When people realize that we are realtors, usually the first question asked is “How’s the market?”, quickly followed by “How much is my house worth?” Never have those two questions garnered more discussion and understanding than it does in our current economic climate. There isn’t an easy answer to either question without investigation and experience. However, it is safe to say we are fully ensconced in a buyer’s market, which affects the answer to the second part of the inquiry. Quite simply, the current supply of homes available on the market vastly outweighs demand. Anybody who knows anything about business will tell you that, in any market, when supply levels are much greater than demand, prices drop. Therefore, what you think your house is worth might not be accurate, and if I’m being transparent, these prices are not an anomaly; this is likely to be the norm for the foreseeable future. There has always been a lot of noise over the ridiculous prices around GTA real estate, so now it’s easier to get into the market because of lower prices.
I have said it before, and I will say it again: the most challenging aspect of our industry is balancing the emotional aspect of selling your home with the business aspect. It’s always our mission to take care of the business side while you manage the emotion. What most people fail to do is separate the two. The market is the market; this means that just because you have hosted some warm memories and put a lot of blood, sweat, and tears into the maintenance of your home, the market doesn’t care, and the value of your home won’t be affected. Renovations and upgrades will still help sell your home; they are always in high demand but it doesn’t work out to dollar for dollar. If you put $50,000 into your renovations, it doesn’t automatically add $50,000 to your selling price. It adds value, but that value circles back to supply and demand. The market dictates the value of your home, and if there are a lot of renovated, updated, move-in-ready homes available, the market will reflect that. Let’s take a look at some statistics that highlight these truths. The numbers don’t lie.
The days of multiple offers and skyrocketing prices are gone and are not predicted to come back anytime soon. Now, there are exceptions to every rule, but for the most part, the strategy of vastly unpricing your home and expecting a bidding war is not advantageous. The crazy days of Covid in the early 2020s are still fresh in all of our minds, so psychologically, sellers still believe their homes are worth what they were worth then. Take a look at the graph above. You’ll notice the average value of a home in Canada spiked in 2022. That was 3 years ago, and there has been a steady decline to more manageable and realistic levels since then. Homes are still worth 50% more than they were 10 years ago. RBC recently posted that the Canadian real estate markets are starting to rebound from some historical lows at the beginning of the year; however, “markets in Southern Ontario and parts of B.C. – the country’s least affordable areas – remain especially soft. Activity is close to cyclical lows and will take time to rebound to more robust levels.” The graphic below is a stark reminder of where we were and where we are today. The total number of sales in Canada spiked to over 750,000 in the first quarter of 2021. Juxtapose that against April 2025, where the were fewer than 450,000 sales. For context, look at the 3rd quarter of 2022 to the first quarter of 2023, this was the time of rising interest rates, which caused widespread fear and halted the market in its tracks.
It’s not all doom and gloom. Home resales were up 8.4% from April to May which is the sencond monthly increase in a row. Where is the silver lining? Quite simply, It’s a great time to buy! There is more selection and less buying competition, putting the leverage smack dab into the buyer’s hands. Average home prices are down 4.5%, which means you’ll get less when you sell your home, but you’ll get a lot of value for your dollar when you purchase. If you are interested in investing, now is the time! Buy low, sell high! We are steadily moving towards a more balanced market. The window to buy and upsize won’t be this unbalanced for long. It won’t automatically flip to a Seller’s market. Come the fall, we should be entering into a more balanced market. What happens from there is anybody’s guess. Don’t wait if investing or upsizing is your plan. Take advantage of the market when the conditions are right for you. Lean on the knowledge and experience we provide and alleviate some stress by letting us manage the business end. You’ll appreciate our hands-on approach to customer service and our dedication to providing everything you need and desire. Reach out to Tate Homes today and take the first step towards your dream home!
