Toronto real estate is a buyer’s market. Or is it? Plenty of houses are sitting on the market and selling below the list price. However, some homes are still getting bidding wars and fetching high prices. This week, a two-bedroom semi-detached house in High Park North had nine offers. At the same time, affordability is worse now than in the past because interest rates are higher. Homes that sell for a lot of money with multiple offers demonstrate that there are still a staggering number of buyers in this market with deep pockets. Many buyers are, therefore, feeling confused about the current state of the market.
As a buyer, you can take advantage of the buyer’s market and get a deal on the house by looking for places that are not perfect. Making compromises will save you money. We know that the renovated homes, with parking, on quiet streets and in good school districts, are selling quickly. Houses that don’t check all those boxes are sitting on the market.
Here are some compromises you should consider making to save a lot of money.
- Renovated versus dated: Understandably, many buyers want entirely renovated houses. However, the demand for those houses is still relatively high in Toronto. Places that are liveable but dated are sitting on the market for a while because the task of renovating daunts buyers. So, if you can live comfortably in a house that was last renovated in the 1980s, do it. Likely you’ll be able to renovate in a few years with all the money you saved by skipping the renovated house. The price spread between a renovated home and an unrenovated place is significant.
- Parking versus no parking: most buyers want parking for one car, but only some houses in Toronto offer that. If you find a home with easy street parking and available permits, you’ll save a bundle by giving up a parking space. This may work if you can take transit to work and only use your car on weekends.
- School district: This is tricky because schools are so important for kids. However, if you do not yet have children, consider compromising on a good school district. If you do not currently have children but are planning for them, you’re a minimum of five years away from having a child enrolled in Kindergarten, and likely longer. That means that you could be looking for a starter home that you can move out of before school starts. Or hope that the home school will improve in the intervening years.
- Central location versus less central: Houses in Roncesvalles and Trinity Bellwoods are still selling well. If you go further afield, for example, in the Wallace Emerson area, you can score a perfect house for less money. Of course, it has always been true that homes in Wallace Emerson are cheaper than similar houses in Roncesvalles; the spread is growing larger.
Good luck out there! It’s easier than ever to be a buyer in the Toronto market. You just have to know how to play your cards.
Are you in need of dedicated home-buying services from a West Toronto market expert? Give us a call! We’d love to work with you.
