The sudden shift in the Greater Toronto Area’s real estate market has home buyers breathing a collective sigh of relief …unless you happen to be among the hundreds who purchased a home in the weeks leading up to the change. While many experts say that this “gentle correction” is long overdue, there is one particular group of buyer/sellers who are not jumping for joy.
Numerous families and individuals who purchased homes during April or May of 2017 have now found themselves in a precarious position, with a high-priced new home in one hand and an existing home that they are unable to sell in the other.
Panic Cools the GTA Real Estate Market
The government of Ontario’s market-cooling plans, and the near-collapse of Home Capital Group Inc. has resulted in potential home-buyers taking a big step back from the market. Incredibly poor timing, if you ask someone with a now desperate need to sell.
During early spring when the GTA real estate market was at its hottest, risky real estate tactics, such as buying before selling, offering multiple thousands over asking, and waving all conditions became the norm. However, now, as the market cools, those tactics have left these buyer/sellers in a very tough spot.
Homes that would have been snapped up within one or two days on the market, are now languishing for weeks on end, with no offers in sight. Open houses are seeing a significant drop in attendance, and seller panic is settling in. Many of these sellers were counting on fast sales and high prices to fund the purchase of their new home. However, tragically, there are now hundreds of Ontarians in the terrifying limbo of dual home ownership without a clear view of how things will end.
An epidemic of home buyer’s remorse has taken hold from Cambridge to Oshawa. In fact, this market shift has resulted in some buyers walking away from their deposits and choosing not to close. However, experts warn that the loss of a deposit isn’t the only repercussion of choosing not to close. Along with losing thousands of dollars, buyers who walk away also run the risk of litigation.
Local real estate experts say that the key is not to panic. While sales have slowed considerably, buyers are still out there. It’s just a matter of being patient and putting more effort into preparing your house for sale.
Unfortunately, the real heartbreak in the situation is that after months upon months of lost bidding wars, for these now desperate homeowners, selling their home was supposed to be the easy part.
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