New Year, New Market—Top 6 Tips for Buyers in 2024
The ups and downs of the 2023 Toronto real estate market were rough to say the least. According to the Toronto Regional Real Estate Board, there was an average selling price dip of 5.4% compared to 2022. On top of that, the number of houses sold decreased by 12.1%! Though this may be a challenging hurdle for sellers, we strongly feel that the beginning of 2024 presents a fantastic opportunity for buyers to get a real “deal” before the market shifts again. So, we thought we’d give buyers our top 6 tips for purchasing their dream home in 2024.
1. Interview your potential realtor early on.
The faster you can get the ball rolling, the better. Sometimes, buyers spend months and months browsing on their own without reaching out to a realtor. If you do that now, you might miss your opportunity to take advantage of the current buyer’s market. To help you build a successful foundation for your home buying journey and create a timeline that suits your needs. It’s best to start interviewing realtors as soon as you decide to start searching.
2. Get pre-qualified.
Reach out to your potential mortgage provider and see if you’re pre-qualified. This will help you to understand your spending potential from the outset and will help ensure you can get a hard pre-approval when you’re ready to start putting offers on the table. Many pre-approvals require you to close on a property within 120 days, so starting with a pre-qualification gives you some space to take your time.
3. View a property more than once.
Capitalize on the slower market right now and try your best to see a property at least twice before making an offer. It’s especially important to plan your visits at different times of the day to get a full understanding of the space in all lighting.
4. Be ready to move quickly.
Though the market is a little slower at the moment, a quiet market can quickly turn so you need to be prepared. We’re not advising you rush into a decision or move too fast if you don’t feel ready, but if you find something you like, you may not be able to sit on the decision for ages.
5. Beware of your risks and rights with tenanted properties.
With variable mortgages and high interest rates, many landlords were unable to make ends meet last year. This has led to an influx of tenanted properties for sale. There may be opportunity to capitalize on a purchase price if you’re willing to undertake the risks of purchasing a tenanted property.
6. Don’t wait too long for interest rates to drop.
Even though interest rates continue to stay high, and we anticipate that they will come down, the prices of properties are reflective of the fluctuations. If you’re waiting for interest rates to come down, keep in mind that simultaneously the price of properties will likely go up.
We’re so excited to see what 2024 brings in the Toronto market and are more than happy to chat about your options as a buyer. Between the two of us, we have years of experience navigating the intricacies of GTA buying and selling, and are looking forward to hearing all about your goals for the new year. Get in touch with us today to discuss your upcoming real estate adventures.
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