Frustrating has been the only way to describe the Toronto market in recent months. Before July of last year, you could bet a pretty penny that if you were going to be placing an offer on a property of any type, you’d be entering a bidding war. Then mortgage rules tightened, and sales were much slower than they had been in recent months. Bidding wars seemed nearly non-existent, yet prices remained high. Those wars saw a small emergence in late winter, during about January of this year; and yet, prices remained high. But once again, things seemed to have cooled. Sales are stalling; and prices are high. And right before the spring market.

So, what’s going on exactly? When will prices come down? And when can we expect to see a typical market once again?

The answer really lies in home prices. The average single-family detached in Toronto right now is selling for about $650,000 – and that’s not your large spacious family home you may have grown up. That’s often for a single detached that still involves cramped quarters, and projects that require a bit of work. Sellers simply aren’t willing to come down just yet, it doesn’t seem, from the high those in their shoes had been enjoying a year previously. The cooling period is definitely hurting sellers the most; and one can’t blame them for wanting to get the most out of their property.

The problem is savvy buyers on the market today. Buyers who know just how much the market has cooled, and just how desperate sellers will eventually become. Desperate enough anyways, to sell their home for market value once the market corrects itself.

For those sellers though, there’s still little bad news. No, you may not enjoy those huge profits from selling your home that sellers were enjoying last year at this time. But it’s likely that you’re not actually losing money either. And, if you’re like most Toronto homeowners with a typical Toronto property, even if you sell once the market has fully corrected, you’ll most likely still break even after considering what you paid for the property, if not profit a bit.

Not so bad to wait.

For buyers that are anxious about getting into the market, yet frustrated that those sellers aren’t yet lowering home prices to their satisfaction, waiting is also not such a bad thing. The longer you wait after all, the sooner sellers will be forced to bring their prices back down to normal market levels. And, while you’re waiting you can also save up more for that down payment, giving you a cheaper mortgage – and potentially one without expensive mortgage insurance – in the long run.

Really not so bad to wait.

Frustrating is definitely a good word to describe the Toronto market today – whether you’re a buyer or a seller. But patience is of huge importance when you’re part of the real estate market, and that’s never been truer than it is today. It is truly a virtue and if you can be just patient enough, one that will truly pay off in the end.