The February numbers are in and the future looks bright!
Despite home sales being down 47% year over year, month to month the average price is up in all categories. New listings remain low year over year but are up from last month. Days on market dropped from 29 to 22 from last month. These are all positive changes with respect to increase in real estate value and upward trajectory. Remember despite what the media tells you about being down 47%, this figure is a comparison made based on the highest grossing year of all time! This is due to record low interest and government grants initiated during the pandemic. In reality, we are seeing prices today which more closely resemble sales in 2020 and 2021.
In February the government announced a pause on future interest rate increases. On March 8th, during the scheduled announcement by the Bank of Canada, no interest rate increased. Inflation is currently down to 5.9% from 8% last July. Furthermore, there is talk of an interest rate decrease in the near future. Remember, you’re dating the interest rate but marrying the home!
We are still in a buyer’s market, but the advantage may shift soon!
For the buyers, the best opportunities still lie within GTA condos and 905 detached and semi-detached homes. For sellers, inventory remains low, and we are seeing multiples offers on homes in the GTA area consistently.
What drives demand?
Canada remains a great place to live. Forbes Magazine recently rated the Toronto area the #8 best city to live in the world, Calgary and Vancouver are also within the top 10. Unemployment is down to a 10 year low at 5%, a large decline from the previous 7.4%. Generally, people are making more money with high levels of savings. Canadian immigration from 2020 through 2025 is estimated at 2 million newcomers who will all need housing. Canada’s population growth is estimated to be approximately 43 million people by the year 2043 and in the GTA 17 million by the year 2051!
People need homes!
Whether you are considering buying or selling I am here to answer all questions you may have. Let’s connect over the phone, zoom call or in person. I am here to help.
