Market trajectory and 5 Myths about Realtors!

Elections Over, Trump tariffs still here…where is the market going

To understand what is happening in the real estate market right now I want to give you some perspective of what a normal market is, what the crazy covid market was, the drop in 2023 and where we are trending right now.

As you know, to understand what is going to happen in our area, I tend to watch the Toronto market.  Once that starts to heat up, we are not far behind.

A normal average Toronto market will see 80k to 90k home deals (a buy or a sell) in an average year based on the last 15 years or so.  During the height of the Covid craziness when the market was just on fire that number reached 120k deals.  Then we hit 2023 and inflation which forced all those interest rate hikes which really slammed the brakes on the market.  That year Toronto saw only 60k deals…a 25% to 30% drop.  This year, with Trump tariffs, reciprocal tariffs, etc the Toronto market is on track to hit 40k deals.  A 50%+ drop compared to a normal year.  Fear and anxiety always do a number on markets.

Ok, so that’s a lot of numbers so what does it mean and how does it impact you?

It means that there are a lot of properties available, with a lot less competition to buy them.  Meaning as a buyer you have leverage on price, closing date, conditions…pretty much everything!  

So, if you’re in a situation where you’re not impacted by the tariffs (like a gov’t job, healthcare, police, fire, teacher, etc) this may be a great opportunity to get a new home at a much lower price than it was in recent years.  As Warren Buffett says, "Be fearful when others are greedy and greedy when others are fearful." 

Here’s the catch! This won’t last forever.  As more and more people come to realize this there will be more buyers out there meaning more competition and less opportunities for you.  Now that our election is over and Trump is backtracking on some tariffs things should start to get better so now’s the time if you’re looking to get the best deal on a new home.

You've decided to buy a house…Great! Now what?

If your mind doesn't immediately go to working with a REALTOR®, it should be something you seriously consider. Buying a home is a big step, especially given an changing housing market, and it's important to have a seasoned professional by your side.

There are a lot of misconceptions about the home-buying process, but at the end of the day, Realtors have the knowledge and skills to guide you and ensure your interests are protected every step of the way.

There are FIVE common myths surrounding Realtors and the home-buying process and I want to shed light on them for you.

Myth #1: I don't need a Realtor's help to buy a house

That is true.  However, while buying a house is exciting it will also be stressful and perhaps even cause some anxiety along the way. There's a lot to consider when buying a home, which is where a good Realtor comes in. Whether you are a first-time home buyer or a repeat buyer, the expert advice, guidance, and protection of a good Realtor can make all the difference.

Realtors schedule house viewings on your behalf, negotiate offers in your best interest, handle the paperwork, help coordinate inspections, and connect you with trusted professionals like lawyers, lenders, and other parties to ensure a seamless transaction.

Myth #2: The listing price is what you'll pay

The listing price is just that: the listing price. When it comes to the listing price, negotiation is key, and a good Realtor can help you understand the right price for a home and help negotiate the perfect deal.

A Realtor has been around the block enough to know when a house has been lowballed to start a bidding war, or if a house is listed too high compared to other recent sales in the neighbourhood.  Getting you the best deal is our main focus.  The more money you can keep in your pocket, the better!

Myth #3: I only need to budget for the down payment when buying a home

No, the down payment is typically the biggest sum people consider when buying a home. But how about monthly payments, like utilities, and calculating your mortgage? Or new costs, like condo fees (when relevant) and homeowners insurance? Not to mention that property tax bill that'll come once a year.

A Realtor can help you plan for the real cost of a home, and make sure you're not spending beyond your means by showing you the total investment required. You'll learn about costs like land transfer taxes, property taxes, insurance, and the outlook for monthly condo fees and potential increases.

Myth #4: All Realtors are the same, so it doesn’t matter who I work with

No, not all agents are created equal.  Similar to where you work, I’m sure you know who is average, who isn’t so hot and who are the stars.  Real estate is no different.  While all Realtors adhere to a Code of Ethics and standard of professionalism and knowledge, it's still important to find the right one for your needs.

Is the agent just the face of the team and you’ll only see them when you sign the contract and then you are shoved off to a ‘valued team member’ or will you get them and their experience.  That is why their face/name is on the sign right?  There are a lot of gimmicks in real estate and you need to look carefully to ensure that you’re picking the right one for you.  My favorite right now is the “We spend hundreds of thousands of dollars on marketing….” which is true….but have you ever heard them advertise a home?  Nope. They’re spending all that money marketing that they spend all that money, but they let you think its spent on advertising your property.  Pretty slick right? 

Myth #5: You shouldn't contact a Realtor until you're ready to buy

No.  Contacting a Realtor before you're ready to buy can actually help you get set up for when you are ready. A good agent will help you plan your budget, figure out your ideal neighbourhood, nail down your wish list, and even try to understand your lifestyle to ensure your new neighbourhood will be the best for you and what you like to do.

They understand market realities to help you make informed choices and minimize risk.  A good Realtor can get you set up for success before you're even in the market. That is when finding a home can truly be exciting and enjoyable.