“Sellers continue to take advantage of high demand and record prices, while buyers struggle to find yield in competitive bid situations.”
With the arrival of the warm weather – many people ask me how the season can impact the market – both as a Buyer and as a Seller. While it is true that things move a little slower in the summer season – that does not necessarily mean it is a bad time to be a buyer or seller in the heat of the summer.
The common line of thinking for owners considering divesting their asset is that they should wait until the Fall when everyone is back to work and the holidays are over. I always challenge that theory and remind them that there could be many other property owners thinking the exact same thing. If all owners decide to list their properties in the fall, it could result in a very weak summer market, followed by an over-supply of listings your property will now be competing against.
Presently – it does not appear that seasonality will be providing relief for Buyers anytime soon. With interest rates dropping again in recent months, we have seen cap rates continuing to compress, and price per units reaching record highs.
The local market remains incredibly strong with investor demand coming from both local and GTA investors. Properties that are priced reasonably and marketed effectively are seeing multiple offers with favourable terms to the Seller. Buyers must be prepared to act quickly, as often strong Buyers will remove or shorten the conditional period in order to make their offer more competitive and attractive.
If you have any questions about the current market, your search for an investment, or you are considering selling your building, feel free to contact me anytime. Enjoy the rest of your summer!