Time In The Market, Or Timing The Market?

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The Toronto Real Estate Condo Market

Your neighbour's dog sitter told you that the Real Estate Market is crashing. As you hopelessly wait for the next interest rate cut, or an announcement that Tariff's are no longer of concern, you have failed to analyze the current Toronto market status, and the opportunity that prevails in an ever so cyclical industry.

There are many factors that affect the Ontario (and Canadian!) Real Estate Market. Q1 and Q2 were impacted merely by the on-going Election and the fear from what tariff's could do to implode our economy, but alas- we remain ever so strong on the Real Estate Front, adjusting to consumer confidence and softening prices,The Greater Toronto Area (GTA) experienced the best home sales result for the month of July since 2021. Sales were also up relative to listings, suggesting a modest tightening in the market compared to last year. .

Often times, we are so consumed by the media frenzy, that it becomes difficult to form a strong opinion on where the Toronto Real Estate Market actually stands. You cannot compare the Downtown Toronto Condo Market to Detached homes on the Bridle Path. The problem is, an overall analysis from any given journalist is usually a broad scoped opinion.

When dialled into the Downtown Condo Market, a segment of Toronto Real Estate that I have actively transacted in, for the last 12 months- I can only emphasize the amount of opportunity here for buyers. Opportunity that we have not seen since 2021.... Remember that? When everyone lost their mind and started acquiring assets left right and center. They knew opportunity was available because EVERY headline told them so. Now that we are on the flip side of a headline, buyers are reserved, and Realtors are lacking the tools to educate their clients in a market that don't immediately transact.

Let's dive into why our market has become "over saturated". Well, those buyers I mentioned above? Most of them were investors. Buying a floor plan from a builder, and promised the investment of a lifetime. Low and behold the Pre Construction boom, that sent our Condo market "down the drain".

Now that those Condominiums have been built, occupied, appraised, and closed.... Investors began scrambling to actually close on their units, and if that wasn't possible- they tried assigning, many investors forfeited deposits, and walked away from their units, returning the asset to the builder for resale... again.

Now, the lucky investors who could afford to close? Well, they are cash negative on their asset, as the influx of inventory that hit the market, also plummeted the Average Rental cost. The "cookie cutter condo" is struggling in todays resale market. Without a functional floor plan, End - Users (who make up majority of the Buyer Demographic today) won't bat an eye at a 500 sq ft 1 bedroom unit. Instead? They are finding opportunity in larger, functional floor plans who are priced in alignment with today's market conditions.

This quote drives me insane, and I am sure you have heard it... "It's not about timing the market, it's your time IN the market" - It's a fair statement, and I don't largely disagree...Real Estate Transactions are almost entirely based on personal circumstances, and defining the right time for YOU.

Next week, we will review what the Condo Market looks like for Buyers today.

Thanks For Reading!