16 Dec Market Notes: Type of homes for sale during Christmas?
The market ground to a halt this week, as Christmas is now just over a week away. The types of property that come on the market this time of the year are usually investment properties, estate sales, and/or vacant houses in need of work. Selling a home you live in during the holidays is obviously not ideal. You almost always leave money on the table. From an investor perspective, there is value to be found within these types of homes and sellers a usually more amenable to negotiation. Finding the right home within a dwindling inventory is the issue, but now impossible.
I am continuing to see some solid numbers in terms of sale prices downtown. You may notice the house I featured last week, 20 O’Hara sold for $1.05M, an unexpectedly high price given the condition of the home and time of year. It does say something about Parkdale though, and how many buyers continue to ignore the roughness around the edges and instead focus on the area’s potential. The sale prices in Roncy and Leslieville, also continue to be very strong, indicating to me that popular, investment grade neighbourhoods downtown continue to outperform the overall market.
Choosing the right neighbourhood and house moving forward is going to be more important than ever. The new reality of higher interest rates, volatility in the stock market and a slowing global economy, will mean buyers and investors will need to be more cautious. Like in the past, a perpetually rising market won’t be there to bail you out if you have to sell earlier then expected.