LACKIE: Good homes that keep selling in a turbulent real estate market

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There is no doubt that the real estate market is booming.

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Some say it’s a crash of apocalyptic scale, others argue that what we’re witnessing is just a necessary adjustment following a truly shocking run. It doesn’t matter, on the one hand it looks like the ship is sinking, on the other hand there is something close to running out of fuel with no wind blowing. type scenario.

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One is a pause and the other is a plunge.

The last two and a half years have been incredibly scary. And while the course our market has taken since the mid-20s has certainly had sticky moments here and there in its upward trajectory, if you squint, it’s been pretty much a straight line of rapid rise.

What I can conclude from that is that at this point, you mostly choose your own adventures.

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Bears claim that we are far behind in making grand calculations. Years of lax fiscal policy combined with lax monetary policy, especially through the pandemic, have created a gunpowder keg that is about to be blown up in all our faces.

Bulls – Note that we make a very loud and clear distinction between people who have a bullish belief in the long-term value of real estate and real estate boosters who are never willing to sell you anything. Please – instead, as with any investment asset, downtime is sure to occur, but the idea is to hold and win for the long term.

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And as someone whose life literally revolves around real estate, it can be difficult to know what to do with it.

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But here’s what I know, working actively in this market.

things are still selling. Well, good things sell. And the expensive ones sell quickly.

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Well maintained homes with parking on good streets in great neighborhoods with good schools are still in demand. They know this because they are still selling on multiple offers. The lift may be smaller than last winter, but buyers are happy to compete.

Last week, Seaton Village’s modestly priced semi went on sale with 15 offers, 13% higher than listed.

Another semi in Midtown sold multiples on 97% of listings two days after it hit the market.

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Prices are totally softening and there’s no question that the good stuff on the market isn’t loved, but if the market crashes, I just don’t see it. is meticulous, but I was still busy working with a client whose life went on.

Every agent I know who works in central Toronto has buyers standing in the wings, waiting for inventory to improve. This is especially true for move-in buyers who hold a sizeable stake in their home and usually have a mortgage they can transfer. By their calculations, the opportunities presented by easing prices outweigh the increase in borrowing costs, which most assume will start to decline again in a few years. Most people are just waiting for some stability to return to the market.

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But the pain in the market is real, especially for those who are over-leveraged on variable-rate mortgages and struggling to keep up with payments. With no immediate signs of recovery in sight, many must be feeling increasingly hopeless. Market statistics clearly show extensive off-roading and inconsistent inventory levels. Stocks remain tight. Certainly some will have to sell, but the data don’t tell us yet.

What comes next is anyone’s guess. The keyword is guesswork.

One thing I know for sure is that families are formed, expanded, dismantled, and repeated. Life goes on regardless of economic forecasts.

@brynnlackie