While the stats show GTA home prices have increased in the month of October 2023 compared to the same time last year, prices remained relatively flat from the previous month. The big change we are seeing is the inventory levels are way up and the sales volume is down.

Durham & Toronto Market Insights

Every city/town is unique as are the communities within them. Scroll through to find your town.

What it means for Buyers & Sellers

This presents an opportunity for buyers. You can likely avoid competing on a property and negotiate on price and terms, which hasn't always been an option for successful buyers in recent years. If you own your current home and are looking to move, it may be wise to sell first. This ensures you don't overextend on your purchase and can upgrade/downsize with confidence.

Sellers Need to Match the Market

Homes are taking longer to sell and we are seeing a lot of terminated listings and price adjustments. The properties that are selling are the ones priced correctly to today's market conditions. If you want to get your property sold then the correct pricing and presentation are extremely important.

Impact on New Home & Pre-Construction Sales

Another segment of the market that is feeling the impact of high-interest rates is new home and pre-construction sales. We are noticing that there is a growing number of assignment sales being offered at a discount from the original purchase price. If you are considering purchasing an assignment it is imperative that you have representation and have the contract reviewed thoroughly. 

What's Next

What's next for the real estate market in the GTA, well nobody knows for sure. With so many mortgages set to renew in the next few years, we will certainly be watching and waiting to see what happens with interest rates moving forward.

MORE MARKET INSIGHTS

October 2023 Market Stats Markham Stouffville

October 2023 Market Stats Northumberland

Canada's economy experienced a modest 0.3% growth in GDP during May. However, it is projected that this growth may slow down in June, with an expected decrease of 0.2%. If this projection holds true, it would result in a 1.2% increase in the economy for Q2 of 2023, which is lower than the previous quarter's 3.4% increase and also falls short of the Bank of Canada's initial estimate of a 1.5% increase for Q2. The slowdown in economic growth has been a focal point for the Bank of Canada, and it may impact their decision on implementing another rate hike in September.

Given the recent economic performance and projections, there could be potential implications for the Fall Real Estate Market. The lower-than-expected GDP growth may affect consumer confidence and spending patterns. However, the overall impact on the real estate market will depend on various factors, including inflation rates and interest rates, which are yet to be announced.

To have a clearer picture of how the Fall Real Estate Market may be affected, it would be prudent to keep an eye on the upcoming updates on inflation (August 10th) and GDP for Canada (September 1st), as well as the rate announcement on September 6th. These key economic indicators will provide valuable insights into the direction of the economy and its potential impact on the real estate sector.

That said, the biggest factor for real estate in recent months has been interest rates. As we have seen throughout 2023 when interest rates stabilize more buyers enter the market and that puts upward pressure on pricing.

Below you can find a schedule of all Bank of Canada interest rate announcements for the remainder of 2023:

• Wednesday, September 6
• Wednesday, October 25* Monetary Policy Report Published
• Wednesday, December 6

Sources: Bank of Canada News / Summary provided by Steven J. King, Principal Broker at Verico SGH Mortgages Inc.