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Toronto & GTA Real Estate Market Insights: May 2024 Market Recap

Greetings, GTA homebuyers and sellers! As we step into June, it's time to reflect on the dynamic real estate landscape that unfolded throughout May 2024. Join us as we uncover the latest insights and trends from the past month, offering a clear perspective on what May's market stats mean for your real estate journey. At Jim Stanton & Associates, our commitment to providing you with valuable information remains steadfast. Let's explore together the opportunities and possibilities that await in the ever-evolving GTA market.

Market Summary: In May 2024, the GTA real estate market showed mixed signals:

  • Sales Momentum: Compared to the same period last year, sales decreased by 21.7%. There was a month-over-month decrease of 1.42%.

  • Listing Dynamics: New listings were up 21.1% from 2023 and 9.9% month-over-month.

  • Active Listings: Active listings saw a significant increase, up 83.3% from 2023 and 20.3% from April 2024.

  • Price Trends: The average price for homes was down 2.5% year-over-year but saw a slight increase of 0.8% month-over-month.

  • Balanced Market: With 3 months of inventory available, the market was balanced.

  • Time to Sell: Days on Market remained stable month-over-month.

Click here to view the TRREB Market Watch Report for May 2024

What's happening? Toronto Market Insights

Interest Rates

On June 5th, the Bank of Canada decreased its policy interest rate by 25 basis points. This is the first move since July 2023 and the first reduction since it began increasing the rate in March 2022 from its record low of 0.25%. The last time interest rates were lowered by the Bank of Canada was when the Bank dropped rates to an all-time low at the onset of the pandemic in March 2023.

What Does This Mean for Buyers and Sellers?

For Buyers:

Buyers are poised to benefit from the recent interest rate reduction, which is expected to increase buying power and push more buyers into the market. As a general rule of thumb, a ¼ point decrease in interest rates adds about $10,000 to the average borrower's buying power, though this depends on individual circumstances. However, with more buying power, competition is likely to heat up, especially for entry-level homes. Lower rates can be tempting, but remember that while waiting for further reductions, competition will likely increase. If you buy now, you pay today's prices and can always refinance at a lower rate later. Waiting might get you a lower rate, but you'll likely be paying a higher price.

For Sellers:

Luxury homes have been taking longer to sell in the higher interest rate environment. Hang in there; lower rates may bring more buyers. Expect competition to increase even more on entry-level homes like townhomes and links. These homes are always in demand, and these changes will only spur more competition. With rates finally starting to come down, now is the time to plan your next move. Information is power, and you only benefit by starting the process now.

Conclusion:

In conclusion, May 2024 witnessed a mix of trends in the GTA real estate market, presenting a balanced environment for both buyers and sellers alike. Despite fluctuations in sales compared to last year, there was a notable month-over-month decrease. The surge in new and active listings indicates a healthy influx of properties, while pricing trends remained relatively stable. With inventory levels maintaining a balance, the market is poised for potential changes depending on the upcoming interest rate adjustments. Looking ahead, proactive engagement will be key for both buyers and sellers to capitalize on emerging opportunities. At Jim Stanton & Associates, we're dedicated to providing the guidance and support necessary for navigating this dynamic landscape effectively.

Get the Help You Need:

Regardless of the statistics and the market, you have your own reasons for making a move. A big life event, ambitions, the need to upsize or downsize, or even relocate. The key is to ensure you have someone in your corner representing your best interests. Let us be your guide. Contact Us Today!

Call Ben at 905-995-3372

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GTA Real Estate Market Insights: May 2024 Market Recap

Greetings, GTA homebuyers and sellers! As we step into June, it's time to reflect on the dynamic real estate landscape that unfolded throughout May 2024. Join us as we uncover the latest insights and trends from the past month, offering a clear perspective on what May's market stats mean for your real estate journey. At Jim Stanton & Associates, our commitment to providing you with valuable information remains steadfast. Let's explore together the opportunities and possibilities that await in the ever-evolving GTA market.

Market Summary: In May 2024, the GTA real estate market showed mixed signals:

  • Sales Momentum: Compared to the same period last year, sales decreased by 21.7%. There was a month-over-month decrease of 1.42%.

  • Listing Dynamics: New listings were up 21.1% from 2023 and 9.9% month-over-month.

  • Active Listings: Active listings saw a significant increase, up 83.3% from 2023 and 20.3% from April 2024.

