Why Some Richmond Hill Homes Still Sell in a Softer Market

Why Some Richmond Hill Homes Still Sell in a Softer Market

Over the past few years, I have helped many families sell their homes in Richmond Hill. Some of them now tell me they are glad they made the decision earlier, because the market has changed a lot since the peak. Prices in many segments have come down significantly, buyers have become more careful, and homes no longer sell simply because they are located in a desirable community.

At that time, some families asked me whether they should hold on and wait for the market to recover, or sell at that point and move forward. This is never an easy question, because no one can predict the future perfectly. However, as real estate professionals working on the front line, we still need to look at the information available and give our clients the most honest opinion possible.

When we looked at the market at that time, several signals were already becoming hard to ignore. Immigration growth was expected to slow down, trade tension with the U.S. was creating more economic uncertainty, interest rates were unlikely to come down quickly, and the job market was facing increasing pressure from both a slower economy and the rise of AI. Based on those factors, my view was that the previous housing cycle had already passed its peak. Richmond Hill was still a strong and desirable community, but the market was no longer in the same upward trend we saw during 2021 and early 2022. More likely, we were entering a period of price decline or a flat market, where sellers needed to be more realistic and buyers had more room to compare, negotiate, and take their time.

Looking back, that judgment helped some sellers avoid a much more difficult situation. Selling earlier allowed them to capture stronger buyer demand, reduce carrying costs, and avoid chasing the market down later. In today's market, timing and pricing matter more than ever. A seller does not need to panic, but they do need to understand that waiting without a clear strategy can be expensive.

Today's market is very different from the peak years. There are fewer buyers, homes are taking longer to sell, and in some cases, sellers are accepting prices lower than what they could have achieved just a few months earlier. But at the same time, we are still seeing many homes sell. the real story is more specific: affordable homes are still moving, well-prepared homes are still attracting buyers, and end-user buyers are now much more important than investors. The market is not dead. It is simply more selective.

Over the past year, both condos and low-rise homes have faced pressure, but not every segment has been affected in the same way. Condo prices have remained under pressure, with Richmond Hill benchmark prices down by about 26% from the early 2022 peak. This is mainly due to oversupply, weak investor demand, negative market sentiment, and continued pressure from preconstruction completions. Low-rise homes have also dropped from the peak by about 27%, but the buyer psychology is different.

In Richmond Hill, many buyers still have a strong preference for low-rise homes. Even when some of them cannot fully qualify for the financing today, they often choose to wait, save more, or adjust their expectations within the low-rise market instead of moving their budget into a condo. Part of the reason is confidence. Many buyers I meet today do not see condos as an attractive purchase, even though condos are more affordable. They have heard too much negative news about oversupply, weak investor demand, falling prices, and unsold preconstruction inventory. Because of that, they worry that buying a condo now may not be the best move. In a softer market, they feel time is on their side. Instead of buying a condo today and moving again later into a low-rise home, many prefer to wait until they have enough budget to move directly into the type of home they really want.

However, today's weak condo sentiment does not mean condos will remain unattractive forever. It only explains why many buyers are hesitant right now. Every market has a price. If condo prices continue to adjust, there will eventually be a point where investors start to see value again, and more end users can afford to buy. At the same time, low-rise homes have their own affordability problem. Even if prices drop further, many buyers still may not qualify for the mortgage needed to purchase a townhouse, semi-detached, or detached home in Richmond Hill.

For that reason, I do not believe the story is simply "low-rise good, condo bad". In my view, both condos and low-rise homes may continue to slide at a similar pace for now. The market may only find a real bottom when condo prices become attractive enough to bring back investors and more affordable end-user demand. Once that larger buyer pool returns, it may also help stabilize the broader Richmond Hill housing market.

This is also why it is important to separate different types of buyers in today's market. Not every buyer reacts to the market in the same way. Investors are usually very sensitive to price, rent, interest rates, and market direction. Many of them prefer to buy when prices are rising because they feel more confident about future appreciation. But end-user buyers are driven more by life needs. They buy because they are getting married, having children, changing jobs, moving closer to family, needing better schools, or wanting more space. Even in a slow market, these needs do not completely disappear. That is why good Richmond Hill homes can still sell when they match what real families are looking for.

Affordability is now one of the most important themes in the Richmond Hill market. Buyers are not chasing every listing. They are paying close attention to what fits their monthly budget. In the condo market, lower-priced units have taken a bigger share of activity. In the low-rise market, homes closer to the entry-level price range are also performing better than more expensive properties. This shows a clear pattern: buyers are still active, but they are more careful. They want value, and they want something they can actually afford.

