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GTA REALTORS® Release October 2023 Stats

  • Lack of affordability and uncertainty remained issues for many would-be home buyers in the Greater Toronto Area (GTA) in October 2023. As a result, sales edged lower compared to last year.
  • Selling prices remained higher than last year’s levels. Record population growth and a relatively resilient GTA economy have kept the overall demand for housing strong.
  • More of that demand has been pointed at the rental market, as high borrowing costs and uncertainty on the direction of interest rates has seen many would-be home buyers remain on the sidelines in the short term. When mortgage rates start trending lower, home sales are predicted to pick up quickly.

RESIDENTIAL STATS

REALTORS® reported 4,646 GTA home sales through TRREB’s MLS® System in October 2023 – down 5.8 per cent compared to October 2022. On a month-over-month seasonally-adjusted basis, sales were also down in comparison to September.

New listings in October 2023 were up noticeably compared to the 12-year low reported in October 2022, but up more modestly compared to the 10-year average for October. New listings, on a seasonally adjusted basis, edged slightly lower month-over-month compared to September 2023.

The October 2023 MLS® Home Price Index Composite benchmark and the average selling price were both up on year-over-year basis, by 1.4 per cent and 3.5 per cent respectively. On a seasonally adjusted basis, the MLS® HPI Composite benchmark edged lower compared to September 2023 while the average selling price remained at a similar level. Both the MLS® HPI Composite benchmark and average price remained above the cyclical lows experienced at the beginning of 2023.


Competition between buyers remained strong enough to keep the average selling price above last year’s level in October and above the cyclical lows experienced in the first quarter of this year. The Bank of Canada also noted this resilience in its October statement. However, home prices remain well-below their record peak reached at the beginning of 2022, so lower home prices have mitigated the impact of higher borrowing costs to a certain degree.

In the current environment of extremely high borrowing costs, it is disappointing to see that there has been no relief for uninsured mortgage holders reaching the end of their current term. If these borrowers want to shop around for a more competitive rate, they are still forced to unrealistically qualify at rates approaching eight per cent. Following their most recent round of consultations, the Office of the Superintendent of Financial Institutions should have eliminated this qualification rule for those renewing their mortgages with a different institution.

CONDO SALE STATS

CONDO RENTAL STATS

COMMERCIAL STATS

The “All Leasing Activity (Sq. Ft.)” chart summarizes total industrial, commercial/retail and office square feet leased through Toronto MLS® regardless of pricing terms.
The “All Sales Activity” chart summarizes total industrial and commercial/retail and office sales through Toronto MLS® regardless of pricing terms.

In conjunction with the Toronto Regional Real Estate Board (TRREB) redistricting project, historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years.

Distinctive Real Estate Advisors Inc., Brokerage is pleased to present a recap of the latest market forecast release and October highlights from the Toronto Regional Real Estate Board (TRREB).

We’d welcome an opportunity to discuss the GTA Realtors Release October 2023 Stats. If you have any questions about our services, please contact our team.

High Interest Rates Impacting the Market, But Population Growth Will Soon Spur Demand

  • The impact of high borrowing costs, high inflation, uncertainty surrounding future Bank of Canada decisions and slower economic growth continued to weigh on Greater Toronto Area (GTA) home sales in September.
  • Despite the market being better-supplied with listings, the average selling price was up year-over-year.The short and medium-term outlooks for the GTA housing market are very different. In the short term, the consensus view is that borrowing costs will remain elevated until mid-2024, after which they will start to trend lower.
  • This suggests that we should start to see a marked uptick in demand for ownership housing in the second half of next year, as lower rates and record population growth spur an increase in buyers.
RESIDENTIAL STATS

In September 2023, GTA REALTORS® reported 4,642 home sales through TRREB’s MLS® System in September 2023 – down 7.1% compared to September 2022.

The year-over-year dip in sales was more pronounced for ground-oriented homes, particularly semi-detached houses and townhouses. On a month-over-month seasonally-adjusted basis, sales were also down slightly.

GTA home selling prices remain above the trough experienced early in the first quarter of 2023. However, we did experience a more balanced market in the summer and early fall, with listings increasing noticeably relative to sales.

This suggests that some buyers may benefit from more negotiating power, at least in the short term. This could help offset the impact of high borrowing cost.
What is seasonal adjustment? Seasonality refers to a monthly (or quarterly) pattern that occurs in roughly the same manner from one year to the next, e.g., sales are highest in the spring and lowest in the winter each year.
COMMERCIAL STATS

The “All Leasing Activity (Sq. Ft.)” chart summarizes total industrial, commercial/retail and office square feet leased through Toronto MLS® regardless of pricing terms.
The “All Sales Activity” chart summarizes total industrial and commercial/retail and office sales through Toronto MLS® regardless of pricing terms.

