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 8^th, 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.

The 2022 final numbers are in, and they are fascinating! The Toronto market has not seen anything like this since the early 90’s.  The first quarter had an incredible uptick in value followed by devaluation and stabilization in most areas of the GTA. So, what does this mean for both buyers & sellers and what should they expect in 2023?

The current sales volume is currently the lowest it has been since 2001.  Most of these sales took place in the first quarter of this past year. Additionally, the average days on the market increased from 14 days in 2021 to 27 days in 2022.   Interestingly, the average price of condos has maintained their value from the same time last year, while semi-detached and detached homes have decreased in this same period.  Condo Apartments have not seen much of a decrease in 2022 as they are rebounding from the significant drop in value at the start of the pandemic.

We have seen a dramatic increase in interest rates in 2022. Furthermore, the Bank of Canada has disclosed their interest rate announcement dates for 2023.  In total, there are eight dates set for 2023, the first of which is Jan 25^th followed by March 8^th.  Inflation is a major concern for the government and our communities. There is talk of a potential increase next time they meet.

At this time, we are in a buyers’ market, but the amount which exists is highly dependent on the location where you hold or wish to invest.  Outside the Toronto/GTA area is more tilted towards higher levels of the buyers’ market factor; Durham, Markham, Oakville, Brampton, etc.  

New listings are down 21.3% from this time last year.  In December, the average price was down 9.2% from the same time last year.  That being said, every December for the last twenty years has a seen a decline in volume and average price.  January, February, and the remainder of the first quarter will be telling in terms of where the market is going in 2023.

Follow the link to view the latest market stats with respect to the GTA area. If you would like to review up-to-date market stats in your preferred community, send me a message. I’m happy to help.

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