Appraisals are also a major factor in home prices. Sellers, knowing their home will not appraise at their desired amount - even if it’s at a lower price than it would have been in early 2022 - will opt not to sell. For buyers, knowing that prices may continue to soften, will typically not pay more out of pocket to make up the difference between asking prices and appraisal valuations. There are exceptions to this super brief explanation but, I believe lower appraisal amounts explain the cancellations of over 50% of listings in the Toronto area.
Appraisals are also a major factor in home prices. Sellers, knowing their home will not appraise at their desired amount - even if it’s at a lower price than it would have been in early 2022 - will opt not to sell. For buyers, knowing that prices may continue to soften, will typically not pay more out of pocket to make up the difference between asking prices and appraisal valuations. There are exceptions to this super brief explanation but, I believe lower appraisal amounts explain the cancellations of over 50% of listings in the Toronto area.