Well, I guess it’s true that all good things must end. Toronto home buyers have enjoyed a bit of a relief from soaring home prices from April to now of this year, a welcomed cool spell amidst a heat wave of price appreciation. Was this to be the new norm for home prices, or was this a “bubble” that buyers would take advantage of?
As we start off August with consecutive warmer weeks, it looks like the buyer bubble is about to burst. Listings are starting to sell and, although prices continued to climb in the cooler months, we are seeing multiple offers return to some areas of the GTA.
What happened over the last four months? Buyers were gun shy as they waited it out to see what was really happening. It was like a wall had been built to keep sellers from capitalizing on the red-hot market that we saw from January to March. Sellers started to panic, and listed their homes in a rush to try and ride that very last wave and cash out. This drove inventory up in numbers we had not seen in years, and that in conjunction with the buyers going on a sabbatical brought the market to a halt.
With buyers returning, and now scrambling to get into a home before schools start, the listings have been declining slowly. All that talk about the Toronto housing bubble bursting to allow prices to drop was not all that true. What was true is the start of a buyers’ bubble, which is about to burst in the next few weeks. Toronto’s real estate market has not crashed, it was just on sale for the summer!! What day will the sale end? Nobody can give you an exact date on that, but once it does, buyers’ will be back to competing for listings and the heat wave will return. Be cool, buy now! Sale ends soon!