Real Estate News

Toronto Housing Market Roars Back A Surge in First Time Buyers and Freehold Bidding Wars


Image by: unsplash

In recent months, Toronto's housing market has demonstrated a remarkable resilience, quickly rebounding from its subdued state. With sales activity steadily increasing, transactions surged by nearly 18% year-over-year. Notably, this resurgence is primarily observed in properties priced under $1.5 million, a segment largely dominated by first-time buyers. Realtor Lisa Bednarski highlights the unprecedented interest from this demographic, citing instances of intense competition, such as a listing receiving over 6,000 views and 23 offers on offer night. The resurgence of first-time buyers is a significant shift from previous years, attributed in part to speculation regarding potential interest rate decreases in the coming months.

This renewed interest in the housing market, particularly in freehold properties, has sparked what mortgage expert Jerome Trail describes as a "freehold bidding war extravaganza." With the five-year fixed mortgage rate dropping significantly, prospective buyers are seizing the opportunity to transition from condos to freehold homes, driven by factors such as space constraints and changing lifestyle preferences. However, this surge in demand is largely confined to the freehold segment, leaving the condo market relatively quiet. Real estate agent Shay Asnani observes this divergence and anticipates a potential trickle-down effect if freehold prices continue to rise.

Despite the fervor in the freehold market, some buyers remain cautious, waiting for potential rate cuts before making significant moves. However, Trail warns against trying to time the market, emphasizing that fixed-rate mortgages have already adjusted, indicating a rapid shift towards a seller's market. While some may adopt a conservative approach, Trail suggests that such hesitation could result in missed opportunities amid the evolving market dynamics. Ultimately, Toronto's housing market continues to defy expectations, driven by a combination of economic factors and shifting buyer preferences.

Read the full article on: STOREYS


YOUR HOME WORTH

home worth

Find out what is your home worth in today's market.

Get Started

FIND YOUR DREAM HOME

home worth

Get notified instantly of homes meeting your exact criteria.

Get Started
A
Amandeep Singh
Amandeep Singh
Do you have questions?
Call or text today, we are here to help!