According to a recent report released by Royal LePage, sales activity and appreciation in the GTA real estate market slowed in the first quarter of 2018. Luxury home sales in particular have slowed, while the average price of a condominium has increased by almost twelve percent year- over-year.
Analysts at Royal LePage have mentioned that this correction in the housing market is due to several factors — though perhaps primarily from federal and provincial intervention in the market, including the newly implemented stress tests, in addition to foreign buyers’ taxes enacted on the provincial level.
Moreover, some of the recent figures can be attributed to demographic developments. Baby Boomers are starting to downsize, which means that they may be competing with entry-level buyers for condos. In this article in The Star, Royal LePage CEO Phil Soper mentions that this type of competition might be sidelining some entry-level buyers, which, in turn, would mean that fewer people would move on to become entry-level home buyers, and so on.
However, many experts agree that this is most likely a brief slowdown in the market. Canada’s real estate market, overall, appears to be in a strong growth period, and many economic indicators point to long-term housing demand.
For buyers, though, as mentioned above, this means it can be difficult to navigate the market — and this is where a good realtor can be of service. A volatile or unpredictable market is challenging for buyers who are trying to do everything themselves, and this presents a smart opportunity for realtors to reach out and provide the kind of guidance and assistance that home buyers need and value.
In an unpredictable market, a realtor can best be of service if he or she has detailed, extensive knowledge of the neighborhoods that buyers are interested in; a realtor can steer buyers to an area that they might not have previously considered, one that might be a better fit for the buyer over the long-term. In addition, realtors are generally more attuned to the fluctuations in the market and can provide sound advice to buyers about timing, financing, and other considerations.
Furthermore, good realtors usually have strong networks, which can come in especially handy during uncertain times in the market. A realtor can make a connection for a buyer that might make a significant difference for the success of a real estate purchase.