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It’s a Buyer’s Market and that can mean more opportunity! In every real estate cycle, there are winners and losers. While a soft market – characterized by more listings, longer days on market, and tempered prices – may raise concerns for sellers, they often present excellent opportunities for buyers. If you're considering purchasing a home, here's why a soft market might be the best time to make your move. What Is a Soft Real Estate Market? A soft market occurs when housing supply exceeds buyer demand. This can be due to poor economic conditions, political uncertainty, rising interest rates, seasonal slowdowns, or shifts in employment trends. The result? Prices tend to stabilize or decline, while properties stay on the market longer. Top Opportunities for Buyers 1. More Negotiating Power In a hot market, bidding wars usually leave buyers with little room to negotiate. But in a soft market, sellers are more likely to entertain lower offers and negotiate on price. 2. Greater Inventory to Choose From With more listings and slower turnover, buyers can take their time, compare homes, and choose a property that best fits their needs without rushing. This leads to better-informed decisions and less buyer’s remorse. 3. Less Competition When demand cools, so do the frantic bidding wars. This means fewer multiple-offer scenarios and a higher likelihood that your offer will be accepted – often below the asking price. 4. Better Ability to Perform Due Diligence With less competition and more leverage, a soft market provides buyers more opportunity to include necessary conditions allowing them to complete home inspections, septic inspections, verify zoning, confirm insurability with their insurer, and more. 5. More Flexible Closing Terms Sellers eager to move may be more open to flexible terms, whether it’s a longer closing period or including furnishings or repairs as part of the deal. 6. Opportunities for Investment If you're a real estate investor or looking for a long-term opportunity, a soft market can be a great time to pick up rental properties or future resale homes at a discount. Tips for Buyers in a Soft Market Get pre-approved: Having your financing in place strengthens your negotiating power. Work with a knowledgeable agent: Local expertise is crucial in spotting good deals and navigating shifting conditions. After all, market conditions can vary from one community to the next. Don’t be afraid to negotiate: Everything from price to repairs to timelines can be on the table. You might even have success including a condition on sale of your existing property. Don’t skip due diligence: Even in a buyer-friendly market, get inspections, review comparables, and make sure you're buying a sound property. Final Thoughts A soft market truly is an opportunity. While many may retreat to the sidelines, savvy buyers can take advantage of less competition, lower prices, and motivated sellers. If you're financially ready, chances are this could be the ideal time to find your next home or investment property. Even for those with property sell, they’d be wise to recognize all the advantages of buying their next property in a soft market. Sure, the sale price of their existing property may be a bit lower than desired, but if timing the sale and purchase closely together, these transactions are likely happening under the same market conditions with there still being opportunity on the purchase. GET IN TOUCH As your trusted resource for all things real estate, we would be more than happy to provide you with additional insight on how to best prepare for buying or selling real estate. If you have any questions about the market, please reach out anytime. Want a better real estate experience? Call the Giles Team, we are always happy to help. NOT RECEIVING OUR NEWSLETTER? Send us an email so we can add your name and address to our monthly mailout. We look forward to connecting DK and Amanda
The Current State Of The Market While it always makes sense to focus on what’s happening in your neighbourhood, this month we are sharing a broader view as we think it’s also important to be mindful of the market at large. As of May 2025, Ontario's real estate market is experiencing a notable shift, characterized by increased inventory, moderated price growth, and evolving buyer dynamics. Here's an in-depth look at the current landscape: Market Overview: Transitioning to a Buyer's Market Ontario's housing market has seen a significant rise in inventory. As of the end of April 2025, the number of active residential listings surged by 28.8% year-over-year, reaching 66,952 – the highest April level in a decade. In fact, active listings in April 2025 were 53.3% greater than the 10-year average for the month of April. Also noteworthy is that new listings in Ontario are also trending higher. For April 2025, new listings were 9.7% higher than the 10-year average for the month of April. In contrast to rising inventory, residential sales in Ontario have dipped significantly with a total of 14,244 sales in April 2025. This figure is 20.2% lower than April 2024. It’s also 30.7% under the 10-year average for the month of April. What do all these numbers mean? Provincially, it’s a Buyer’s Market with 4.7 months of inventory as of the end of April 2025. This slowdown reflects cautious buyer sentiment amid economic uncertainties as an international trade war continues to impact Canada. Price Trends: Regional Variations Despite the cooling market, average home prices in Ontario have remained relatively stable. As of April 2025, the average home price was $859,645, a 4.8% decrease year-over-year. However, regional disparities are evident: Oakville: Average sale price down 4.6% to $1,513,732. Burlington: Average sale price increased 2.4% to $1,178,724. Toronto: Minimal change, a dip of just 0.6%, to average price of $1,144,977. Hamilton: Average sale price decreased 3.2% to $791,384. GTA: Average sale price at $1,107,463, down 4.1% year-over-year. Affordability and Buyer Sentiment Housing affordability remains a significant concern. Desjardins Securities projects that affordability, already at a near four-decade low, will not show significant improvement for at least the next two years. While anticipated Bank of Canada rate cuts are expected to reduce mortgage debt costs, they may also drive home prices higher, potentially offsetting affordability gains. Further, economic uncertainties, including trade tensions between Canada and the United States, have further dampened