  • Price Trends: The average price for homes was down 2.5% year-over-year but saw a slight increase of 0.8% month-over-month.

  • Balanced Market: With 3 months of inventory available, the market was balanced.

  • Time to Sell: Days on Market remained stable month-over-month.

Click here to view the TRREB Market Watch Report for May 2024

What's happening locally? Durham & Toronto Market Insights

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

Interest Rates

On June 5th, the Bank of Canada decreased its policy interest rate by 25 basis points. This is the first move since July 2023 and the first reduction since it began increasing the rate in March 2022 from its record low of 0.25%. The last time interest rates were lowered by the Bank of Canada was when the Bank dropped rates to an all-time low at the onset of the pandemic in March 2023.

What Does This Mean for Buyers and Sellers?

For Buyers:

Buyers are poised to benefit from the recent interest rate reduction, which is expected to increase buying power and push more buyers into the market. As a general rule of thumb, a ¼ point decrease in interest rates adds about $10,000 to the average borrower's buying power, though this depends on individual circumstances. However, with more buying power, competition is likely to heat up, especially for entry-level homes. Lower rates can be tempting, but remember that while waiting for further reductions, competition will likely increase. If you buy now, you pay today's prices and can always refinance at a lower rate later. Waiting might get you a lower rate, but you'll likely be paying a higher price.

For Sellers:

Luxury homes have been taking longer to sell in the higher interest rate environment. Hang in there; lower rates may bring more buyers. Expect competition to increase even more on entry-level homes like townhomes and links. These homes are always in demand, and these changes will only spur more competition. With rates finally starting to come down, now is the time to plan your next move. Information is power, and you only benefit by starting the process now.

Conclusion:

In conclusion, May 2024 witnessed a mix of trends in the GTA real estate market, presenting a balanced environment for both buyers and sellers alike. Despite fluctuations in sales compared to last year, there was a notable month-over-month decrease. The surge in new and active listings indicates a healthy influx of properties, while pricing trends remained relatively stable. With inventory levels maintaining a balance, the market is poised for potential changes depending on the upcoming interest rate adjustments. Looking ahead, proactive engagement will be key for both buyers and sellers to capitalize on emerging opportunities. At Jim Stanton & Associates, we're dedicated to providing the guidance and support necessary for navigating this dynamic landscape effectively.

Get the Help You Need:

Regardless of the statistics and the market, you have your own reasons for making a move. A big life event, ambitions, the need to upsize or downsize, or even relocate. The key is to ensure you have someone in your corner representing your best interests. Let us be your guide. Contact Us Today!

Call Jim at 905-409-9967

MORE MARKET INSIGHTS (Markham/Stouffville & Port Hope/Cobourg)

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GTA Real Estate Market Insights: April 2024 Market Recap

Greetings, GTA homebuyers and sellers! As we step into May, it's time to reflect on the dynamic real estate landscape that unfolded throughout April 2024. Join us as we uncover the latest insights and trends from the past month, offering a clear perspective on what April's market stats mean for your real estate journey. At Jim Stanton & Associates, our commitment to providing you with valuable information remains steadfast. Let's explore together the opportunities and possibilities that await in the ever-evolving GTA market.

Market Summary

In April 2024, the GTA real estate market stabalized:

  • Sales Momentum: Compared to the same period last year, sales came down 5%. There was a month-over-month increase of 8.45%.

  • Listing Dynamics: New listings skyrocketed year-over-year increase of 47.2% and a month-over-month increase of 29.12%

  • Price Trends: The average price was stable increasiing 0.3% compared to last year and a with an increase of 3.08% from the previous month.

  • Slight Seller's Advantage: With 2.54 months of inventory available the market was more balanced. Sellers maintained a slight position of strength.

  • Time to Sell: Days on Market remained stable month-over-month and with listings taking a couple days more to sell year-over-year. 

What's happening locally? Durham & Toronto Market Insights

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

Interest Rates

On April 10th. The Bank of Canada maintained its policy rate. The next scheduled announcement is June 5th. While the Bank has not committed to any specific direction signs are positive that interest rates will be coming down in the future.

What Does This Mean for Buyers and Sellers?

For Buyers:

Buyers benefited from increased in inventory in April and a relatively consistent timeframe to buy although that varies from market to market. The key for buyers will be what happens in June when the Bank of Canada makes it’s next interest rate announcement. The marke is still competitive but it will get even busier if rates come down. Hopefully if that happens more would be sellers will decide to put their home on the market.

