in our free newsletter.

Thousands benefit from our email every week.

Approaching a balanced market

Shay Asnani, a realtor with Right At Home Realty, has seen the shift first hand.

“Things have definitely slowed down,” says Asnani. “I've noticed it more in the suburbs, where we're seeing bigger price drops with comparable properties that sold two, three months ago. Now the house down the street is selling for $200, $300,000 less.”

More from Moneywise

Being continually outbid when the market was hot proved too much for some potential buyers. Now that things are stabilizing, a new hope is emerging.

“I actually have a couple that I was working with, back when things were crazy,” observes Asnani. “They got a case of buyer burnout. It’s really discouraging and emotionally exhausting when you lose multiple times on homes that are getting 20-25 offers.”

The shift in the market trend is leading to renewed optimism in potential buyers.

“They're starting to feel like they might be ready to pick things up again soon. Because there is room to negotiate with sellers. And you have time to kind of think of things and do a home inspection.”

Good credit is important for your financial health, and Borrowell can help you take a turn for the better. Sign up for Borrowell to get your credit score and credit report for free!

Sign up

The value of your dollar

As a buyer, you may find that your dollar has more weight now than it did six months ago.

Asnani notes that while markets like Toronto have historically “been pretty good at riding out dips,” the suburbs are normalizing, providing more opportunities.

“For the general average suburban house, for example, or condo, a lot of agents have just been strategizing with pricing in line with what recently sold and listing around that.”

This balancing act indicates a stabilization in prices that allows buyers to be more patient with their bids.

Approaching the market as both a place to live and a long-term investment allows buyers to avoid the “fear of missing out” that was so prevalent a few months ago. In Asnani’s opinion, it’s important “not to worry too much about timing it, just [focus] on finding something that's a good fit for you.”

Bidding farewell

As the market is settling, you can anticipate fewer bidding wars, with sellers more frequently listing properties at the price they hope to actually get for their property.

“People are just kind of listing around the price that they want, and so they're just taking offers anytime versus holding them back for a particular date.”

This is not to say that bidding wars are not occurring, but Asnani witnesses it happening more with properties that are “really special and really unique. And that would be like a big target for a large pool of buyers.” These properties will often hold open houses over a period of time, while only accepting offers on one specific date.

In Asnani’s opinion, this change in approach is a benefit for buyers.

“It's nice for [them] to be able to get a bit of a break, and you know, take their time to do extra due diligence.”

Being able to put in conditions of sale — for instance having the room to put in a financing clause or the requirement of a home inspection — is something that’s a benefit for both the buyer and the seller.

Asnani notes that “if your buyer puts in a financing condition, that's just solidifying the chance that on closing, they'll actually be able to close.”

Get a $25 bonus when you open and fund your first Wealthsimple Investment account* (min. $500 initial deposit). Trade and Cash accounts are not eligible. Sign up now to take advantage of this special offer.

Get started

Time is on your side

As the market starts to dip, the temptation is to hold off on making an investment. You may want to see how low things will go before you make an offer on a home.

While this strategy is tempting, Asnani feels that it’s not always the best approach.

“If you’ve got the luxury of time, then definitely wait and see how things play out as the rate hikes bake in. But if something catches your eye and is the ‘one,’ now is certainly not a bad time to make the jump.”

The fact of the matter is that investing in a property is investing in a home. If you’re looking for a place for you and your family, you want to ensure that it’s a functional, livable place for you.

Being afforded the opportunity to have a home inspection and to include things like financing conditions ensures that the space you will be purchasing is suitable to your needs and budget.

As Asnani observes people should treat their homes as “a longer term investment and understand that within their five-year mortgage term, there's going to be some ups and downs.”

By approaching a home purchase with this philosophy, you can remain confident that you’ve made the best choice for your needs, while at the same time remaining confident that you’re getting a good return on investment.

You're 5 minutes away from the best mortgage

Searching for your perfect mortgage shouldn’t be hard.

Homewise is an online brokerage that will negotiate on your behalf with more than 30 big banks and other lenders, completely free, and it only takes five minutes to apply.

If you're in the market for a new mortgage, or if you're looking to refinance before interest rates rise again, go to Homewise now and answer a few simple questions to get started.

What to Read Next


The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.