House hunters in Toronto have long felt the frustration of a seller's market. Bidding wars frequently end in frustration, especially for the buyer who has limited resources. However, the tides can turn suddenly, and those with their fingers on the pulse of real estate law are noticing a recent advantage for buyers.
Many young couples have been content to remain in affordable condos in the city while the price of single family homes exploded beyond their means. As those couples begin to have children, however, a condo quickly becomes inadequate, and city life is no longer compatible with their new family dynamic. Nevertheless, many find they simply do not have the financial ability to purchase a home in the suburbs.
Sellers may list their homes below market value so potential buyers will outbid each other. This often ends with a buyer getting a price well above market value, thus driving the prices of real estate higher. However, recent bidders have not taken the bait, and a record number of sellers have terminated bidding because they have not gotten the price they wanted.
Prices of houses are beginning to make a slow decline. This is good news for house hunters except that they may also get less than they expect when they try to sell the house or condo where they currently live. Since more people are suddenly able to purchase single family homes, condos may sit on the market for a month or longer.
Condo owners are finding they must make extensive upgrades or offer other incentives to lure potential buyers. Additionally, they may have to balance the closing date on one property with the closing on the other. To reduce the possibility of errors or delays in the transactions, those in Toronto who are buying or selling a home can obtain sound advice from a real estate law professional.
Source: theglobeandmail.com, "As market shifts, Toronto homeowners caught between buy and sell", Carolyn Ireland, June 29, 2017