  • Is May your ideal time to buy?: If rates come down in June more buyers will undoubtedly hit the market and only the presence of a massive increase in sellers will keep pricing down.

  • First Time/Renters vs. Movers:  Movers can handle a more competitive market because what they spend in their purchase they can also make up for in their sale. If you are a first time buyer or a renter looking to own you don’t have that advantage. 

For Sellers:

Despite a rise in sales and a surge in new listings, low inventory levels persist, intensifying buyer competition and fostering ample opportunities for sellers. While the spring market may be progressing, don't hesitate to act, even amidst the allure of awaiting more favorable mortgage rates. Consider this:

  • Start Now: If you want to make a move before the school bells ring next year now is the time to act. Get your home prepared to sell. Check out our informative Instagram Reel on this very topic HERE.

  • Preparation Meets Opportunity: Many sellers are waiting or rates to drop to make a move and that’s understandable. We all know rate relief is on the horizon so start today and be prepared to make your move ahead of the market.

Conclusion:

In conclusion, April 2024 witnessed a stabilization in the GTA real estate market, presenting a balanced environment for both buyers and sellers alike. Despite fluctuations in sales compared to last year, there was notable momentum with an increase from the previous month. The surge in new listings indicates a healthy influx of properties, while pricing trends remained steady. With inventory levels maintaining a modest balance, sellers retained a slight advantage, yet the market remained competitive, particularly in anticipation of potential interest rate adjustments. Looking ahead, proactive engagement will be key for both buyers and sellers to capitalize on emerging opportunities. At Jim Stanton & Associates, we're dedicated to providing the guidance and support necessary for navigating this dynamic landscape effectively.

Get the Help You Need:

Regardless of the statistics and the market you have your own reasons for making a move. A big life event, ambitions, the need to upsize or downsize or even relocate. The key is to ensure you have someone in your corner representing your best interests. Let us be your guide. Contact Us Today!

Call Jim at 905 409 9967

MORE MARKET INSIGHTS (Markham/Stouffville & Port Hope/Cobourg)

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Greetings, GTA homebuyers and sellers! As we reflect on the bustling real estate activities of March 2024, we're thrilled to share insights that paint a vivid picture of opportunity in our dynamic market. At Jim Stanton & Associates, our dedication to keeping you informed remains steadfast. Join us as we analyze the numbers from last month and explore what they mean for your future in real estate.

Market Summary

The GTA real estate market remained busy through March:

  • Sales Momentum: Compared to the same period last year, sales came down 4.5% yet there was a significant month-over-month increase of 17%.
  • Listing Dynamics: New listings experienced a year-over-year increase of 15% and a comparable month-over-month increase of 15%.
  • Price Trends: The average price demonstrated steady growth, with a 1.3% increase compared to last year and a stable increase of 1.16% from the previous month.
  • Seller's Advantage: With 1.9 months of inventory available, sellers continued to enjoy favorable conditions in the market.

What's happening locally? Durham & Toronto Market Insights

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

March 2024 Market Stats Toronto
 

Interest Rates

On March 6th the Bank of Canada held its policy rate at 5% for the 6th consecutive time. The next announcement is on April 10th. While many predict rates to come down at some point in 2024 consensus seems to be the Bank of Canada will hold again for the 7th time on April 10th. We'll update this post when the news comes in.

What Does This Mean for Buyers and Sellers?

For Buyers:

Buyers will benefit from increases in inventory as the Spring Market chugs along but they now have less time to buy with Days on Market for many property types across the GTA coming down. To ensure success buyers should:

  • Be Ready to Act: Don't miss out on an opportunity. With homes selling faster be prepared with your financing so you can make that offer on your dream home.

  • Date the Rate:  With rates expected to come down purchasing now will benefit you later in renewal. When rates do start to come down you can bet prices will go up.

For Sellers:

Despite a rise in sales and a surge in new listings, low inventory levels persist, intensifying buyer competition and fostering ample opportunities for sellers. While the spring market may be progressing, don't hesitate to act, even amidst the allure of awaiting more favorable mortgage rates. Consider this:

  • Seize the Moment: Higher demand could fetch you a premium price, potentially offsetting any future price increases when rates drop. Consider leveraging this opportunity to maximize returns, not only on the sale of your current property but also on your next home.

