The real estate market continues to change and we've now entered a balanced market, which means that neither sellers nor buyers have the advantage. In other words, market conditions are fair on both sides.
You might wonder if I'm a little crazy in saying this, especially when reading that the number of homes sold in July in the Greater Toronto Area dropped by 34% compared to July 2009. But, it's true. The reason that the market is still balanced - as opposed to becoming a buyers market where buyers have the advantage - is that fewer houses are being listed for sale. When there is less inventory, this usually causes a sellers market. But because buyers are shopping less, and the number of homes being listed is less we're in a balanced market. Ah, now it makes sense.
In saying this however, if the number of houses being listed for sale increases but buyers don't start buying again, then it will become a buyers market - sort of like during the recession. So what does this all mean for you?
Well, if you're a first time buyer, then a buyers market is a good thing. A sellers market is a bad thing for a first-time buyer, as you may end up losing a home in a multiple-offer situation or paying more for your dream home.
If you're selling a home and upsizing to a more expensive home, the market is what it is. It doesn't really matter too much, because whatever is happening in the market is going to happen both with your sale and the new home you'll buy. In other words, if market values drop 5% you'll get 5% less on the home you're selling - but you'll pay 5% less on the home you're buying.
If you're selling a home and downsizing to a less expensive home, then a balanced market is fine. Prices are stable, and conditions are fair for both you as the seller, and for the buyer. Of course, a sellers market when you're downsizing is ideal.
I'll watch the market carefully over the next few months, and let you know how it changes. In the meantime, feel free to contact me at firstname.lastname@example.org if you have any specific questions. When you need real estate services, get in touch. I'm ready when you are.
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