Market Update
The 2019 market has been slower to start than previous years. The first quarter showed lower levels of inventory across the GTA and it was only in April that TREB reported a 16.8% year-over-year increase in home sales. It is important to note however that these numbers remain well-below April levels for much of the past decade, as buyers are still reassessing their options after the OSFI-mandated two percentage point stress test on mortgages.
To give you an idea of the volume of sales, please see Table 1, which shows the number of homes sold in the west end between January 1stand May 31stand the average sale price.
Buy or Sell first?
We often get asked whether to buy or sell first.
When inventory levels are low in the area a buyer is looking in, we will recommend that a new home is found and bought first, prior to selling their home. The reason for this, is to ensure the buyer has secured a home and has somewhere to go when their home has sold.
By selling a home first, there is pressure to find a new home between the selling date and closing date. This pressure can often lead to a wrong decision being made and compromises that are far from ideal. In a perfect situation, you buy a new home with a long closing to enable your own home to be staged, listed, sold and closed prior to the purchase of your new home.
Some buyers however want to know exactly how much their home will sell for, prior to putting an offer on any home. This is also a fair strategy, and the closing date for the sale should be as long as possible to allow for the perfect home to be found, offered on and agreed.
The Buyer Pool
Our buyers fall into different categories:
- Couples coming from downtown condos wanting more space
- Growing families needing bigger homes
- Downsizers who want to stay in the community
- Those looking to invest in property
- Buyers new to Toronto
We work with all of our buyers to determine and understand what they want and need in their next home; What community they want to live in; What the specific requirements are for the location, be it proximity to a certain school, community, transportation route, or another amenity; What are the must-haves and deal-breakers and what their budget is.
The Educated Buy
With our own homes in the west end, our own children enrolled in the schools, and our own lives anchored in the community, our first-hand insight into Toronto’s west end will provide our buyers with tried and true advice when finding the right neighbourhood, school, and home.
Our knowledge goes far beyond the real estate transaction. From the top after-school programs to where to find the best cup of coffee, we provide a comprehensive education on the different west end neighbourhoods.
To help our buyers truly experience any neighbourhood, we take them on a community tour. We will show houses in multiple neighbourhood pockets and provide the associated listing and sales data so that they have a thorough understanding of where they can afford and why. We will help determine what makes a sound investment and will honestly and openly share our expertise on every home we show.
We love working with buyers to help them find the perfect home. Should you or someone you know need some advice on where to go next, please contact us at team@redsquareteam.com