  • Favorable Outlook: With prices continuing to climb and properties spending less time on the market, now is an opportune time to strategize your next move. Confidence is key as positive trends persist in the market."


Conclusion:


In conclusion, March 2024 has unveiled a real estate landscape brimming with opportunities for both buyers and sellers across the GTA. Despite a slight dip in year-over-year sales, the market exhibited robust month-over-month growth, showcasing its resilience and dynamism. Sellers continue to enjoy favorable conditions with low inventory levels, while buyers can capitalize on the steady increase in available listings and stable pricing trends. As we eagerly anticipate the Bank of Canada's upcoming announcement on interest rates, it's imperative for buyers to act swiftly and sellers to seize the moment. Whether you're looking to enter the market or make a move, staying informed and proactive will be key to achieving your real estate goals in the months ahead. At Jim Stanton & Associates, we remain dedicated to guiding you through every step of your journey with expertise and insight.

Get the Help You Need

Regardless of the statistics and the market you have your own reasons for making a move. A big life event, ambitions, the need to upsize or downsize or even relocate. The key is to ensure you have someone in your corner representing your best interests. Let us be your guide. Contact Us Today!

 

MORE MARKET INSIGHTS (add stats for Markham/Stouffville & Port Hope/Cobourg)

March 2024 Market Stats Markham Stouffville


March 2024 Market Stats Port Hope & Cobourg
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February 2024 GTA Real Estate Market Update

Greetings, GTA homebuyers and sellers! As we step into March 2024, the real estate market continues to paint an exciting picture of growth and opportunity. At Jim Stanton & Associates, we're dedicated to providing you with the latest insights to help you make informed decisions in this dynamic environment. Let's delve into the numbers and what they mean for you.

Market Summary

In February 2024, the GTA real estate market witnessed notable shifts:

  • Sales Momentum: Compared to the same period last year, sales surged by an impressive 17.9%. Additionally, there was a significant month-over-month increase of 32%.
  • Listing Dynamics: New listings experienced a substantial uptick, with a year-over-year increase of 33.5% and a noteworthy month-over-month rise of 37%.
  • Price Trends: The average price demonstrated steady growth, with a 1.1% increase compared to last year and a substantial jump of almost 9% from the previous month.
  • Seller's Advantage: With 1.98 months of inventory available, sellers continued to enjoy favorable conditions in the market.

What's happening locally? Durham & Toronto Market Insights

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


February 2024 Market Stats Durham


February 2024 Market Stats Toronto

What Does This Mean for Buyers and Sellers?

For Buyers:

In a landscape where competition is heating up, but inventory is also rising (just not outpacing sales any longer). preparation is key. To capitalize on opportunities, buyers should:

  • Financial Readiness:  Ensure your finances are in order and work with a reputable lender who can provide guidance and support throughout the buying process.
  • Offer Strategy:  Familiarize yourself with different offer processes, including the Open Offer Process, to navigate negotiations effectively.
  • Market Value Analysis:  Gain insights into how list prices are determined and understand the true market value of a property to make informed decisions.

Opportunity Awaits:

With increasing inventory and the promise of even more homes hitting the market in the spring, now is an opportune time for buyers who are ready to make their move. By staying informed and prepared, buyers can navigate the competitive landscape with confidence and find the perfect home to suit their needs.

For Sellers:

While the market is currently favoring sellers, it's important to note that nothing is guaranteed. With the significant increase in new listings—up by 33.5% year-over-year and 37% month-over-month—buyers now have more options available to them. Consequently, not every home will attract multiple offers.

To position your home for success in this competitive landscape, focus on:

  • Accurate Pricing:  Ensure your home is priced competitively to attract the attention of potential buyers and encourage multiple offers.
  • Strategic Presentation:  Invest in staging and presenting your home in its best light to captivate buyers' attention and maximize its appeal.
  • Effective Marketing:  Work with a skilled real estate team, like Jim Stanton & Associates, to implement targeted marketing strategies that reach the right audience and generate interest in your property.

By prioritizing these key factors, you can increase the likelihood of receiving multiple offers and securing the highest and best price for your home.

Get the Help You Need:

At Jim Stanton & Associates, we're here to provide guidance and support tailored to your unique needs. Our team is dedicated to offering personalized assistance in preparing, pricing, and promoting your home based on current market dynamics. Let us be your trusted partners as you navigate the exciting journey of buying or selling real estate in the GTA.

