In 2017, house prices in Toronto were at an all time high and despite the cost, people were still buying. This is no longer the case, and some sellers would rather leave their homes sitting empty instead of accepting a lower figure.
Regardless of how popular, the Toronto housing market has never been cheap, and experts claim that this is the reason for a high demand, despite the fact the supply of housing is limited. It also appears that the available housing is not what buyers are looking for.
John Pasalis, the president of Realosophy decided to investigate why so many properties on the market are not selling. He found that there are quite a few sellers who refuse to sell their home for any less than the advertised price. Most of these sellers have already moved into a new property which means that they are not waiting for a high price because they are in financial hardship. It is clear that this is not the case, because they have managed to purchase a new property. The majority of people don’t have the resources to leave their property on the market for a year.
Pasalis goes on to explain that there is a high chance that these sellers witnessed their neighbours sell their houses at high prices during the boom in 2017, and this is why they are refusing to compromise now. This is not an ideal situation and sellers must understand that prices on the housing market go up and down. Experts can’t predict when we will see another year like 2017.
Interestingly the areas with the highest number of vacant houses experienced highest price decline in the spring of 2017. Pasalis also believes that there are a number of new build properties in these areas which could have had an influence on the increase of empty homes.
It appears that these sellers are not concerned that their houses are not selling and that they are willing to wait until the housing market picks up again. Although this is risky, there is also the chance that they could make an even bigger profit when the prices eventually do rise.
Pasalis claims that it is normal to see prices rise and fall on the housing market. This is the nature of the business and only time will tell how long these houses will remain empty. But one thing is certain, these sellers are not willing to compromise on price.
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