What is a Buyer's Market?
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A Buyer's Market is when there are more homes on the market than can be readily sold. The imbalance created by too much inventory has the result that properties languish on the market longer, thus prices decrease. Buyers have the advantage in possessing greater leverage as sellers are likely to be more desperate.
This is precisely what we are experiencing these days in the Toronto Condo market. So if there is a deal to be made in and around the GTA, I would be focusing on the Toronto Condo Market today. With all the new inventory that has flooded the market within the last few months caused by the pandemic, and the change that it brought about in the city's dynamics, there are condos that NEED to be sold, and they are selling at or below the market value.
Why the sudden surge in the inventory?
- Renters who can work from home decided to leave the city and either move back home or buy a home on the city's outskirts.
- Tourism, or lack thereof has caused many of the short term rental places to come on the market
With these changes in mind, a lot of the investors decided to pull out as quickly as they can, thus flooding the market with the inventory which was scarce in the city for many years now.
So... if you are looking to buy a place downtown which you will occupy - THIS is your moment!
Buyer Tips for Buyer's Market:
1. Always Get Pre-Approved by a lender first
2. See Price Reductions first - Shows seller's motivation to sell
3. Negotiate - this is the time to ask for things - furniture/ decor. Also, if any rental items on the property like furnace or A/C unit or a water tank - ask seller's to discharge it on or before closing.
4. Make offers conditional on financing, home inspection, status certificate review (if condo)
5. If possible, be prepared to close quickly. This may be additional buying power but also, in a declining market, it is best to get the appraisals and bank loans out of the way as soon as possible.
To get a copy of my Buyer's Guide please click the link below:
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