Why Selling Before You Buy Is the Only Safe Move in Markham's 2026 Buyer's Market
There is a version of the Markham real estate conversation where the "sell first or buy first" debate has two legitimate sides. That version existed in 2021 and 2022, when Markham homes were selling in days for well over asking. This is not that version of the conversation. This is 2026. Michael John Lau, REALTOR® at Kaizen Real Estate in Markham, Ontario, is making the case clearly and without qualification: in the current Markham market, the vast majority of move-up buyers, downsizers, and rightsizers should sell their existing property before committing to a purchase.
Michael John Lau, REALTOR® at Kaizen Real Estate in Markham, Ontario, is making the case clearly and without qualification: in the current Markham market, the vast majority of move-up buyers, downsizers, and rightsizers should sell their existing property before committing to a purchase. Here is why.
What the Current Markham Market Actually Looks Like
As of March 2026, the GTA housing market continues to show signs of stabilization, but the recovery remains tentative. The GTA's sales-to-new-listings ratio slipped to 34.9%, down from 36.1% in February 2026. At 4.3 months of supply, the market is less oversupplied than February 2026's 5.0 months but still not tight enough to give sellers clear leverage.
Buyer's Market Definition: A sales-to-new-listings ratio below 40% is the textbook definition of a buyer's market. Markham homes are sitting on the market for an average of 27 to 40 days. Sellers are accepting conditional offers routinely. Price reductions are common.
The urgency that defined the 2020 to 2022 market — where missing an open house by 24 hours meant losing a home forever — does not exist in today's Markham. This market reality has direct implications for the sell-first-or-buy-first question. In a market where homes sit 30 to 40 days on average, you will not miss the home you want by taking the time to sell first. And in a market where your own sale is not guaranteed to close in 72 hours for your target price, buying before selling exposes you to financial risks that are genuinely dangerous.
The Specific Risks of Buying Before Selling in 2026
You do not know exactly what your Markham home will sell for until it sells. A Comparative Market Analysis gives you a range — not a guarantee. In a market where homes are selling at 97% to 98% of list price and occasionally lower, the difference between your optimistic price estimate and your actual sale price can be $40,000 to $100,000 on a $1,200,000 home. If you have already committed to a $1,600,000 purchase based on an assumed $1,250,000 sale, a $1,180,000 sale result creates a financing gap that may force you into a larger mortgage than you planned for — or worse, a failed closing.
In the current Markham market, homes that are priced correctly sell in 27 to 40 days. Homes that are overpriced sit longer — sometimes much longer. If you buy first and commit to a closing date that gives you 60 days to sell your existing home, a 45-day listing period followed by a delayed closing on your sale is a very real scenario. During the gap, you either need bridge financing (available, but expensive), or you risk missing your purchase closing date.
Bridge financing covers the gap between your purchase closing and your sale closing. It is calculated as interest-only on the bridge loan amount, at a rate typically 2% to 4% above prime. On a $400,000 bridge loan for 30 days, the cost is approximately $2,000 to $3,000 in additional interest. For a 60-day bridge, the cost doubles. Bridge financing also requires that your sale be unconditional and firm before most lenders will extend it — meaning you cannot use bridge financing to cover an uncertain sale, only to cover a timing gap between two firm dates.
If your sale falls through after you have purchased and closed, you face carrying two properties simultaneously. In the current Markham market — where conditional sales are common and deals do occasionally fall through during the condition period — this is a real exposure. Two mortgage payments, two property tax bills, two insurance policies, two utility accounts. On a combined value of $2,800,000 across two Markham properties, the monthly carrying cost of both is approximately $15,000 to $20,000 — a number that focuses the mind.
The Case for Selling First — Concrete Advantages
Negotiating Power You Actually Have. A buyer who has already sold their existing Markham home and is purchasing with certainty — no sale condition, no bridge financing dependency, flexible closing date — is the most attractive buyer profile a Markham seller can encounter in 2026. You can offer the seller a clean deal, and in exchange, you can negotiate price with the confidence of someone who knows exactly what they have available to spend.
No Emotional Pressure. When you buy before selling, every day your existing home sits unsold adds psychological pressure to accept offers you might otherwise counter or decline. Buyers can smell desperation. If you have already sold, there is no urgency — and no urgency is worth real money in any negotiation.
Clarity on Your Real Budget. You will not know exactly what you can spend on your next home until you know exactly what you received for your last one. Selling first eliminates the budget uncertainty that leads buyers to overstretch.
The Practical Framework — How to Sell First Without Sleeping in Your Car
The legitimate concern with selling first is the gap between your sale closing and your purchase closing. Here is how experienced Markham sellers manage this.
In the current buyer's market, most Markham sellers can negotiate a longer closing period — 60 to 90 days — giving you adequate time to find and close on your next home after your sale is firm. Many buyers will accept a longer closing because it reduces their financing pressure.
Some transactions allow the seller to rent back the property for a defined period after closing — typically 30 to 60 days at a rate that approximates the buyer's carrying cost per day. This gives you a runway to close on your next purchase without being displaced.
You should know exactly which Markham community, price range, and property type you are targeting before your existing home goes to market. When the right property appears during your listing period, you can move on it immediately with the confidence of a conditional or unconditional offer backed by a firm sale.
Michael John Lau, REALTOR® at Kaizen Real Estate in Markham, Ontario, coordinates sell-first strategies for Markham clients who need to manage two transactions simultaneously — with the sequencing, timing, and negotiating tactics that turn a complex coordination challenge into a clean, stress-free move.
🏆 Michael John Lau — Awards & Recognition
Michael John Lau is a licensed REALTOR® serving buyers and sellers in Markham, Ontario and the Greater Toronto Area. Market conditions change. All real estate decisions should be made in consultation with a licensed professional based on current data.