In conjunction with the Toronto Regional Real Estate Board (TRREB) redistricting project, historical data may be subject to revision moving forward. This could temporarily impact per cent change comparisons to data from previous years.

Distinctive Real Estate Advisors Inc., Brokerage is pleased to present a recap of the latest market forecast release and September highlights from the Toronto Regional Real Estate Board (TRREB).

We’d welcome an opportunity to discuss the High Interest Rates Impacting the Market, but Population Growth will Soon Spur Demand. If you have any questions about our services, please contact our team.

The Spring Market is almost here – Why should you list and how?

The spring market is right around the corner, and if you’re thinking of listing your home, right now is the time to get started.

With April, May and June showing the highest historical averages of home sales in the GTA, that is the time to have your listing on the market. But why start now? Because listing your home right is a bit of a science.

TREB Toronto MLS Avg Resale Price 2013-2016

Not only are these months the busiest in Toronto real estate, but they are the spring months where homes command the best price. So if you’re looking to sell your home, now is the time to start.

Here are a few tips of how to get started:

Hire a Great Realtor

Interview several realtors and make sure they’re a good fit with what you’re trying to achieve with the sale of your home. We know a few if you don’t!

A realtor will be able to help you price your home and will be able to see your home as objectively as the buyers in the market: something you ought to consider if you’re looking to command the best price. Realtors will also help connect you with the best professionals in the marketplace to help you get your home market-ready. This doesn’t happen overnight, so start early if you’re looking to sell in the spring.

Get small repairs done around the house

You know the towel bar that fell off the wall a few months ago? Or the ding in the drywall from moving furniture? This is the time to fix all of these things. Larger repairs like a new roof or furnace can be negotiated with the sale price of the home, but smaller repairs can cost very little money and can make or break a sale.

Even if the repairs required on your property are insignificant in cost and effort, home buyers can be distracted from the value and beauty of your home and will focus on the small things – making them negotiate harder on price or walk away all together for a home that is in “move-in condition”.

Paint vibrant rooms in neutral tones

Bright yellow rooms might help you feel alive on dreary days, but when you’re listing your home, you’re trying to appeal to the masses. Many buyers have little vision and cannot picture themselves living in a space that is very customized to the taste of the homeowner. So paint it grey or another neutral tone and help the future buyer of your property feel right at home.

Consider hiring a stager

Stagers can make all the difference when it comes to selling your home. They are well-versed in what people like and how to make your space look as large and versatile as possible. Spending a few hundred dollars on a stager to command a few thousand more on your list price, or to sell your home more quickly, is a wise decision. This is one area where many people are penny-wise and pound foolish, so make your listing stand out and don’t fall into this trap.

Spring cleanup for curb appeal

Some buyers won’t even come into your home for a tour if the outside isn’t appealing to them. As the winter leaves us, make sure your home continues to look its best. This will increase the number of calls your agent gets off the for sale sign as well.

Hire a pressure washing company to wash the exterior of your home and your windows, sweep your driveway and plant a garden when the warmer weather is upon us. If your garage door or front door need a coat of paint, put one on. These are the small details that help future buyers picture their children playing outside and their families coming to visit their new home.


 

Distinctive Advisors is here to help you get the best price for your home in this busy spring market. With tight supply of Toronto homes, this is a great time to list. Contact us today to start getting your home ready for the spring market.

2016 Change to Mortgage Qualifying Rules for First-Time Home Buyers — Explained

You might remember an uproar regarding real estate in October 2016, but what was that all about?

Without notice or preparation, the Canadian government announced on October 3rd, 2016 several major changes to mortgage rules aimed at curbing high demand in two of the country’s fastest growing markets — Toronto and Vancouver.

Bank of Canada implemented what they call a “stress test” for first-time buyers, forcing them to qualify for their mortgages at the Bank of Canada posted rate or 4.64% rather than the actual mortgage rates, reducing buying power for first-time home buyers across the board.

Why?

This was a very clear message from the Bank of Canada that interest rates would soon start rising, and true to form, they’ve already started. Since first-time home buyers often stretch their budgets and take on more than they can afford (and many lenders don’t prevent this from happening) this is the government’s way of protecting our housing market from a potential crash as a result of rising interest rates.

What’s the actual impact? (view the CBC article here)

Although this may temporarily slow the market in some areas, this move is expected to have positive ripple effects on the economy and is a much needed shifting of the winds for Canada.

In 2016, a mere 33 percent of individuals looking to purchase a home were first-time home buyers and in 2017, stats are showing over 50 percent of people with an eye for the home buying market will be first time purchasers. Even more astounding, over 60 percent of those buyers are under the age of 35. 2017 will most likely be the year that the Millennials begin their real estate takeover and the market will never be the same.

Looking for your first home or know someone who is? Contact a member of our team today to learn how we can help you with your real estate transaction and mortgage financing needs.

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