Unexpected Real Estate Market Twist: Low Prices Shock Sellers

Buyer here. Sitting on the sidelines, Finance in order and ready to buy, not waiting for rates to go down and no taking the summer off. I am waiting to prices to drop even more. We as buyers can see the trend going down and are not willing to buy a property that will have less value next month. The market is definitely crashing and all the little upticks are just the old dead cat bounce, a few desperate people buying. Owners waiting for market to recover will be left holding the bag. I am currently renting a nice place under rent control, rent is way cheaper than buying so i am in no hurry. Lot of buyers doing the same. Good luck selling for what you want.

I think the issue is that there are a lot of hungry agents out there prepared to take a chance on anything. They should be honest with their clients and tell them what the real selling price will be. Don't waste everyone's time.

Sellers aren't listening because many of them aren't motivated to sell. They're testing the market.

That waterfront bungalow, worth $750.000, that is it, needs work, small lot right on the road, no way

What fool would pay1 mil for that little bungalow, with no basement, lol, rent out the bunkie for $2000 per month, lol

Thanks folks. I appreciate your approach and style. We need more realists like you.

Sellers need to compete for the buyers but it takes time for the sentiment to change. There is certainly pent up demand, but at a much lower price point than sellers expect. The sellers have recency bias and are used to having all the leverage. Once people start to notice that prices are going lower and lower, you will see more competition because sellers will try to front run each so they can get a better price, and before inventory builds higher and before sentiment goes lower. How much fear sets in will be anyone's guess and depends on future policy decisions. Either way it looks likely that assets will have to adjust to the higher rates and not the other way around. The full impact of higher for longer rates has not sunk into the mass psychology yet. Any cuts now are transitory = short term relief at the expense of higher rates later.

So there is a small bungalow for sale on cheltenham for 875k . . .and you are saying a waterfront for 1.1 mil is too much !!??

How do you all calculate the fundamental value of a property?

If BOC cuts again it will only cause a MASSIVE flood of inventory to hit the market but will not restore any amount of affordability

WOW 1.4k for a bungalo in insfil. That is wild to me.

Pricing is pathetic. You can look at listings in Muskoka (Bracebridge and Huntsville) and you're seeing in-town properties listed $300,000-$400,000 over a realistic price. If you're an agent and your client says "This isn't worth $1 million, but let's leave it up for 3 years and see if anyone bites"--what's the point of taking that listing? Tell the seller to buy a 6/49 ticket and walk on.

I think buyers and sellers are waiting for realtors to get out of the picture before things start picking up again.

Love 1376 Butler It will be 500k off soon. Like it was listed in March 2022. For $999k 😂😂😂

1-2 mil, hope those are water front!

Folks, Wait it will get worse and better for buyers. I’m about to buy a house a century home in the country side for 70k and Reno it to my liking. So be patient mate. I’m also waiting for multi plexs to drop as i sold everything two years ago.. be patient… just be patient… your follow Canadian

Sellers hire friends and relatives with a license because they list the property very high and it never sells. Sellers are still dreaming of prices from two years ago when money was cheap @2%.

Love watching your vids, to see all the overpriced stuff! These people are going to get stuck or loose money! lol

i like to offer expertise in quick pro tip comments. dont mind me

Houses aren't worth the asking price. Agents do not deserve 5% of 1 million bucks. Buy at your financial peril. Selling may be the same issue if you pulled out equity.