This WILL Happen over the Next 6 Months in Toronto

Summary

In this video, Toronto realtor Michael discusses key trends in the real estate market from November to May, using data from the last 20 years. He highlights a seasonal dip in new listings in December, followed by a steady rise in the spring months, peaking in May. Michael advises buyers to prepare early, emphasizing that the process from decision-making to closing can take 4-6 months. He offers a 'New Year Strategy Call' to help buyers get ahead in the competitive spring market. Overall, the video offers valuable insights into Toronto's real estate trends and strategies for success.

Takeaways

• 😀 Historical trends show that November through May consistently sees a rise in new listings in the Toronto real estate market.
• 😀 December is typically the slowest month for new listings in the Greater Toronto Area, with a significant drop in inventory compared to other months.
• 😀 From December to May, the Toronto real estate market usually sees a substantial increase in new listings, with numbers rising from around 2,000 in December to nearly 7,000 in May.
• 😀 The increase in new listings from December to May is a consistent trend over the past 20 years, with some years showing even larger jumps in listings.
• 😀 Buyers often begin their property search early in the year to align with the spring market, which typically sees more inventory and buyer activity.
• 😀 Successful buyers typically start their process earlier (before January) to avoid competition and gain an edge when listings come to market.
• 😀 It can take 4-6 months for most buyers to go from deciding to purchase to closing on a property, including pre-approval, property search, and the offer process.
• 😀 The spring market sees an influx of buyers, often motivated by New Year’s resolutions and post-holiday discussions about moving or upgrading their homes.
• 😀 The video encourages prospective buyers to start preparing before the spring listings flood the market, so they are ready when inventory increases.
• 😀 The speaker, Michael Loos, offers a 'New Year Strategy Call' to help buyers prepare in advance, ensuring they are a step ahead when new listings hit the market in early 2024.

Q & A

What can we expect in the Toronto real estate market over the next six months?

While there is no crystal ball, Michael's analysis based on 20 years of data suggests that the market will follow a predictable pattern, with a general increase in new listings from December to May, creating a busy spring market.

Why does the Toronto real estate market slow down in December?

December is historically a slow month for new listings in Toronto, as many potential sellers are focused on the holidays. Sellers may delay listing their properties until the spring, when more buyers are expected to be active in the market.

What does the data from 2004 to 2024 show about new listings in the GTA?

The data shows that new listings in the Greater Toronto Area typically hover around 10,000, with a significant drop in December. From December through May, listings tend to rise steadily, reaching around 7,000 in May.

What impact does the increase in listings from December to May have on buyers?

For buyers, more listings generally mean more choices. As more properties hit the market in early spring, competition increases, but it also provides buyers with greater opportunities to find a home.

How should buyers prepare for the upcoming spring market?

Buyers should start their home search and preparation early, ideally before the spring market kicks off. Getting pre-approved for a mortgage and familiarizing themselves with the market will help them move faster when more listings become available.

Why is it beneficial for buyers to start their process earlier in the year?

Starting early gives buyers an advantage. It can take four to six months to go from initial interest to closing a deal, including securing financing and finding the right property. Starting earlier means buyers can be ahead of the market when new listings hit in January and February.

How does the spring market affect buyers' decisions?

The spring market generally brings more listings and more competition, which can lead to quicker decision-making and potentially higher prices. Buyers who are prepared in advance can navigate these challenges more effectively.

What role do holiday conversations play in the decision to enter the real estate market?

Holiday conversations often prompt people to consider their long-term goals, such as moving to a new home. These discussions can lead to decisions to buy or sell once the new year begins, contributing to the influx of buyers entering the market early in the year.

What was the impact of the COVID-19 pandemic on the real estate market in 2020?

In 2020, the pandemic caused a temporary slowdown in March, as everything shut down. However, after the initial lockdown period, listings increased again, and the market showed resilience, though it was a unique year in terms of market behavior.

How can a strategy call with Michael help buyers get ahead in the spring market?

By booking a New Year strategy call with Michael, buyers can get a head start on the market, develop a tailored plan, and be more prepared when new listings start coming to market in January, ensuring they aren't rushing to catch up with the spring market.