The real estate market has always been evolving. Today, it’s hard to believe that housing sales once ebbed and flowed with the season. Almost like clockwork, spring and fall brought a flurry of activity, while summer and winter were the calm before the storm. It seems that the current landscape is less predictable than ever. We could be in the midst of a fast-moving market one month. Then shortly after, the pendulum shifts again. Where are we now, and how do we tell: Is it a buyer’s market in Ontario?

In this post, we’ll shine a light on the signs to look for, and how to navigate any situation when buying or selling a home.

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What Is a Buyer’s Market

A buyer’s market simply means that real estate conditions overall tend to favour buyers. The signs to watch for are the number of listings available compared to how many people are seriously searching for them.

Simply put, when the “For Sale” signs outnumber the buyers, we are almost certainly in a buyer’s market. These conditions are often (but not always) accompanied by flat or falling housing prices.

When the Market Shifts

Though real estate tends to defy all expectations, a number of factors can contribute to a shift in the market. For example, when interest rates are high, many people put their plans to buy a house on the back burner. Those who are left have more options, and thus, more negotiating power.

Inflation can also cause the market to slow down. As the cost of living increases overall, fewer people can afford a new home within their budget. This opens up opportunities for qualified buyers with the means to capitalize on any market. When the economy booms, more people may list their homes in the hopes of exploring new horizons.

The real litmus test as to what type of market we are in comes down to supply and demand. Currently, the population in Canada and especially Ontario is outpacing the construction of homes.

Market conditions can shift in favour of buyers from time to time due to broader economic and financial factors. Right now, however, many Ontario markets are experiencing what looks like a genuine buyer’s market — with increased inventory and more competitive pricing creating real opportunities for those looking to purchase a home.

If you’re considering entering the market, this could be an ideal time to do so. While headlines often highlight a housing crisis, the issue isn’t a lack of interest — many people want to buy. The challenge is that fewer buyers have the financial means to act, which puts pressure on both supply and demand in complex ways.

Looking for more tips to buy a house? Look no further than the related reading below:

What Is a Seller’s Market

A seller’s market is the direct opposite of a buyer’s market. It boils down to too few houses available and too many buyers who want them. As multiple hopefuls compete over the limited number of listings, there’s an upward pressure on prices.

Seller’s markets are often associated with low inflation and low interest rates. Decreased borrowing costs have a way of making houses more affordable even when values are relatively high. That’s one of the reasons that many homes sell quickly, often over and above the asking price. It’s a great position to be in when you’re planning to sell.

That said, nothing lasts forever. Housing prices can only rise so much before conditions become unsustainable. Soon, people will start to pull back to try to wait it out, and the cycle begins again.

Is a home sale in the cards for you? The posts below will help streamline your move:

Buyer’s Market Vs Seller’s Market: Should I Wait?

At first glance, it makes sense that a buyer’s market is the ideal time to buy, and a seller’s market is the best time to list your home. But is anything ever that simple? Not when it comes to real estate.

Let’s say you decide to strike while the iron is hot and list your home during a busy market. Buyers notice right away, and you get so many offers you don’t know what to do with them all. You’re ecstatic that your house sells so quickly and at a price that seems too good to be true. But what happens now? If you plan to buy a new home, you become a buyer in a climate that does not favour you.

After much searching, you find the perfect listing. The only problem is that numerous other hopefuls also have their eye on it, and so the bidding begins. You’re going to need every dollar of that extra profit you made by selling during a seller’s market!

In the next scenario, you list your home in a slower buyer’s market. It seems to take forever before anyone shows any interest. When you do find a buyer, they want to negotiate. With so few offers on the table, you have no choice but to offer a concession or two. Finally your house sells, and you’re lucky if you manage to get your listing price.

What happens next? You become a buyer in a buyer’s market, and suddenly, everything is looking up again. This endless cycle is why we never recommend waiting for conditions to change if you’re ready for a move. With some extensive analysis and help from an experienced real estate agent, you will always have advantages at your disposal.

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Why Time In Market Matters Most

The truth is that no one ever really knows when it will be a buyer’s market or a seller’s market. After years of experience in the industry, we can get a sense of the overall flow and direction, but we still can’t say when the market will peak.

However, there is one longstanding trend that has never failed us: housing prices have always risen given enough time. The earlier you buy a house, the more equity you stand to gain as the years go by.

Getting in early and holding onto your home is a concept we call “time in market.” Strategizing for the long run is generally always better than trying to time the market and hoping that luck is on your side.

With enough “time-in market,” you’ll never have to worry about whether it’s a buyer’s or seller’s market right now. You’ll be empowered to act and get the best possible results on your terms and when you are ready.

Our Georgetown real estate agents can help you make the most of your transaction when buying or selling. Give us a call directly at 905-873-9944, email us at info@lisahartsink.com or fill out the form on this page to get in touch!