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

The market was more balanced in July

The market was more balanced in the Durham Region, yet still considered a seller's market* with only 2 months of inventory despite a decline in sales and average price across the region in July.

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

What's the Takeaway?

The market has slowed down slightly in July but historically the dog days of summer are when demand decreases due to buyers putting off their searches. However, buyers could also be feeling the results of June’s interest rate announcement when the Bank of Canada increased its policy rate by 0.25%.

Sellers need to stay abreast of market conditions especially as we head into September when the Bank of Canada’s next interest rate announcement will take place.

Buyers can take advantage of summer months with a little less competition and perhaps feel a little less rushed with average days on the market increasing.

What should we expect for the Fall Market?

Is this month’s sales a result of seasonality or the Bank of Canada’s interest rate increase in June? That is the question. It’s likely a little of both. If September brings another rate increase we can expect that to further impact purchasing power and in turn sales and pricing in the Durham Region.

If not the Fall Market may bring more buyers back into the market and increase competition for a limited supply of homes.

Read How will Canada’s Economy Impact the Fall Market

As always follow us and reach out with any questions you have on this ever-evolving real estate market.

*What constitutes a seller's, buyer's, or balanced market?

• 2 or fewer months of inventory is a seller's market
• 3-4 months of inventory is a balanced market
• 5+ months of inventory is a buyers market

If no new properties came on the market it would take less than 2 months to sell all the available homes.

What's Happening in The Durham Region

It's still a Seller's Market, albeit cooling. 

With just over 2 months of inventory, it remains a seller's market.  Inventory increased in June and sales faltered down 15.8% in Durham from the prior month while pricing remained stable.

The Bank of Canada's June interest rate hike and the lack of inventory meeting buyer needs to this point have driven some buyers to the sidelines. 

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

What's the Takeaway?

With inventory increasing and fewer buyers in the market the way a home is prepared, priced, and marketed is more important than in the last quarter. Inventory may have increased but it is still very low. Sellers who are prepared to attract buyers with the right listing strategy will come out on top.

Buyers who are qualified and prepared can take advantage of the slowing sales volume and increased inventory. Connect with experts like us to determine what your options are and how best to approach this market.

Could the market cool off?

Yes, in June we have already seen significant increases in new listings while sales have declined. While pricing has remained stable increasing interest rates impact affordability for buyers and that could continue to cool the market.  

The next big announcement from the Bank of Canada is set to take place in Septmeber, 2023. Follow us to see what happens with interest rates and how that will affect the real estate market. *** July 12th  Bank of Canada has raised its benchmark rate to 5%. This puts prime rate at 7.20%.***

As always follow us and reach out with any questions you have on this ever-evolving real estate market.

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.