on the rise. Lower inflation and borrowing costs are positively impacting real estate, making it a good time to buy property for many locals.

If the market continues to improve, demand for the best homes in Toronto will likely increase. That's why it's a good idea to work with a reputable realtor in Toronto who can find properties not listed on the MLS. An experienced expert can also negotiate on your behalf and help you find the perfect home that matches your budget. If you're a seller, a realtor can help you get the best price for your property as demand for homes in the city increases.

Now, you can explore the best of the Toronto real estate market with Yin-Lynn Realtor Group. Contact us now for a consultation.

Spring is the ideal time to start the home-buying process, and Toronto is poised to provide an exceptional opportunity for many of today’s buyers. The housing market in much of the area has had a fairly frigid winter season, filled with flat year-over-year price increases in most neighborhoods. But a new promise is on the horizon.

There’s much to look forward to, including a substantially larger inventory of homes for sale with competitively low interest rates. With prices holding steady, home buyers have the opportunity to squeak in a good deal before those values increase in the coming months. If the Bank of Canada moves benchmark interest rates lower, as some anticipate, that’s an even better reason to make your move into this market now.

Let a Real Estate Agent Guide You

The Toronto real estate market is still likely to remain highly competitive. As a result, it’s wise to work closely with a local real estate agent who can help you find your ideal home and navigate the investment opportunities out there.

Some areas of the market have seen a rush of buying in the last two years thanks to investors buying up property for rentals or flips. Now, those investors are poised to sell, which means opportunities for home buyers. Still, if you’re buying into this market, you certainly don’t want to overspend (or miss out on a fantastic opportunity because you didn’t make a large enough offer).

With the help of a real estate agent, home buyers can make confident, market-specific decisions even in a more challenging environment.

Strategies for Buying in a Competitive Market

So, how does one thrive in Toronto's competitive market? Here are some invaluable tips from our team:

Create a financial plan first

Your first step is to create a solid financial plan for buying your next property. You must be ready with pre-approval for a mortgage lined up as early as possible. For many home buyers, that will give you a competitive edge when bidding on a prized home. Home sellers are more likely to prioritize buyers with ready-to-go lending as well. Use our mortgage calculator to help you get started.

Have a discussion with your agent

Collaborate closely with your real estate agent to outline your requirements and preferences for your next home. Their insights into current market rates, coupled with access to hidden gems not listed on the Multiple Listing Service, can prove invaluable in your search.

Be ready to decide

Consider your timelines and the implications of purchasing now. Are you prepared to seal the deal and relocate within 30 to 60 days, or do your circumstances necessitate a different timeframe? Clarity on this front will streamline your decision-making process.

Talk to your agent about the use of a bully offer

In a fiercely competitive market, consider the possibility of making a preemptive offer, known as a bully offer, before the property's official offer date. This tactic could potentially eliminate competing bids and enhance your chances of securing the property.

Be ready and willing to negotiate

The real estate market is competitive for buyers, but it’s very much an individual process. That is, every potential sale needs a skilled negotiator available to help guide the process. Don’t offend with super low offers, but also work with your agent to ensure you offer a price that’s still competitive for the market.

Always be ready to negotiate when it comes to conditions and inspections. Though many of the homes in this area are well-maintained, there are some overpriced properties. Having an inspection and home assessment clause in your contract can alleviate a lot of the frustration here.

Put the Team at Yin-Lynn Realtor Group to Work for You

Take the time to explore what the Toronto real estate market can offer you by contacting our team at Yin-Lynn Realtor Group. We help people looking for exceptional properties find opportunities at the right price and at the right time. Contact us now for a consultation.

Resources:

https://www.theglobeandmail.com/real-estate/toronto/article-hoping-for-early-spring-in-a-chilly-housing-market/