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1. Low housing inventory and bidding wars continue to rule the day.
Despite my best efforts, a lot of Buyers took a house hunting break this summer and will return to the market in droves in September. The vicious cycle where Sellers want to find a house before putting their own up for sale will continue, and low inventory will plague us all. Boo.
2. Buyers recognize the opportunity of the townhouse.
With the average detached house in Toronto selling for over $1 million now, I predict smart Buyers will flock to townhouses. They’re in great locations. They’re significantly more affordable. They feel like a house. And the maintenance required is just so much less. Townhouses for all!
3. The as-is-needs-a-complete-gut-job house becomes one of the hottest commodities out there.
Just a few years ago, contractors/flippers didn’t participate in bidding wars because it just didn’t make financial sense. But with housing inventory so low, contractors have been out-bidding each other for some of the nastiest houses out there – if for no other reason than to keep their work crews busy. I expect this trend to continue this fall (which on the bright side, should mean some nicely renovated houses will hit the market in the spring). If you’ve got a needs-a-reno house, fall is a great time to put it on the market.
4. The bully offer reigns supreme.
I predict that Buyers who’ve been in the market throughout the year aren’t going to sit back and wait this fall – when they fall in love, they’ll move in swiftly and offer big bucks to avoid bidding wars. We normally only see bully offers as the season comes to an end, but I predict we’ll see them from Week one. Smart Buyers work with smart agents who know how to get you the house you want.
5. Well Hello Condo…it’s nice to see you again.
After a few years of slower growth, the condo market has been on fire for the last few months and I expect to continue to see that trend throughout the fall. As it becomes less and less affordable to buy a house, a lot of Buyers are turning to condo living. Condos aren’t just for singles anymore – we’re seeing lots of families taking the leap. Condo sales in August were up 14% and we found ourselves in more than a few bidding wars this summer..for CONDOS! It’s been years since that’s happened.
6. Smart Sellers realize they don’t ALL have to list the week after Labour Day.
The week following Labour Day is usually a crazy one for listings – home inspectors, photographers and stagers can attest to that. The good news is that the fall market usually extends into November, so there’s plenty of time to get your house on the market.
7. Interest rates will stay where they are, prices will go up.
With all the uncertainty in the world, Canada in an official “recession”, oil prices down and the stock markets in turmoil, I suspect we’ll see the Bank of Canada maintain its low interest rate. One of the big banks will likely offer a super low rate in the next couple of weeks (and as usual, this will be followed by the other banks). My vote is BMO leads the pack again. And with tight inventory and eager Buyers, prices will continue to increase. Sorry.
8. Lofts will be on fire.
No, not literally. We haven’t had many great authentic loft listings this summer and there are a lot of Buyers out there just waiting to pounce. If you’ve got a hard loft, get in on the market stat (of course we can help with that).
9. The BREL team will kill it.
While our team has been having a record year, we’re primed and ready for a killer fall. With our new office in the Junction, our first-ever direct mail campaign, some amazing new listings and tons of new Buyers, we’re ready. Bring it.