Conclusion:

As we navigate the dynamic GTA real estate market, it's evident that opportunities abound for both buyers and sellers alike. With informed decisions and strategic guidance, you can make the most of these opportunities and achieve your real estate objectives. Reach out to Jim Stanton & Associates today, and let's embark on this journey together, ensuring your success every step of the way.

Contact US

MORE MARKET INSIGHTS (add stats for Markham/Stouffville & Port Hope/Cobourg)

February 2024 Market Stats Markham and Stouffville


February 2024 Market Stats Port Hope and Cobourg

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January Market Update

In January 2024, the average selling price of homes across the GTA experienced a one percent year-over-year decline, settling at $1,026,703 according to The MLS® Home Price Index Composite.

Home sales increased compared to the same month in 2023. This rise was partly due to certain homebuyers taking advantage of lower interest rates linked to fixed-rate mortgages.

New property listings also saw a year-over-year increase, the growth rate was lower than that of home sales resulting in tighter market conditions, compared to the previous year, suggesting the possibility of renewed price growth as we transition into the spring market.

The increased demand, coupled with a more modest increase in available homes, may contribute to a potential uptick in housing prices.

Durham & Toronto Market Insights

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

January 2024 Market Stats Durham


January 2024 Market Stats Toronto



Reflecting on last month's post


Last month we proposed the ways our housing market could go in 2024 largely hinging on the potential for mortgage rates to come down based on a reduction in the Bank of Canada's (BoC) policy and that of the fixed-rate bond market.


Well if January is any indication a return to a Seller's Market is imminent. With the BoC pausing rates for the 4th consecutive decision in January and fixed rates looking more favorable buyers have gotten a head start on the Spring Market.


What we are seeing on the ground

In a market characterized by both increased sales and a surge in property listings, home buyers and sellers find themselves navigating a dynamic and competitive landscape.

For Buyers

The spike in listings provides buyers with a broader array of options, but the heightened demand, particularly in the lower price range, has resulted in more properties receiving multiple offers. Despite the competitive atmosphere, there remains ample opportunity for savvy buyers to find a suitable property and engage in negotiations.

For Sellers

Sellers, on the other hand, are benefiting from the renewed demand, potentially receiving more attractive offers. Overall, the market's equilibrium between increased sales and listings creates an environment where both buyers and sellers must adapt to changing dynamics while recognizing opportunities for successful transactions.


MORE MARKET INSIGHTS (add stats for Markham/Stouffville & Port Hope/Cobourg)

January 2024 Market Stats Markham Stouffeville


January 2024 Market Stats Port Hope and Cobourg
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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.

TRREB October Market Watch Infor Graphic

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

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Hello, dear readers! As your trusted real estate expert, we're back with the latest scoop on the Greater Toronto Area (GTA) real estate market for September 2023. Let's get right into it:

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.

TRREB September 2023 Stats


Durham & Toronto Market Insights

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

September 2023 Market Stats Durham
September 2023 Market Stats Toronto

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

September 2023 Market Stats Markham Stouffville
September 2023 Market Stats Northumberland
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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.

TRREB August 2023 Stats

Durham & Toronto Market Insights

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

August 2023 Market Stats Durhamby Brian Stanton


August 2023 Market Stats Torontoby Brian Stanton


*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

August 2023 Market Stats Markham Stouffvilleby Brian Stanton
August 2023 Market Stats Northumberlandby Brian Stanton


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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.

 
July 2023 Market Stats
 

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.

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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.

1920x965-June 2023 Market Statsby Brian Stanton
 

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.

Read

What's Happening in The Durham Region

It's still a Seller's Market

We continue to see homes sell for well over the list price in multiple offers. 

Our own listings and those of many of our colleagues at Sutton Group-Heritage Realty Inc. are seeing a ton of traffic and selling in multiples.

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

1920x965-May 2023 Market Statsby Brian Stanton

What's the Takeaway?

Sellers can feel confident knowing there is a growing but limited pool of listings competing for a larger pool of buyers.

Buyers should be prepared when shopping and expect to compete for the home they want. It’s important to look at what comparable homes are selling for and view the list price of any property as a marketing tool rather than the asking price.

Could the market cool off?

On June 7th the Bank of Canada announced another increase to its policy rate by .25% This is the first increase since the bank indicated it would hold rates in January. While most speculators weren’t betting on further increases now that may be changing (CBC article).

The last time the bank increased rates it had a cooling effect on the market.

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

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