After two years of doomsday, the news reports a rosy outlook for the real estate market. To add to this optimism, the Bank of Canada held rates steady yesterday. Whether or not the market is trending upward will become apparent in the next few weeks. However, these good news reports are having a self-fulfilling effect on the market. Buyers worried about buying in a downward-trending market are now jumping in with more confidence than last year. Sellers who didn’t want to sell at a loss last year are getting their houses ready for what everyone hopes is a busy spring market.
Although there isn’t data to back it up yet, our boots-on-the-ground experiences tell us that we are headed back into a very competitive seller’s market, with the number of buyers heavily outweighing the number of sellers. Two properties in the west end sold for high prices and twenty offers last week. Other homes that have been on the market for months are suddenly getting multiple offers.
How should you navigate this new spring market?
If you are a buyer:
Stop looking for the bottom of the market because that happened in December. Prices are trending upward again. The good news is that you haven’t missed the market. It will take some time for prices to rise as high as before. But time is no longer on your side. If you see a house you like, you should offer on it quickly. The longer it stays on the market, the more likely you will face competition.
Remember that you are in a unique situation where you benefit from more listings, but prices haven’t risen as high as they are likely to yet.
If you are a seller:
Get your house out in the next few weeks. There is still a shortage of listings, and buyers are motivated. Take advantage of this new-found consumer confidence by being one of the first houses to come out.
You still need to measure your expectations. Prices are not what they were in January 2022, but they’re higher than in December 2023.
Good luck! Wishing everyone the most tremendous success in real estate.
Also!
Important reminder!
You must complete the annual Declaration of Occupancy Status form if you own a residential property in Toronto. This declaration is designed to tax owners of vacant homes, but you must file your occupancy status form even if your home is occupied.
The deadline for this declaration is Feb 29, 2024. If you fail to file your Declaration of Occupancy Status, the city will assume your property is vacant and tax you 1% of your MPAC assessed value. For example, a house assessed at $1,000,000 will be taxed $10,000/year. There are some exemptions to this tax. Speak with your accountant for more information.
Here’s a link to make the declaration online.
It’s quick to do. You’ll need your tax bill to fill out the declaration.
Please let us know if you need any assistance.