This is especially true for first-time buyers. A lot of people have rented for many years, sometimes five years or more. Because of rent control, some of them may still be paying rent below today's market level, so they were not in a hurry to buy during the peak. But now, with prices lower than before and more listings available, some of these buyers are starting to take action. They may still have limited budgets, but they are serious. They are not buying luxury homes. They are looking for practical properties that give them a real chance to enter the market.

What is interesting is that buyer affordability today is not as different from the peak market as people may think. In 2022, buyers were often accepting monthly mortgage payments in the mid-$3,000 range based on the lower interest rates at that time. In today's market, even though prices have come down, rates are still higher than before, so the monthly payment for many buyers can end up in a similar range. The main difference is the down payment. Because prices are lower now, the cash needed upfront may be more manageable for some buyers. That is one reason why certain buyers are finally entering the market.

I recently experienced this while selling a townhouse in Richmond Hill. When the property was listed at a lower price to attract offers, the showing activity was very strong. On the surface, it could easily give the impression that the market was hot and buyers were rushing in. But that was not the full story. Many buyers were attracted because the listing price looked affordable and created a sense of opportunity. Once the property was relisted closer to the real market price, the enthusiasm dropped quickly. This shows that buyer interest today is highly price-sensitive. A low listing price can create traffic, but it does not always mean buyers are willing to pay a strong final price.

This is an important lesson for sellers. More showings do not always mean a hot market. Sometimes it simply means the price looks low enough to attract attention. In today's Richmond Hill market, buyers are watching value very carefully. They may come out quickly when they feel there is a deal, but they can also disappear just as quickly when the price moves back to market reality.

For Richmond Hill sellers, this market requires a different mindset. You cannot simply expect the same price as early 2022. You also cannot assume that every buyer will overlook problems just because the property is in Richmond Hill. Buyers today have choices. They compare homes carefully. They look at condition, layout, school zone, renovation quality, location, exposure, lot size, basement use, parking, maintenance cost, and future resale value. If a home has many strong features, it can still attract attention. But if a home is average in too many areas and priced too aggressively, it may sit.

The homes that sell well today usually have something clear going for them. It could be a good school area, a practical layout, a quiet street, a renovated interior, a wider lot, a finished basement, a clean move-in condition, or a location close to transit and daily amenities. Buyers want good features, and when they are buying for themselves, they are often willing to pay a premium for the right home. But that premium is not unlimited. It must still make sense within today's market.

I recently helped a family purchase a low-rise home in Richmond Hill. At the beginning, their budget was more suitable for a townhouse. However, in today's market, buyers have more choices than before, so we were not just looking for any property that fit the budget. We were looking for the best possible option within their range. That meant a home with a double driveway, more interior space, a stronger school zone, and better long-term value. In the past, especially during the hot market, it would have been very difficult for this type of buyer to be so selective. But in today's softer market, buyers can compare more options, take their time, and aim for a home that better matches their family needs.

This also tells sellers something important. Buyers are not just looking at price. They are comparing the full package. If two homes are priced similarly, the one with better layout, better parking, better school zone, better condition, or more usable space will stand out. In today's market, average homes may still struggle, but homes with clear advantages can still attract serious buyers.

One mistake some sellers make is thinking that if the market is slow, all homes are equally hard to sell. That is not true. Good homes are still rare. I often hear buyers say, "Everyone says the market is slow, but why are there only one or two homes I actually like"? This is very true in Richmond Hill. Many listings may be available, but not all of them are suitable for today's end-user buyers. A buyer may look at dozens of properties online but only seriously consider a few. That is why presentation and preparation matter so much.

Tenant-occupied properties are one of the most difficult categories to sell. In theory, a home can be sold with a tenant. In practice, it usually reduces the buyer pool. The seller wants maximum exposure, frequent showings, clean presentation, professional photos, and flexible access. The tenant wants quiet enjoyment, privacy, and less disturbance. These two interests often conflict. Even a very cooperative tenant may not keep the home in perfect showing condition. There may be dishes, laundry, water stains, garbage, or personal belongings around the home. The home may not photograph well, and showing times may be limited.

For Richmond Hill sellers, if the goal is to sell for the best price, vacant possession is usually much better. A vacant home can be cleaned, repaired, staged, photographed properly, and shown easily. It gives buyers a stronger emotional connection. They can imagine themselves living there. With a tenant inside, especially if the buyer wants the home for personal use, the buyer may worry about whether the tenant will leave on time. This creates uncertainty, and uncertainty usually reduces price.

Renovation is another important question. Many sellers ask whether they should renovate before listing. The answer depends on the property, but in today's market, small improvements can make a big difference. Most end-user buyers want move-in-ready homes. They are busy with work and family, and many do not have the time, experience, or confidence to manage renovations. If a seller can spend one dollar and create two or three dollars of perceived value, that work is usually worth doing. Fresh paint, updated lighting, minor repairs, deep cleaning, landscaping, floor touch-ups, and simple staging can help a lot.

