2022 started off with a massive surge of multiple buyer’s bidding on homes that would most likely sell within a week. Bully offers were very common. A potential home buyer would submit a generous offer (often with no conditions and above the list price).  Then, in May 2022 the Bank of Canada announced that they would be increasing the prime lending rate. The increasing rates along with the ending of covid mandates, summer vacations and buyer fatigue contributed to a shift in the demand for homes. Buyer’s began to hold back on their plans to buy and sit on the sidelines. Home sales in the GTA have decreased compared to 2021. Currently there are approximately 63,000 homes sold in the GTA with just over 2 months left in the year. Last year there were approximately 121,000 homes sold.

What does this mean for you as a seller?

Each micro market is different, so working with a local realtor who understands what is happening in your market is important. For example, South Etobicoke real estate will differ from the real estate market in Hamilton or Ajax. For September in South Etobicoke,  we are seeing the average days on market at 18 days. Months of inventory increased to 3.5 compared to 1.6 months at the same time last year. Lastly, the average home price in South Etobicoke for September 2022 was $884,659 for all home types compared to $975,126 at the same time last year.

Looking for more home-selling resources? Read some of our past blogs here:

Pricing your home for sale correctly in today’s market is crucial. You want to get ahead of the market by not being priced the same as the other similar homes type in your area.

We have real world experience with this. Recently, we met with a few seller’s who were eager to get their home on the market. We suggested a price that would be inline with what is happening today based on direct comparable properties and market research. Despite our pricing suggestion, the seller’s decided to go another route due to a difference in pricing strategy. Now, several weeks later after pricing their home at higher list price they have not sold and have had little to no traction. Pricing is so key especially with more homes coming to market, buyer’s sitting on the sidelines and the looming interest rate announcement. Having a pragmatic and knowledgeable agent in your corner is a must!

If you have any questions about selling your home, please don’t hesitate to contact us! Book a meeting here.