Thinking real estate? Be patient

I ran into Janet in late January. A couple of years ago, she was priced out of the market, frustrated by bidding wars and properties selling for tens of thousands over asking. In late January, she noticed condos were staying on the market for weeks. I showed her some, and now the sellers’ realtors are calling me to say the sellers are willing to negotiate. This is the first time in many years that buyers can genuinely purchase the home they want without overextending themselves.

What Janet experienced is not unique. Across the Greater Toronto Area, I’ve observed the same trend. Sales have declined sharply, inventory has increased, and homes that would have attracted bidding wars two years ago are now sitting unsold for weeks. Buyers aren’t rushing to waive inspections or offer large deposits just to stay competitive. They are taking their time, asking questions, and arranging proper financing.

Investors are returning. One of them, Marcus, told me he’s seen condos drop 15%-25% from their peaks. “I’m not trying to flip,” he said. “I want something that will bring cash flow and appreciate over time.” He’s looking near transit, in neighbourhoods with strong fundamentals, not chasing hype. Buying an investment property isn’t a get-rich-quick scheme, but for someone like Marcus, who is thinking long term, the numbers are starting to make sense again. If you are buying condos, choose the best location in older buildings with larger suites and good reserve funds.

Just because prices have softened doesn’t mean everything suddenly becomes affordable. Know your budget and don’t stretch yourself to get through the door. Janet is taking her time. She’s comparing neighbourhoods, crunching the numbers, and not rushing simply because there is less competition. The market now rewards patience, not panic.

Toronto’s market has cooled, and for buyers like Janet, that is a good opportunity. Carefully crafted deals now could create real wealth in the future. For the first time in years, buyers truly have a chance to grab them.

There are many excellent real estate deals available. If you’re an investor, look for homes in desirable neighbourhoods with spacious lots. Some of these properties require renovations and have been on the market for an extended period. Buyers can purchase them at a lower price, renovate them, and rent them out rather than sell. Once upgraded, the property’s appraised value will increase, which boosts your borrowing capacity. This way, you acquire both the property and the income it generates.

Many sellers are opting to sell because affordability is a challenge. They prefer to stay in their local area and would rather sell their homes at a discount to investors who can keep them as tenants. Twenty years ago, I bought a property, and the previous owners became tenants. Today, the previous owner is still living there and paying rent. This creates a win-win situation for both parties. The previous owner used the proceeds to buy a business, and I secured a great deal with excellent tenants.

Buyers can benefit from distressed properties, such as vacant homes, handyman specials, and properties from divorces and estate sales.

Homeowners who are mortgage-free can also tap into their home equity to assist their children in buying a home. Recently, I met a family with four adult children. They have completed their education, secured employment, and are earning a good income. They wanted to buy a home but lacked the down payment. Their parents took out a $400,000 mortgage on the family home and gave each child $100,000. Each of the four children purchased a condo. Their parents told me that by doing this, they are helping their children to own property. Now that each child has financial responsibilities, they are more cautious with their spending.

GTA is a diverse city with a large immigrant population, and its population is expected to continue growing. The demand for housing will remain strong. The market should bounce back in about five years, and anyone investing in real estate now is likely to see substantial profits.