E
conomist Robert Kavcic of BMO points to sluggish economic and job market conditions, the Bank of Canada's pause on interest rates, and mortgage rates hovering above typical levels as factors dampening buyer enthusiasm in many regions. Market psychology also plays a role, with buyers hesitant due to expectations of falling prices. Southern Ontario is particularly weak, with a glut of condos driving down prices in Toronto and beyond.

    In mid-sized Ontario cities, real estate agents are employing creative strategies to secure deals. Aimee Puthon of Coldwell Banker Neumann Real Estate helped a young couple trade up by submitting an offer on a detached house in Guelph's Exhibition Park neighbourhood. The sellers accepted their revised offer after the initial buyer backed out.

    Broker Faisal Susiwala of Re/Max Twin City Realty notes that setting a date for reviewing offers is less common than in the past, but can lead to competing bids when done correctly. He sets an asking price 5-7% below his target and monitors weather forecasts to optimize offer dates. If sellers don't receive an acceptable offer on the designated date, Susiwala advises them to accept that the market has spoken.

    In higher price brackets, Susiwala aims to list properties at a price below comparable listings in the area, as this can help them gain traction quickly. He warns against listing at too high of a price, citing a case where a farm was listed for $5.5-million and eventually expired without a sale after multiple price trims.

    Buyers are holding off due to uncertainty surrounding interest rates, employment, tariffs, and politics. Some are waiting for a return to the office, while others are leaving the area to move closer to jobs. In some cases, people are downsizing in property but upsizing financially, as seen with an employee who plans to sell her four-bedroom detached house in Cambridge and buy a three-bedroom townhouse in Milton.

    In the new home segment, builders are cutting prices on houses in various stages of construction to exit the market or break even. People are reluctant to buy from plans, so builders are sometimes completing projects to allow buyers to walk through finished homes.