Staying Cool:

The GTA real estate market maintained its cool demeanor in September, following the trends set during the summer months. The impact of interest rates continued to affect buyers.

Durham & Toronto Market Insights

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

Home Sales:

In September, 4,642 homes were sold in the GTA, marking a 12.1% drop from August and a 7.1% decline from the previous year. Detached homes and condo apartments continued to be the top choices for buyers. The dip in sales was more noticeable for ground-oriented homes, particularly semi-detached houses and townhouses.

Home Prices:

The average selling price for homes in the GTA was around $1,129,428. This is a 3% increase compared to the previous year and a 3.4% uptick from August. However, it's important to note that this doesn't necessarily indicate a reversal of the downward trend seen over the summer, given the rising inventory and declining sales.

Inventory Levels: 

The GTA's current month of inventory stands at 3.94 months, signaling a balanced market. New listings increased by 44% compared to the previous year and by 32% from August. Interestingly, this contrasts with the pricing trends. More homes are available, but fewer are selling, despite slightly higher prices month-over-month. In the Durham Region, the market remains more competitive, with only 2.6 months of inventory.

Days on Market:

Homes are spending an average of 20 days on the market. In Durham Region, it took approximately 25 days for homes to sell, and in Toronto, that number was around 30 days. It's worth mentioning that we're noticing many listings terminating and relisting, which can extend these timeframes.

Interest Rates and Their Impact:

Bank of Canada Governor Tiff Macklem noted, "The fight against inflation is not over." Despite taking a "wait and see" approach in September, the impact of the nine consecutive interest rate hikes since April 2022 continues to affect buyer purchasing power. Moreover, the Bank of Canada hasn't ruled out another interest rate hike in October, with the next announcement scheduled for Oct. 25th.

Pricing Strategies:

Pricing plays a significant role in this market, especially in the Durham Region. An overpriced home can struggle to gain interest, while an underpriced one may not attract the right offer. As demand eases due to rising borrowing costs, many sellers are finding it challenging to establish the right pricing strategy. Some homes miss offer dates, terminate listings, and relist, sometimes more than once before they sell. Accurate pricing backed by data is crucial for an efficient sale.

External Factors:

The market is still influenced by the same external factors, primarily interest rates and their impact on buying power, coupled with the heightened demand driven by population growth in the GTA.

Local Market Variations:

Every market experienced significant inventory increases, but some key markets saw substantial price swings. For example, Ajax witnessed a 7.3% increase in the average price of semis, while Clarington saw a 7.5% decrease in detached prices and an 8% increase in condo pricing. These shifts are often due to fewer sales and specific property sales impacting the average price month-over-month.

What's Next:

In the short term, what happens next largely depends on the Bank of Canada's decision in its Oct. 25 announcement. If inventory continues to rise, we can expect the market to remain cool in the latter half of 2023. While mortgage affordability remains a challenge for buyers, they may have more negotiating power. Financing and inspection conditions are becoming more common in offers, and sellers will continue to adapt to a more competitive market. Preparing your home effectively, including setting a well-thought-out list price, will be crucial for attracting the right buyers.

The GTA real estate market keeps evolving, and we'll keep you updated. If you have any questions or need assistance with your real estate endeavors, don't hesitate to reach out. We're here to guide you through the ever-changing world of real estate!

MORE MARKET INSIGHTS

As your trusted real estate expert, I'm here to give you a straightforward rundown of what's been happening in the Greater Toronto Area (GTA) real estate market this past August. Let's dive right in:

Cooling Off, but Steady:

The GTA real estate market continued to cool off in August. A few factors played a role, such as interest rate increases by the Bank of Canada, economic uncertainty, and a shortage of available homes. So, it's been a bit more relaxed for both buyers and sellers lately.

Durham & Toronto Market Insights

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

*See insights for Markham/Stouffville & Northumberland at the bottom.

Home Sales:

In August, a total of 5,294 homes were sold across the GTA. This is a bit up from July but down 5.2% compared to last year. The most popular choices among buyers were detached homes and condo apartments.

Home Prices:

The average selling price for a home in the GTA was around $1,082,496. It's up slightly from last year but down 3.2% from July. So, prices have been holding fairly steady, with some fluctuations in condos and semis in the Durham Region.

Inventory Levels:

Right now, we have about 2.2 months of inventory. Technically, this means it's still a seller's market (anything below 3 months). But, due to the impact of interest rates, it's more balanced. We did see more listings this year, but overall, we still don't have enough homes for sale.

