Just as no two homes are exactly alike, neither are two real estate markets. In a recent study conducted by the Ontario Real Estate Association (OREA), 41% of prospective home buyers in Toronto said they plan to purchase a condo/apartment. In comparison, only 23% of all other Ontarians had similar plans. Even neighbouring real estate markets can be quite different. Understanding local market conditions is important for anyone preparing to purchase or list a home - consulting with a local Realtor who specializes in a particular market is a great way to get-in-the-know.
The strategy that a Realtor develops for a buyer or seller often depends on the market's current state.
BUYER'S MARKET: This is the ideal situation for the house hunter. The supply of homes for sale exceeds the demand, giving buyers more choice, time to look and more negotiating leverage.
SELLER'S MARKET: This is when buyers outnumber sellers. With fewer homes to choose from, competition between buyers increases and homes sell quickly. Buyers may be required to make decisions quickly and sometimes face multiple offers on selected homes.
BALANCED MARKET: When the number of homes is roughly equal to the number of buyers a balanced market exists. It offers more predictability - home prices stabilize and the atmosphere on both sides of the transaction softens.
Staying aware of the things that influence the cycles in real estate will help you decide when to place your home on the market for example and how to price it realistically. A Realtor will be able to give you up-to-date advice and information.