Selling your home can feel stressful at the best of times. But what about in the middle of a huge market shift? You might be looking at the news right now with a slight sense of panic or joy depending on your situation. 

But I’m here to tell you that a shifting market ain’t no thang if you have the right real estate agent by your side helping you navigate. 

When selling your home in Toronto, the shifting market is completely manageable, all we need to do is check ourselves and make adjustments based on what’s going on. 

Here’s a breakdown of what you need to know as a seller in the shifting real estate market in Toronto. 

But first! Are you subscribed to my YouTube channel? I’m releasing new content all the time, subscribe here to see my latest videos. 

Why is the Toronto Real Estate Market Shifting? 

In one of our previous blogs, we talked about the Bank of Canada’s interest rate hike and what that means for buyers, sellers, and homeowners. But that’s just one part of the story. Yes, the interest rate hikes play a huge role in the current market shift, but there’s actually a little bit more to it. 

Have you ever seen The Butterfly Effect? It’s kind of the same concept. The real estate market is influenced by a whole whack of factors including socioeconomic happenings, gas prices, world events, seasonality, politics, and more. 

The current shift in the real estate market is the culmination of all of these things and more. 

We’ve been in a strong seller’s market for over two years now, and it was likely only a matter of time before we started to see the balance return. There’s really nothing to panic about, but as a seller, you may need to make a few adjustments to succeed. 

Read more about what the Bank of Canada interest rate increases means for buyers and sellers in Toronto here.

Are Multiple Offers Over? 

A few weeks ago we talked about multiple offers on the blog (you can read the post here!) This is a pricing strategy that encourages buyers to submit bids on a property. Multiple offers are extremely common in a strong seller’s market where the volume of active buyers in the market far outweighs the available inventory. 

However, with the current shift, we can safely say that multiple offers are like low-rise jeans–they’re over.

There might be certain situations where a multiple offer pricing strategy works, but for the most part, they’re done. (Did you hear that? It was the sound of thousands of buyers in the GTA collectively celebrating!) 

If you still want to move forward with a multiple offer strategy, we would recommend doing so with caution and fully understanding its pros and cons before committing. 

Get Ready to Play the Waiting Game 

Last year, it was kind of expected to see homes list and then sell mere hours later. Today, not so much. Homes are staying on the market for longer. How long exactly? We tell our clients to expect an average ‘days on market’ (DOM = the number of days between listing a property and selling it) of about 14-30+ days depending on your property type and location. 

That might sound like a lifetime in post-COVID real estate, but the truth is that 14-20 days is pretty average and not at all a long time to wait to sell your biggest asset. 

Selling your home is definitely a strategy game. Here are a few things you can do to make some power moves and make sure your home gets sold:

• Is This Thing On? 4 Reasons Why Your Home Isn’t Selling
• 3 Things Buyers are Swiping Left On
• Should You Hire Your BFF to Sell Your Home?

Home Prices in Toronto are Falling 

It was bound to happen. And one of the biggest aims of the Bank of Canada interest rate increase was to cool rising home prices. Anecdotally, we are seeing home prices for condos and single-family homes in Toronto falling about 5-10% over the last quarter. 

Let’s put that into perspective. Price decreases at this rate would see a condo that was sold for $850,000 in January sell for around $780,000 now. It’s a pretty significant drop. If you’re an investor, this is an important thing to consider. 

For buyers and sellers who are moving up and down the property ladder, the difference is less drastic. For example, if you are selling your condo for 5-10% less, that means you will be buying your next home at 5-10% less too, there’s a little more balance there. 

However, this also means that the longer you wait to sell or the longer your home stays on the market, the less money you will get for it, which brings us to our next point…

Don’t Mess with the Pricing 

In a seller’s market, it was common to see homes priced low (to incite multiple offers) and then sell for far more than the asking price. But in a shifting market, sellers may need to reset their expectations and understand that pricing is going to take on an even more important role. 

Getting the price right on the first try is essential to maximizing your sale because any time wasted on the market will directly impact your bottom line. Although we are expecting your home to stay on the market longer, we still need to nail the pricing on the first go to maximize your profit. 

Wondering if you should buy first or sell first? Read my blog here to find out!

There Will Be Fewer Home Showings

In a time not so long ago, it was common for us to see upwards of 60-100 showings for a property in one week. That won’t be a thing going forward. 

In today’s shifting market, we need to reset our expectations about showings. From my experience, a good indication that we’ve hit the right pricing would be getting 3-5 showings. 

Since we continuously monitor listings for feedback, we will know if further adjustments are needed, but 3-5 per week is typically indicative of a safe strategy that will result in offers. 

Did you know that most buyers look at between 15-20 homes before making an offer? That’s why we always track the number of showings our properties receive. If we hit 18-20 showings with no offers, we know we need to adjust. 

The best feedback we can ever receive is an offer!

But can I let you in on a little secret? Agents don’t actually know exactly what your home will sell for. It’s an art more than a science, and some are better at making estimates than others. Personally, I am super proud of my pricing skills, but any agent who tries to tell you they know what your home will sell for is probably just smoke and mirrors TBH. 

The Market Will Probably Shift Even Further in the Coming Months 

In Toronto real estate, the summer months are typically when we see a seasonal slowdown. From June to Labour Day, it’s common to see buyers exit the market or pause their selling plans while they try to enjoy summer. 

Can you blame them? When we live in Canada, we need to soak up the sun when we can! 

This year, we’re expecting a similar summer slowdown. Especially when you consider the regular factors layered with exceptional circumstances such as buyer fatigue (it’s real!) and rising interest rates. 

Another phenomenon that we might see is when someone sells their property for a certain price, and then the next person sells for a little less, and so on. This happened when the market shifted towards sellers, so it’s only reasonable that it could go the opposite way too. 

Selling your home in Toronto doesn’t need to be a stressful experience. Learn more about our services for sellers right here.

Home Preparations Will Be Everything 

Even in a strong seller’s market, we always recommended clients take action to prepare their homes for listing. In a shifting market, that becomes even more important. 

As the market begins to favour buyers, you’ll need to take steps like decluttering, painting, cleaning, repairs, staging, and more. These things really stand out in this type of market. 

And even if you do go above and beyond to prep and clean your home, you can still expect to receive conditional offers. (Keep your eyes peeled for an upcoming blog all about conditional offers!)

Experts say the market is softening and I have to agree. Sellers can absolutely be successful in a shifting market like this with the right agent by their side.

If you’d like to discuss your options for selling your Toronto loft, condo, or home, call or text me at 647-973-8392. You can also subscribe to my newsletter right here for market insights delivered straight to your inbox!