Balance, Perspective and Plays

Market declining?  Market slowing?  Market crashing?  Numbers are down, etc etc etc.  But what’s actually going on?  I talk to my kids a lot about the ‘big picture’.  And ‘executive function’.  I use the analogy of sports quite frequently.  In baseball, when the batter hits the ball after the pitch, the opposing team needs to know the next play.  And the whole team needs to be on the same page to know what to do.  It’s the same in basketball.  The teams run plays and positions.  Soccer is no different.  This is exactly how our family functions.  And it’s how we work with our clients.  Everyone understands the ‘big picture.’  Knows their positions.  And knows the play given the market conditions and the various scenarios that can occur.  And all within the parameters of their specific micro-market.  

The doom and gloom headlines are in full force right now.  As they are typically and predictably when our seasonal market slows in the summer.  And this year the interest rate hike appears to have kicked it off a little early.  But not doom-and-gloom headline-worthy.  

Here is the big picture.  We are in our summer market.  A slower seasonal market.  Although sales are down 21% from the 10-year average, we are still well above the stagnant 2022 market.  And although the average price is down from last month, 3.8% respectively, home values are still up 3% from 2022, 0% from the flying high market of 2021, 27% from 2020, and 42% from 2019.  Therefore even though growth slowed over the past two years, overall the market is still well ahead of the pre-pandemic period. The ebb and flow of Toronto Real Estate.  

Recent supply is balancing out the current market. Balance is sustainable.  This is a good thing for all.  A balanced market should stabilize prices and create a neutral playing field for both buyers and sellers.   

To credit the importance of the numbers and details, give our Market Handbook a good read. The data is important, and the big picture is formed by extrapolating the data.  But understanding the big picture is important too.  It brings an overview and a higher-level perspective for everyone involved.  Let’s not lose sight of it by getting lost in the minutia.  

I consider it somewhat predictable to say ‘I don’t have a crystal ball, I don’t know what’s going to happen with the real estate market.’  But if I hire a lawyer, to represent me, I request their expertise and thoughts on outcome based on probability, precedence, etc.   For us, buyers are still transacting, with a sigh of relief through a recent increase in supply.  And ultimately selection. Sellers are still selling for the current market value.  Holding back offers with the intention of generating multiple offers has slowed down significantly.  We are seeing ACTUAL asking prices.  And back and forth negotiations.  

In short. Balance.    

Any questions or want to chat feel free to reach out.  

Cari and Paul