All eyes were on the Bank of Canada on Wednesday, waiting to confirm if the predictions would be true. And they were: the nation’s central bank announced that their policy interest rate would remain at 5% and no further increase would take place at this time; a welcomed but not surprising announcement. However, the question remains to be seen: are we in the clear from further rate increases in 2024? The feedback seems to be divided and only time will tell when the January announcement takes place.
What Is Actually Happening?🤔
High borrowing costs and uncertain economic conditions remain a hot topic at most dinner tables throughout the GTA. Despite the Bank of Canada’s third rate hold this fall, many homeowners are feeling the weight of increased mortgage payments which has sent a ripple effect to potential buyers; most of whom have decided to step to the sidelines for the time being and wait out the uncertainty.
This factor, combined with a 16.5% increase in inventory (ie. the number of homes and condos for sale) since November last year, has resulted in a substantially quieter fall real estate market with just 4,236 sales across the entire Greater Toronto population.
Although some property types and neighbourhoods have remained steady (think trendy Toronto areas), and, believe it or not, the occasional bidding war is still happening, most of the GTA is experiencing price decreases, putting the average sale price at $1,082,179, almost on par with the same time last year.
Let’s Look Closer At The Numbers 🔢
Sales are down 9.68% since October
And down 6% since last year
New Listings are up 16.50% since last year
But down 36.53% since October
Prices are up 0.30% year over year
But down 4.04% since last month
Average sale price is $1,082,179
Average days on market = 25 Days
What You Need To Know Right Now 🔎
It’s no secret: prices are low, rates are high and everything still feels uncertain. As always, your goals - not the media - are what should drive your real estate decision-making right now.
Buyers - if you can afford to get into the market, you should consider doing so! Especially if you’ve been priced out for a long time. With prices being the lowest we’ve seen in a very long time, and the talk of rates going down in 2024, there is definitely opportunity for you now (because when rates go down, buyers will flood back into the market and that drives up prices again). Even if you buy now with higher rates, get into the market where you can comfortably afford and then be in a position to refinance when rates decrease down the road.
Sellers - strategy and clear, realistic expectations must be the standard. A solid sales and marketing plan is an absolute must to navigate today’s market conditions and longer sales cycles.
Heading into 2024, while affordability and uncertainty continue to impact the market, inflation is getting more and more under control and the demand for housing remains strong due to the GTA’s population growth.
Our best advice? Don’t try to navigate this alone. We are here to help you achieve your real estate goals when it’s right for you.
