The "Quiet" Spring Awakening

Is the Spring Market here, or not here? After noting a sluggish start to the Spring Market last week, the Toronto Real Estate Market somehow feels quiet and tight at the same time. I have witnessed numerous bidding wars this week, with properties receiving double-digit number of offers. I saw a property sell for $950K over the asking price, and even a few properties getting prices they had no business getting. So is it safe to say the Spring Market is here? Not quite; showings and open houses are still unusually quiet for a lot of our listings, and our weekly number of buyer showings is lower than usual for this time of year. It feels like I am working two completely separate markets.

On the one hand, consumer confidence is plummeting, with many Ontarians citing their biggest worry as their job/ the economy.

Source: Edge Realty Analytics

Prices at the pumps are still creeping up, and inflation is expected to trend sharply higher in the coming months. We had as many as four Bank of Canada rate hikes priced in last month (thankfully, we are back down to one).

Amid looming economic concerns, we are still seeing a segment of buyers shopping for the long haul. They are looking to buy a home now, anticipating a need for it over the next ten or twenty years. They know the market is unstable, yet shop in spite of it. Their immediate concerns for the economy are trumped by the need for a larger home or to get into a specific school catchment. They are being relocated for work and prefer not to deal with the instability of renting. Home sales are at levels not seen in 30 years. This is happening as the number of new listings is starting to roll over.

Source: Edge Realty Analytics

This Ying-Yang dichotomy of competing forces is creating a hot-and-cold market. As a buyer, you may be low-balling a house one day and competing the next. It’s making this year’s Spring Market one of the most interesting in our careers!