So, as you have seen, in the past few months we have experienced something of a hiccup in the Toronto real estate market. When we pose the question: is now a good time to buy property? We have to ask ourselves what exactly we are looking to achieve.
The question is a simple one, however, every outcome is complex. You might have noticed when putting in an offer on a property, in a time of decreased competition that there are less bids. Even so, lowball offers aren’t being accepted by sellers.
Sellers are opting to keep their properties on the market, or even retract them from being listed if they aren’t getting the prices that they want. The reason for this is simple: they expect top dollar for their properties and in this case, are only willing to cash out at the going rates from months ago.
What does that mean?
Now is still a prime time to buy! But it requires serious thought and research if you want to get a steal. The point here is, there are a lot of very serious buyers but not a lot of serious sellers. People who are willing to take less than the actual going rate for their homes are either disinterested on a massive return on their property OR they are desperate to sell.
The key is, a lot of people who bought at the peak of bidding wars and average prices might have been speculators. Those are people who were hoping to buy a home, and sell it nearly immediately for a markup. Noticing that the market has become less active, they are trying to salvage their investment and take a lower return or even a slight loss to mitigate the damage to their finances.
After all, the people that tend to lose in this risky quick investment are those who do not have the funds to sustainably hold a property until the prices recover or sales interest surges again. We ought to be mindful of the circumstances of these particular buyers and aim not to hurt them.
However, now is a good time to buy a property in Toronto. Residential real estate in the city can be difficult to obtain at a reasonable rate, and with proper representation and planning, this can be a sizable return for a savvy investor!
If you want to learn about how you can find a property of this nature, something you can buy for a long term return in and around the city of Toronto – give us a call! It is an opportune time to buy if you know just where to look!