There’s a classic saying in real estate: “Buy low, sell high.” 

The real question is—just how low can you buy? 

Welcome to the world of purchasing a home in a down market—a rare window of opportunity where first-time buyers, upsizers, downsizers, and investors alike can secure better deals, gain greater leverage, and make strategic moves that might not be possible in a red-hot seller’s market.

This could be a once-in-a-lifetime opportunity to purchase property in the GTA at a more affordable price point. With uncertainty coming at us from all angles, market conditions will eventually stabilize, and real estate values are likely to rise again, pushing prices upward across the board.

But before you waltz into an open house and start throwing out lowball offers like a game of Monopoly, let’s break down everything you need to know about navigating a market downturn effectively.

1. First, Get Your Financing Ducks in a Row

A buyer’s market means more negotiating power, but that doesn’t mean you can slack on your financing. In fact, it’s even more critical to be financially prepared because it’ll help in negotiations if you are well-qualified and ready to close quickly. 

Not to mention the Bank of Canada is currently on a cutting spree and rates are changing on a weekly basis. 

• Get pre-approved, not just pre-qualified – A mortgage pre-approval shows you’re serious and ready to move.
• Know your budget – Just because prices are lower doesn’t mean you should overextend yourself. Factor in closing costs, potential renovations, and emergency funds.
• Explore rate & term options – Interest rates are fluctuating, speak with a mortgage broker about locking in a competitive rate or considering variable options if they align with your financial goals.

If you’re looking to get pre-approved for a mortgage but aren’t sure where to begin, reach out to me. I can connect you with a reliable mortgage broker who will take the time to strategize with you and find the best options for your situation.

 

2. Read Between the Lines: Pay Attention to Listing History & Price Drops

A down market means more listings sitting on the market for longer than usual. And that’s where your detective work begins.

• Look at the listing history – Has the property been listed multiple times? Has the price been reduced? The listing history is available for the public to see. This could signal motivation from the seller.
• Days on Market (DOM) matters – Understanding the micro markets you’re considering is crucial. If a home has been on the market for longer than average, sellers may be more open to negotiation. For example, if a home has been listed for 55 days while the average DOM in the area is 36 days, it’s a strong indication that the property may be overpriced.
• Expired listings & re-listings – Some homes get re-listed to reset the DOM counter. A good agent can help you track a home’s true history and gauge seller motivation.

 

3. Negotiation is King: Work with a Skilled Agent

Yes, you can technically buy a home without an agent, but in a down market, a seasoned real estate professional is worth their weight in gold. Here’s why:

• They know how to build rapport with the selling side – This isn’t just about price; it’s about understanding the seller’s situation and crafting a winning offer.
• They can negotiate terms beyond just price – Think closing dates, deposit structures, or even including appliances and abatements.
• They prevent costly mistakes – A low price tag can sometimes mean hidden issues. An experienced agent will help you assess the full picture.

Negotiation is a crucial aspect of real estate transactions. If negotiating isn’t your strong suit, that’s perfectly fine—partner with an experienced agent who can handle it for you. Real estate negotiations require both skill and strategy. A skilled negotiator can help you secure significant savings in the long run.

4. Off-Market Deals & Assignment Sales: The Hidden Gems

A well-connected real estate agent will also have access to opportunities beyond what’s listed on MLS. Here’s where the real deals can happen:

• Off-market listings – These are properties being sold privately without public exposure.
• Assignment sales – There’s a massive opportunity in this segment of the market for savvy buyers. Buyers have the opportunity to buy a new product at discounted prices. Pre-construction buyers looking to offload their contracts before completion can sometimes offer properties at a lower price than current market values. With pre-construction sales currently at historic lows and prices trending downward, many assignment sales today are being sold at a loss, as they were originally purchased 4-5 years ago.

5. First-Time Buyers, Upsizers, Downsizers & Investors: Tailored Strategies

First-Time Buyers: Don’t Let Fear Hold You Back

A down market is your opportunity to enter the market without the stress of intense bidding wars. Plus, it’s the perfect time to secure a home you can grow into, knowing that as the market tightens in the future, the value of your investment is likely to increase by the time you decide to move again.

Upsizers: Now is Your Time to Make the Leap

This could be a prime opportunity for upsizers—selling their current property to move into a larger home at an attractive price. To make the most of this opportunity, strategize with a professional, as you may need to sell first depending on your neighborhood and financial situation.

Downsizers: Sell Strategically, Buy Smart

If you’re downsizing, it’s essential to consult with a professional. Selling a family home you’ve lived in for years can be an emotional and complex process. Ensuring your home is competitively priced will help attract buyers in a slower market. At the same time, working with an expert will help you navigate negotiations and secure the best terms when purchasing your next home.

Investors: Buy When Others Are Fearful

Smart investors know that wealth is built in down markets. Look for undervalued properties, rental demand shifts, and long-term growth potential in emerging neighborhoods.

6. Home Inspections & Due Diligence: No Cutting Corners

A soft market doesn’t mean you should get reckless. Ensure you:

• If it’s a home, always do a home inspection – Sellers might be more flexible on price, but don’t inherit their problems unknowingly.
• Review the condo status certificate (for condos) – A financially healthy building matters more than ever in a volatile market.
• Check zoning & future developments – Buying in an area slated for growth can position you for long-term appreciation. On the other hand, buying a condo with a view that’s going to be obstructed in the future can be annoying!

 

7. The Bottom Line: Seize the Opportunity Before It’s Gone

The window of opportunity in a down market won’t stay open forever. Eventually, market conditions will shift and as demand increases, this will put pressure on prices. This is your chance to buy smart, negotiate strong, and set yourself up for long-term financial success.

Whether you’re a first-time buyer, upsizer, downsizer, or investor, navigating the current market requires expertise and strategy.

If you’re thinking about buying, let’s chat—I can help you make the most of today’s market and find the best opportunities before they disappear.