Share This Post:

Due to a consistent lack of housing and limited new listings in Toronto, we have been in a robust seller’s market for years. It’s often hard to imagine house prices continuing to rise, but every year we see new record prices.

The notion of a bubble bursting seems to be a thing of the past. The Toronto real estate market has proven time and time again that supply and demand will forever be an issue.

Is there a slowdown coming? Will prices flatline as interest rates rise in 2022? Once again, industry experts have different theories, but the reality is it’s hard to predict home buyer demand when home ownership is a priority for many yet affordability starts decreasing.

In a seller’s market, the home seller always wins, but are they always maximizing the sale?

Timing the Toronto real estate market perfectly is virtually impossible.

Even though we have been in a heated seller’s market for years, we do actually see small yearly fluctuations, often not talked about in the media. We have optimal seasons for home sales, but we also have minor downturns and we wonder if all home sellers take advantage of the highs during any given year.

Although there is no formula for timing the peaks of the Toronto real estate market, there are usually indications of upcoming optimal selling times and potential lows. In fact, in Toronto’s west end, where we do over 80% of our business, we just experienced a low in what the experts are calling record breaking weeks in the Toronto real estate market. This little downturn in the market lasted only 7-10 days and it was due to a few factors which all came into play at the exact same time: An interest rate hike, media reporting record breaking sales which can scare home buyers away, the escalation of the war in Ukraine and March Break.

All of a sudden, many buyers took a pause. They needed time to process this information and some even went on a well deserved vacation. As a result, we saw far fewer offers, longer than usual days on market and in some cases, lower prices on some homes. Less than two weeks later and this downturn is over and we are back to an incredibly robust seller’s market.

This is just one example of a short market downturn that could cost some sellers a significant amount of money on their final sold price.


➤ If you want to learn more about selling successfully, you should also have a look at these posts:


During a typical yearly cycle in Toronto, we see several peaks.

The spring real estate market typically starts in early February (yes that’s right, in the dead of winter!) not April! In fact, if you are only just starting to think about a home sale before summer,  you might have already missed the best selling opportunity of the year.

Supply of new homes is such an issue in our city. Aggressive and well prepared buyers know that the sooner they start house hunting, the more likely will face less competition.

These buyers are usually ready to pay top dollar to secure a house before the flood of other buyers as warmer weather approaches.

Typically, and we say say typically because the market and all we know about it, may change drastically at any point. We see record breaking sales in February and March of any year. There are less houses on the market and more eager buyers competing for limited inventory. This makes for one of the best times to sell your house in Toronto.

As inventory rises, prices may flatline.

Yes, that is true. The more houses we see on the market, the more buyers start feeling like they have more choice and are less eager to buy quickly and for more money.

By late May we often see buyer fatigue kicking in, adding to the slowdown in the market and a potential flatlining of prices.

The summer months will see an exodus of home buyers as they take a well deserved break from their house hunt. We often advise our clients to wait out the summer months. July and August, and list in September. This is when home buyers are refreshed and ready to take on the house hunt.

The fall brings another strong home selling time, however this real estate season is shorter than the spring. To maximize your home sale, list your home in September and beginning of October at the latest. A similar inventory pattern will most likely follow and there will be more new listings in October and November. When home buyers are given more choice, they ultimately have less fear of missing out on a home as they know more houses will come to market.

Always evaluate economic changes

It’s hard to predict the real estate future in Toronto, but it’s always important to cast a wide net when it comes to factors that could force some changes. The most talked about changes in 2022 are inflation and the rising interest rates which are no longer a maybe but actually a definite. How many rate hikes will we will see? The experts are predicting 4-6 prime interest rate hikes before the end of 2022, which will have definite impact on affordability.

Buyer confidence in home ownership and the economy has a direct impact on the Toronto real estate market. We often see this come into play during small downturns, such as the one discussed earlier, before March break. Keeping a pulse on buyer activity and the current market momentum is an important consideration before listing your property for sale.


Thinking about selling your home? We can help!


 

Our West End Expertise

We know West Toronto like the back of our hands. From real estate to restaurants to neighbourhoods, we have the intel you need to know. Learn more about our local expertise here.

Learn More

Don’t Miss Out!

Get on our mailing list to be first to know about the latest West Toronto listings and receive exclusive community content from the neighbourhood’s experts.