LACKIE: Buyers in driver’s seat amid real estate rough seas

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Last week, I was hit back when I suggested that while the housing market was clearly on the verge of a major correction, life and real estate continued.

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No, I wasn’t making money for my industry.

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Yes, I absolutely believe things are still rough and getting rougher.

But what’s remarkable to me is the fact that even amidst all the terrifying headlines and well-founded doom and gloom, there are still real estate deals going on in this city. The who, how, and why have changed from the ‘who, how, and why’ that drove a wild marketplace that already feels like a distant memory, but we don’t know who we are. . Seeing should be written off as an anecdotal outlier.

Compared to this time last year, trading volume has halved. Interest rates are now at levels unthinkable less than a year ago. New homeowners are stressed, prospective homebuyers are upset, and everyone else is trying to understand how much they need to worry.

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Yes Yes Yes.

But here’s what I’m observing in real time. Buyers are absolutely still there.

Our trading volume may have halved, but what was truly a record level, the other half isn’t trivial. Maybe it just feels that way.

Case in point: Last week we listed an adorable home in a neighborhood in central Toronto. Last winter must have been a panfight.

I didn’t know what was going to happen. So I didn’t leave anything to chance. We made her shine and spent big bucks staging her. Her photo was perfect. we did it all

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I also spent a lot of time managing expectations. All we need is her one buyer, I explained to the client.

I never imagined it would be a group of 25 coming to the open house enduring the miserable cold. And these weren’t just people killing time on Sunday. . The same buyers who seem to be driving prices down or debilitating for fear of catching falling knives.

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Offer Night brought in 4 offers. But unlike the night of the offer a few days ago, these prospects weren’t brandishing bank bills armed with letters to sellers. they were cool They had conditions. And the numbers were conservative. even in competition.

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The house sold for less than we expected, but with four offers the market spoke clearly and the client was happy to listen.

And this experience is consistent with what I hear from my colleagues. Buyers who are still there will join for the right price. They will come forward when they are ready. No FOMO. They certainly offer things, but walk away if it’s not right for them.

And this is how prices continue to fall.

Yes, the market is slowing, but I wonder if the stagnation is due to stalled sellers determined to wait out these adverse conditions.

I suspect that once the acceptance of the reluctant new-new-normal calms down, inventory will increase and sales volumes will increase. But I’m sure it will be quite some time before the seller leaves the table feeling like a hero again.

@brynnlackie