Week 188: An Insider’s Take: Why Alarmist Real Estate Takes Often Miss the Mark

The Real Estate Market Update You Won’t See On Social Media

If you’re not actively trading real estate or networking with agents regularly, it’s easy to get swayed by the echo chambers on social media.

One week, the headlines scream the market is tanking. The next, they tout we’ve reached the bottom. The reality is far more nuanced.

Oh, the market is tanking, and here’s why.” then they’ll highlight some anomaly or make some apples-to-oranges comparison that makes zero sense, but hey, it gets clicks. They think they’re “helping” people by “warning” them about the downside of owning real estate.

While some segments have cooled rapidly, others continue to see bidding wars. Location and property type remain key. Desirable neighbourhoods in major metro areas tend to withstand downturns better. Detached homes often hold value over condos.

But those nuances get ignored for splashy, simplistic takes. “The bubble has burst!” gets more clicks than thoughtful analysis. The motivation is often less about informing readers and more about driving engagement.

As an agent on the ground daily, I aim to cut through the noise and provide valuable insights beyond the headlines. This week, here are some key trends I’m seeing:

• New condo listings have slowed for two consecutive weeks. If this continues, we could see the rate of price declines levelling off.
• The October rate hike (if they hike) won’t impact most existing mortgages. But those renewing now face tough decisions as trigger rates kick in. This could drive more inventory if owners can’t carry higher payments.
• First-time buyers searching for entry-level properties have more negotiating power than months ago. But freehold supply remains low in this segment but is well supplied in condoland.
• Bully offers and homes selling 20% over asking have vanished. But motivated buyers still pay fair value for the right home.
• Well-priced, renovated homes in coveted neighbourhoods continue to see bidding wars. Desirable properties are weathering this market better across property types.
• Condo prices are declining slower than expected, given the amount of supply. Condo owners are showing resilience in holding off listing their properties.

The takeaway? Even in a shifting landscape, opportunities exist for both buyers and sellers. But it takes an agent with local expertise to capitalize on them. The key point is that location, condition, and pricing are more critical than property type. We see pockets of strength and weakness across detached houses, townhomes and condominiums.

The markets aren’t tanking uniformly. Nor have we necessarily hit the bottom. Anyone claiming to know precisely where real estate is headed doesn’t grasp the nuances.

But those sounding the alarm also miss the mark. The reality lies somewhere in the middle, with pockets of strength amid segments declining.

If you’re considering buying or selling, don’t let the headlines sway you. Let’s connect to discuss your situation specifically. With tailored advice, you can make informed decisions in this market.

The “sky is falling” narrative may drive engagement, but it rarely paints the full picture. My weekly updates aim to provide accurate insights that help navigate this changing landscape.

Book a Consultation: Book a call directly with me for personalized advice.

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Urban Markets: Downtown & Surrounding Areas

House Average Price: $1,605,508
House Median Price: $1,425,000
673 Active Listings
61 Firm Sales This Week
Months of Inventory (MoI) 2.99 – UP from 1.82
Average Days on Market (DOM) 8.97

Condo Average Price: $821,022
Condo Median Price: $721,500
2585 Active Listings
79 Firm Sales This Week
MoI 4.82 – UP  from  3.87
DoM  22.15

 

Rosedale, Deer Park, Moore Park, Forest Hill, & Lawrence Park

House Average Price: $3,964,966
House Median Price: $3,152,500
196 Active Listings
14 Firm Sales This Week
MoI 4.71 – UP from 2.78
DoM ~ 12.86

Condo Average Price: $1,372,550
Condo Median Price: $1,380,900
283 Active Listings
10 Firm Sales This Week
MoI 4.94 – UP from 3.48
DoM ~ 24.8

 

Leaside, Davisville, Yonge & Eglinton

House Average Price: $1,862,500
House Median Price: $1,920,000
69 Active Listings
9 Firm Sales This Week
MoI:  2.75 – UP from 1.45
DoM  7.20

Condo Average Price: $847,875
Condo Media Price: $820,000
205 Active Listings
9 Firm Sales This Week
MoI 3.64 – UP  from 2.82
DoM ~ 24.50

Birch Cliff

House Average Price: $1,174,164
House Median Price: $985,000
39 Active Listings
6 Firm Sales This Week
MoI 2.38 – UP from 2.03
DoM 10.67

Kingston Rd Corridor to Highland Creek

House Average Price: $815,000
House Median Price: $850,000
116 Active Listings
2 Firm Sales This Week
MoI 3.30 – UP from 2.53
DoM 23.25

Condo Average Price: $807,500
Condo Median Price: $807,500
54 Active Listings
2 Firm Sales This Week
MoI 2.72 – UP from 2.58
DoM 18.5

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