When Covid -19 first arrived in Mid March we were in the midst of one the most active real estate markets in history. However, things began to change really fast and now are quite different. Here’s what we saw in our Etobicoke market in the month of April.
Buyers took a pause from the market in the month of April. The number of house sales was down 80% and condos were down 77% from the same time period last year.
Prices were up 4% in the detached house market and 9% in the condo market compared to one year prior.
The number of homes on the market was down 58% in the detached home market and actually up 6% in the condo market.
One ratio that we like to watch is the ratio of homes SOLD in the month compared to the inventory of homes on the market. This ratio is an indicator of whether we’re in a seller’s market, balanced market or a buyers market. The current ratios put us in a balanced market trending towards a buyers market in the detached home market. In the condo market, we are now in a buyers market for the first time in many months.
A high percentage of sales in the month were at the lower end of both the detached home and condo market. Buyers are still out shopping at the entry-level but are pausing in the higher end of the market. The higher-priced homes in each market were a bit soft in the month of April.
Our Tips for Buying and Selling in the current market
So what does this all mean if you’re thinking of buying or selling? We’ve got some tips to help you decide what to do.
1. Thinking of selling your home soon?
The market has shifted from a seller’s market to a balanced market. The luxury market for both condos and detached homes is now a buyers market. This means that there is more selection for buyers and they are taking their time to make sure that they find the right home at the right price. Sellers will need to price their home right for the current market. Houses are selling at a slower rate so sellers need to be patient when listing their property.
There are many special protocols that have been put in place to ensure the safety of both the sellers and the agents. You can read about them here.
2. Thinking of buying a home or condo?
Don’t wait; the time is now! You don’t want to look back in six months and think If only I’d made the move a few months ago. If your job is secure, it really is an ideal time to make a move.
Many offers are now coming in with conditions. It’s advisable to work with an experienced agent who knows what conditions will protect your interests when offering on a home.
3. Are you a first-time buyer and wondering where to start?
If you’re beginning your search, one of the first things to do is to get pre-approved for your mortgage. This way, you’ll know exactly how much you can afford and avoid disappointment. If you have job security, it’s a great time,e to take the plunge into homeownership.
4. Are you deciding whether to buy or sell first?
We delved into this topic in a recent blog post, but in general, it’s a good idea to sell first. You’ll know how much you have to spend and you won’t have to settle for a lower price if the sale ends up taking a long time. If you do buy first, you could consider adding the sale of your home as a condition in your offer. Unconditional offers were the norm for a while, but sellers are more open to considering conditional offers in today’s market.
If you’re thinking about buying or selling in the near or far future, we’re here to help. Get in touch with us today!
Do you need help to figure out what’s best for you? Let’s start a conversation.
Let’s set up a time to chat about your circumstances so we can help guide you through the next steps.