That does not mean every home needs a full renovation. Sometimes the best strategy is to repair only what is necessary and price the home accordingly. But sellers should be honest about the target buyer. If the home is being marketed to a family that wants to move in right away, the property must feel clean, safe, bright, and well-maintained. If the home is being marketed as a renovation opportunity, the price must reflect that. A seller cannot present a home as outdated but price it like a renovated one.

Pricing is probably the most sensitive part of selling in Richmond Hill today. The market is very divided. Some homes are showing signs of recovery, while others are still under pressure. A seller should not price based only on hope. The price has to match current buyer expectations. Pricing too high can waste the first wave of attention. The first one to two weeks are extremely important because that is when serious buyers and agents notice the listing. If the home is overpriced, those buyers may move on. Later price reductions may not fully bring them back.

Another challenge in today's Richmond Hill real estate market is that some sellers are more emotional than the market allows. This is understandable. For many homeowners, their property is not just an investment; it is their home, their memories, and often their biggest asset. Because of that, they may naturally expect a higher price than what the current market can support.

I have met several sellers in the past who had price expectations far above the real market level. Even when the numbers, comparable sales, and buyer feedback all pointed in a different direction, they still did not agree with the price. In a downward or uncertain market, some sellers still want to "try the market" first. They may feel that there is no harm in listing high and waiting for one buyer to appear.

The problem is that this kind of gamble can be very costly. Some sellers eventually choose an agent who agrees to list the property high. But after six months, or sometimes even one year, they slowly have to accept the market reality. By that time, the strongest buyers have already moved on and purchased other properties. The listing has lost its first wave of attention, the days on market have become a concern, and the home may already carry a negative impression in buyers' minds.

At that stage, even a major price reduction may not fully repair the damage. The seller has already paid months of carrying costs, lost valuable time, missed the most serious buyers, and still has to come back to the same market reality. In many cases, the final selling price becomes lower than what could have been achieved if the home had been priced properly from the beginning. This is why honest pricing advice is so important. A good agent's job is not just to say what the seller wants to hear. It is to protect the seller from a mistake that may become much more expensive later.

At the same time, pricing too low without a clear strategy can also create problems. If a home that should sell around $950,000 is listed at $899,000 but does not receive strong offers, raising the price later can hurt buyer confidence. Buyers may wonder what happened and why the property did not sell. Good pricing is not just about being cheap. It is about positioning the home correctly so buyers feel the value and have a reason to act.

Sellers also need to understand carrying cost. Holding a property for too long is expensive. Even if there is no mortgage, there is still opportunity cost. Money tied up in a property could be earning interest elsewhere. On top of that, there are property taxes, insurance, utilities, maintenance, condo fees if applicable, and other expenses. For a $1 million property, the monthly holding cost can easily become several thousand dollars. If a home sits for six months, the real cost can be very significant. Waiting for an unrealistic price can sometimes cost more than making a smart pricing decision early.

Marketing is the final piece. In a slow or selective market, simply putting the home on MLS is not enough. The property's strongest features must be clearly explained. Many buyers search by filters and make quick decisions online. If the listing does not clearly show the upgrades, layout advantages, school information, location benefits, or special features, many buyers may never understand the value. In real estate marketing, what is not shown often feels like it does not exist.

For Richmond Hill homes, good exposure should include professional photography, strong listing remarks, floor plans, video, social media, open houses, agent-to-agent promotion, and targeted buyer outreach. Depending on the property, platforms like YouTube, Facebook, Instagram, LinkedIn, WhatsApp groups, WeChat, and Xiaohongshu can all help bring more attention. The goal is simple: more qualified buyers need to see the home, understand the home, and feel motivated to book a showing.

Looking ahead, Richmond Hill real estate is likely to remain selective. Buyers will continue to focus on affordability and quality. Homes that are well-located, properly prepared, realistically priced, and actively marketed will have a much better chance of selling. Homes with unclear value, poor condition, limited access, or unrealistic pricing may continue to struggle.

For buyers, this market offers opportunities. There is more choice than during the peak years, and sellers are generally more open to negotiation. But the best homes are still competitive because many families want the same things: good schools, good layout, good location, and move-in condition. Waiting forever may not help if the right home appears and fits the budget.

For sellers, the message is clear. This is not a market where you can rely on luck. You need preparation, realistic pricing, strong presentation, and proper exposure. Richmond Hill remains a highly desirable community, but buyers today are more careful and more informed. The homes that sell are the ones that give buyers confidence. In this kind of market, the difference between a property that sells and a property that sits is often decided before the listing even goes live.



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