purchasers from the Greater Toronto Area (GTA) sought refuge from rapidly rising prices, the influx of first-time buyers into the market placed substantial pressure on the market. Sales have soared, and supply has dwindled—particularly at starting price points—and values climbed. A seller's market happens when there's a shortage of housing or more potential buyers than homes. We continue to see a seller's market as the months of available inventory remain low and most homes selling under 30 days. (2020) However, a seller's market is not a guarantee for your home to sell quickly at top dollar. On the other hand, a buyer's market occurs when there is a surplus in housing or more homes for sale than buyers. A balanced market happens when there is the same number of homes for sale as there are buyers.
EXAMPLE OF DIFFERING HOME VALUATIONS
A buyer is interested in a home listed at $725,000. The online valuation determines the house is worth $750,000. Based on that estimate, the buyer offers the asking price. When a professional appraisal comes in at $700,000, and the existing tax records assess the home at $600,000, the buyer wonders why the values are so different and whether s/he overpaid. The house was listed at $725,000 because at that price, the home would sell in a reasonable amount of time. Why would the appraised value not be whatever a buyer was willing to pay? The fact that they paid $725,000 does not mean that is the true value of the home. Certain factors may weigh in — undesirable businesses located near the property, for example. Online valuations can't take into consideration the condition of the property or the qualities of the neighbourhood.
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