Buyers: 7 tips for navigating the spring real estate market

So you’re thinking about jumping into the GTA real estate market this spring. That’s exciting! But we get it, it’s also a little scary. It hasn’t exactly been a smooth ride out there lately. But becoming a homeowner is possible with solid strategies – and the right mindset. 

To help you buy a home in the GTA market, we talked to a couple of experts in the know. Here’s what Todd Armstrong, Branch Manager of Property.ca’s West GTA office, and Josh Benoliel, VP of Sales and the managing partner of our Vaughan and North York offices, have to say about the best buyer strategies for spring. 

1. Be ready to face competition for nicer properties.

With record-low inventory levels, there isn’t a lot to choose from out there. And until recently, there haven’t been a lot of buyers out there either. But as more people start their search this spring, competition is heating up. 

“Buyer confidence is growing,” says Todd. “People are getting used to the idea of buying in a higher-interest environment. And according to my go-to mortgage broker, the number of mortgage applications is WAY up, which indicates that we’re about to see a big wave of buyers enter the market. We are already seeing buyers competing for certain types of properties again.” 

2. Do your homework. 

Low prices and offer dates are back as a seller strategy – but not consistently, and not in every area. Asking price isn’t a clear indicator of value, which can make it tough to find something you can afford. There are homes that are listed at market value – on the same street as listings priced low to bring in multiple offers. It’s hard to know what to offer…or even if it’s worth making an offer at all. This is where a Property.ca REALTOR® who specializes in the area and property type can really help. 

3. Remember that every neighbourhood is its own market. 

You can’t generalize about the GTA – it’s way too big and diverse. In one area, offer dates may be the norm. In another, sellers may be listing at market rate.

And just because your buddy got a great price on a condo in Vaughan doesn’t mean you’ll get the same kind of deal in Mississauga. Market values can even differ from street to street in the same area, so it’s important to compare apples to apples – and to work with an agent who really understands what impacts the value of a specific home in a particular neighbourhood. 

4. If you love something, don’t wait. 

We had a brief period there when buyers were able to take some time looking and even make conditional offers. While that may still be true for certain parts of the city, the really great properties are getting snapped up fast. So if there’s something you really like, get in there and make an offer. And try to make it an offer with no conditions if you can – it’ll improve your chances, and the seller may be more inclined to lower the price, rather than accept your conditions. But don’t worry – making an unconditional offer doesn’t mean taking big risk, it just means meeting any potential conditions BEFORE you make your offer. 

5. Don’t just chase the shiny listings. 

Don’t want to lose out to buyers with deeper pockets? Look at the properties that haven’t been presented or marketed well. Everyone loves the places with great decor and beautiful lighting, and a home that’s been staged will often sell for more than one that hasn’t been “done up.” If you can see the potential in a place where the decor is a little dated, the pictures are terrible or the closets are cluttered, you’ll have less competition. 

6. Look at properties that have been sitting for a while. 

“If you don’t want to compete with other buyers, looking at stale listings can be a great opportunity,” says Josh. 

After the first 14 days, buyers move on to what’s new. But the reasons homes don’t sell right away can really vary – yes, there could be something wrong with it, but it’s more likely that the sellers didn’t price it right, or that it hasn’t been properly presented or marketed, or that it needs a bit of work. Sellers whose listings aren’t getting attention are more likely to negotiate. 

7. Buy whatever you can afford, wherever you can afford it. 

Low inventory has kept prices high. So how can a first-timer who isn’t independently wealthy actually buy something? By starting small. 

“Don’t be looking for your forever home right off the bat,” says Todd. “If you can scrape together enough, buy a one-bedroom in Hamilton or Dundas. You don’t have to live there – rent it to someone else and have them pay the mortgage, even if you keep living in a rental yourself. You’ll be building equity and waiting for your property to appreciate. Then, in a couple of years, you can sell it, make some money, and use that to buy something closer to what you want. It’s okay to get on the property ladder at the bottom rung – once you’re on it, you can keep climbing.”