buyer confidence. Market Outlook for Buyers and Sellers Looking ahead, the market is expected to remain in a buyer-friendly position, with increased inventory providing more options for purchasers. However, affordability challenges and economic uncertainties may continue to influence buyer behavior. Prospective buyers and investors should stay informed and consider regional variations when making decisions in Ontario's evolving real estate landscape. For sellers seeking a successful sale in a reasonable timeline, it’s critical to stand out in a larger pool of available inventory. To achieve this, a strategic approach, including staging consultation, needed repairs completed, deep cleaning, and decluttering is critical. It also means being finely tuned into local pricing in your community. An overpriced property will languish on market when more competitive options exist. GET IN TOUCH As your trusted resource for all things real estate, we would be more than happy to provide you with additional insight on how to best prepare for buying or selling real estate. If you have any questions about the market, please reach out anytime. Want a better real estate experience? Call the Giles Team, we are always happy to help. NOT RECEIVING OUR NEWSLETTER? Send us an email so we can add your name and address to our monthly mailout. We look forward to connecting DK and Amanda
The Power of Pricing: Why It Matters When Listing Your Home When it comes time to sell your home, there are plenty of factors to consider – curb appeal, staging, marketing strategy, timing – but perhaps none is as crucial as pricing. Set the right price, and your home can generate interest, spark bidding wars, and sell quickly. Get it wrong, and your listing may languish on the market, costing you time and money. Here’s why pricing your home correctly from day one is so important – and how to get it right. 1. First Impressions Count The first few days your home is on the market are critical. This is when interest is at its peak, and buyers and agents are scanning new listings closely. If your home is priced right, it can draw strong attention, often leading to multiple showings – and sometimes even multiple offers. Overpricing in those early days can cause your listing to be overlooked entirely. Buyers might assume you’re not serious about selling, or worse, that there’s something wrong with the property if it doesn’t match the value of comparable homes. 2. The Danger of “Testing the Market” Some sellers believe they can start high “just to see what happens” and they “can always drop the price later” if needed. While this might seem logical, it usually backfires. A property that sits on the market too long becomes stale. Buyers may begin to wonder why it hasn’t sold and assume it must be overpriced, flawed, or that the seller is unreasonable. Even when you reduce the price later, that initial spark of interest is hard to reignite. In fact, homes that are price-reduced often end up selling for less than if they had been correctly priced from the start. 3. Buyers Are Educated – and Have Options Today’s buyers are savvy. With tools like Realtor.ca, apps like HouseSigma, and MLS access through their agents, they can instantly compare your home’s price with similar properties in your area. If the market is soft and inventory is high (as we’ve seen recently) buyers will simply move on. But, no matter the market conditions, if your price is significantly higher than others with comparable features, it’s unlikely your house will be on buyers’ radar. Pricing your home in line with (or just slightly below) market value creates a sense of urgency. Buyers may fear missing out, which can lead to quicker offers – and sometimes even competing offers. 4. Appraisals Still Matter Even if you manage to attract a buyer with an aggressive price, that doesn’t guarantee a done deal. Typically, transactions involve a lender, and that lender will quite likely require an appraisal. If your home doesn’t appraise for the agreed upon price, the deal can fall apart – or it’s quite possible you may be forced to renegotiate. Pricing accurately from the beginning helps avoid surprises during the appraisal process and keeps your deal on track. 5. You Can Still Maximize Your Profit Correct pricing doesn’t mean leaving money on the table. In fact, it often does the opposite. A well-priced home draws more attention, more showings, and more offers. With increased demand, you’re more likely to get a full-price offer – or even above asking. The goal is to position your property so it stands out as a great value, not just another overpriced listing. How to Find the Right Price Pricing isn’t guesswork – it’s strategy. Here are a few steps I’ll employ to help nail it: Prepare a Comparative Market Analysis (CMA) Review recent sales in your neighbourhood with similar square footage, layout, and features What’s happening in your neighbourhood – does it have more or less available inventory than the broader market, and how does this compare to the recent number of sales? Evaluate current competition – how does your home compare to what’s already on the market? Adjust for unique features (i.e. pool, view, upgrades) that add or subtract value Consider market trends – is it a buyer’s or seller’s market? Be mindful of other factors such as seasonality, interest rates, elections, political factors, and more Working with a trusted real estate professional who knows your local market and has a proven track record of successful pricing strategies is likely to result in an accurately priced listing that sells quickly. Selling a home is both an emotional and financial decision, and pricing it correctly is the cornerstone of a successful sale. Don’t let sentimental value or wishful thinking cloud your judgment. Instead, rely on data, expert guidance, and market insights to find the sweet spot that gets your home sold – quickly, confidently, and for the best possible price. Remember: you only get one chance to make a first impression. Make it count – with the right price. GET IN TOUCH As your trusted resource for all things real estate, we would be more than happy to provide you with additional insight on how to best prepare for buying or selling real estate. If you have any questions about the market, please reach out anytime. Want a better real estate experience? Call the Giles Team, we are always happy to help. NOT RECEIVING OUR NEWSLETTER? Send us an email so we can add your name and address to our monthly mailout. We look forward to connecting DK and Amanda
