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

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 market in Durham Region?

It's still a Seller's Market

March is the 3rd consecutive month where detached homes, semis, and condos saw sold price increases for Durham as a whole.

Sales & New Listings are up in March and Days on the Market continue to decline in every market with the exception of Scugog.

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

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 can still find opportunities and while competition is heating up it's still not nearly what it was at the peak.

With interest rates holding and the market adjusting to the new normal. It will be interesting to see if more buyers enter the market and what impact that will have on the competition. More listings are hitting the market but it still doesn't seem to be keeping up with the demand.

1920x1048-Durham March 2023 by Brian Stanton

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.