The current real estate market in the GTA has seen many buyers and sellers sitting on the fence. Most people are wondering “Where are the good opportunities and is it possible for me to take advantage of one?”.  Luckily, there is a silver lining in the current real estate market. The best opportunity right now, is for buyers who are looking to upsize their home.


One of the biggest gripes that most homeowners have when they’re thinking about upsizing a home in this market is the thought of selling their home when it is worth considerably less than it was last year at the peak of the market. The fact of the matter is, all you need to do is apply some basic math and you will see that upsizing your home in a down market is actually a smart move!


Let’s say you purchased a pre-construction condo in 2016 for $250,000 and in the peak of the real estate market your condo hit of value of $440,000. Since then, the value of your condo has decreased 10% to a current value of $396,000.  On the surface, you’d likely be saying to yourself “How am I at an advantage if my condo is now worth $44,000 less than it was 12 months ago?” While it is true that your condo is not worth $44,000 less than it was 12 months ago, you have to apply that same principal to the home you are going to be purchasing.


Let’s assume that you’re going to be upsizing into a semi-detached home, which at the peak of the market was worth $700,000. Applying the same 10% drop in value illustrated above, that would mean a current value $630,000. That means, the home you would be purchasing has gone down by $70,000 since it’s peak pricing. What that really means, is you are actually getting a net equity increase of $26,000 after taking into account the decrease in market value.


It’s clear to see that upsizing your home while in a down market is actually a very smart move to make. There are several factors at play, which require an in-depth analysis and the following criteria will let you know if it makes sense to move forward on upsizing your home.

Upsizing Your Home Makes Sense, if:

  1. You will be purchasing a home where you are able to get a net equity increase from the market peak of 2017.
  2. You have built considerable equity in your current property. (This is likely the case for almost anybody who had purchased a pre construction condo or condo townhouse in 2015-2016).
  3. The increase in equity enables you to facilitate your new purchase without having to use any funds outside of your existing home.
  4. You would be upsizing your home within the next 12-24 months regardless of where the market is.
  5. You can get into an area you love, which would have been impossible at the peak of the market.


If you are considering upsizing your home and want to see exactly how much you could benefit from the current market, please fill out our contact information below. Or if you prefer, you can call, text or email us at any time and we would happy to have a 15-minute consultation with you.

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