Everyone thinks the condo and Toronto real estate markets will end come July 1st. Not so! The market is already changing now – ahead of July 1st. The other point to note is that the market will not end come July 1st.
First there are a significant number of buyers who are waiting for the fall – with less competition and better deals. Secondly HST will not impact the resale market – only new construction!
But right now the feeding frenzy is abating. There are still a lot of deals to be written over the next couple of months. But there are considerably less multiple offer scenarios and people are being realistic about going over by just $5-10,000 as opposed to $50,000.
Also the hottest market earlier this year, $300-400,000 units, is slowing. Is that because of rising mortgage rates? On the other hand, condos over $500,000 are becoming the hottest market segment and there are still multiple offers taking place. While record sale volumes continue, have we reached the peak of the market in terms of prices? From past experience, one never knows where the peaks and bottoms of markets are reached until about two months after the fact.
Let me know what you are seeing in the market. What is still hot? Have we reached the peak?