Sudden Influx of Properties For Sale In Toronto | Refresh Financial

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Buyer’s Market? Why There’s Been A Sudden Influx of Properties For Sale In Toronto

house keysIt seems like just a few weeks ago, we were telling you about the limited supply of houses for sale in Toronto. Torontonian homeowners were hanging onto their first-time properties because getting into an upgraded home felt near impossible. Every house sale ended with the buyer winning a bidding war and the house going for well above asking. With house prices as high as the sky in southern Ontario, above asking was way out of reach for most Canadians.

This week, however, homeowners in Toronto appear to have flipped the switch on us. Real estate agents in Canada’s biggest city are reporting a sudden influx of houses on the market. Just a few weeks ago, buyers had no options. This week, it seems they can have their pick. Houses in Toronto are going up for sale faster than you can say, “I’ll take it!”.

So, what’s caused the sudden change in the real estate market in Toronto? Why the sudden jump in numbers of properties for sale? Speculation has it, they’re just trying to unload their property while prices are high. They’re cashing in their chips before it’s too late.

Canadians have been muttering about the “bubble bursting” for some time now, which we talked about here. And as the prices soar, the more paranoia is going to set in. Imagine it for yourself: your modest home that you bought for a modest price has been increasing in value so fast you can barely keep up with it. It just keeps soaring higher and higher and as more and more people around you speculate about the bubble bursting, you figure the price isn’t going to soar like this forever. You wonder if the price is going to fall. You have to guess when the exact right time is to unload your most valuable asset so you can walk away with the most return on your investment possible.

It’s not easy to know when the perfect time is. In fact, no one can really know. But many Torontonian homeowners seem to think the time is now, and if they don’t sell soon, they’re going to lose out on the highest possible sale price on their home.

The strange thing is though, real estate agents in Toronto are reporting that they have seen some prices fall as a direct result of the sudden flood of homes for sale in Toronto. All these Canadians looking to cash in on the high cost of housing could, inadvertently, be the cause of the bursting bubble they so fear.

What do you think? Do you think more homes and dropping prices is a good thing? Let us know in the comments!

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