Days on Market:

Homes are selling faster than they did last year, but it's taking a bit longer than it did in July. On average, homes in Durham Region took 22 days to sell, and in Toronto, it was around 29 days.

Mortgage Rates and Affordability:

Interest rates have gone up ten times since April 2022. That's affecting how much people can afford to borrow. So, affordability is on the minds of many buyers. High demand and low supply are also keeping prices from dropping considerably.

Investor Trends:

We're noticing that condo investors in Toronto are starting to sell their units because of those rising interest rates. This might make condos a better option for homebuyers.

External Factors:

Interest rates are still a big deal. They affect how much people can spend on a home and how motivated sellers are. Plus, we're seeing a lot of new folks moving to the GTA, which is keeping things competitive despite challenges for buyers.

Local Market Variations:

Certain areas, like Whitby, saw a 25.2% increase in condo prices. But don’t be fooled. This was likely because there were fewer sales, and some specific properties affected the average price. We call those sales outliers.

What's Next:

As we head into September and the Fall Market, we usually see more listings and more buyers. The Bank of Canada decided to keep interest rates at 5% for now, so that gives buyers some short-term certainty. We predict a more balanced market in the near future, with financing costs being a bit high for aggressive bidding wars, but still, strong demand and low inventory will keep prices competitive.

What's the Takeaway

In a nutshell, the GTA real estate market is still active, but it's finding a more balanced groove. If you're buying or selling, make sure to stay updated with these trends, and feel free to reach out if you have any questions or need assistance. We're here to help you navigate the ever-changing real estate landscape!

MORE MARKET INSIGHTS

After a long snowing winter, the spring market is heating up

Last month we passed the one-year anniversary of the peak of housing prices and while the news may be preoccupied with the 17.9% year-over-year decline in GTA housing prices we’re more concerned with what buyers and sellers like you are working with today.

Has the housing market come full circle? One statistic is pointing to that conclusion.

Last month saw a typical increase in homes hitting the market from the previous month but inventory remains very low. We saw significantly fewer transactions as well in February but one statistic give us a clue that competition is heating up. Days on market are declining indicating buyers are getting more aggressive.

In fact, on the street, we’re seeing a significant increase in homes selling in multiple offers and average days on market dropping significantly something we’ll be keeping an eye on in the coming weeks.

Here are the stats for Markets Across the GTA in February 2023.

Durham February Market Watch Snapshot TRREB Data by Brian Stanton

Toronto & York Region February Market Watch Snapshot TRREB Data by Brian Stanton

Cobourg Port Hope February Market Watch Snapshot TRREB Data by Brian Stanton

THE BOTTOM LINE

FOR BUYERS: You can still make a conditional purchase and while competition is heating up in some markets for certain properties there lots of opportunities to find the home you want at good value. If you’re contemplating a buy and are on the sidelines there are a couple important first steps. Reach out and we can help you get the ball rolling.

FOR SELLERS: Now is a great time to sell your home. With more buyers entering the market and competition heating up you can benefit from the limited supply. You’ll want to consult with a realtor to determine how to make your move and how to best prepare your home so you get top dollar. Reach out to Jim and he'll help you get started 

Housing prices are down year over year going back to January 2022 and there are lots of headlines on that topic, but there’s a silver lining if you look deeper.

Yes, the days and seeing double-digit price increases in such a short period of time are well behind us. As the market adjusts, we need to look ahead rather than behind to make informed decisions regarding our real estate. 

THE GOOD NEWS

While many buyers are still waiting, slightly more will enter the market in 2023 and those who do will find homes significantly more affordable than a year ago.

If you’re thinking of selling your home you should be feeling relief as pricing in many markets across the GTA is stabilizing and many areas and housing types saw the average price increase from December to January. On the street, we’re even starting to see many homes sell in multiple offers again.

Here are the stats for Markets Across the GTA in January 2023.

1080x1080-JAN 2023 Market Stats by Brian Stanton

THE BOTTOM LINE

A more balanced market offers you the opportunity to evaluate your situation and determine what the right move is for you without the pressure of wild bidding wars or the prospect of massive interest rate hikes.

CLOSING

We can expect another headline-grabbing set of statistics for year-over-year average pricing in February but if you’re thinking of making a move in today's market what’s more important is what is happening in the market today. 

If you need help determining if you can make the move you want to make in 2023. Reach out to us, we're happy to help.