Is the market stabilizing? This could be your sign!: December 2023 Market Update
Is the market stabilizing?⚖️This could be your sign!🤔
Let our Founder, Amy Youngren, explain what’s going on in Real Estate. Watch below:
After a🎢 rollercoaster year for the GTA housing market, Jan 2023 saw a similar range of sales & prices to Dec 2022. Nevertheless, compared with pre-interest rate hikes in early 2021, both sales numbers & average selling price have decreased 📉 by over 40% - starkly illustrating just how much higher borrowing costs affect affordability. That being said, something substantial has transpired since the last market data was released that isn’t yet reflected in the numbers we are seeing today: the Bank of Canada’s March rate increase📈. There are three key factors to note from that announcement:
1️⃣A .25% increase was the lowest rates could have been raised, & they opted for that
2️⃣That lower increase instills confidence that the worst of the rate shock we’ve experienced could now be over
3️⃣Inflation is moving in the right direction - down - a signal that we should potentially see the rate hold being predicted
Canada's real estate market is gaining ‘some’ traction. The lower rate increase, record population growth & a tight labour market are all contributors. This is encouraging news & will likely entice prospective buyers back into the market in the months to come.
If you’re a buyer that’s been sitting on the sidelines waiting for the market to hit bottom (not that any of us has a crystal ball), this could be your sign. There is a strong indication that the market is stabilizing w/ evidence that a healthier spring market is heading our way.
Buyers, get your pre-approval in place asap🏃♂️(if you haven’t already). Prices are down an average of 16.4% across all home types in the GTA & because there are less homes for sale than buyers would like, you will need to be ready to jump when you find the right opportunity. And sellers? Homes are taking longer to sell (41 days on average📆) so we still have to be realistic w/ your timeline & price expectations. But here’s the thing: buyers are regaining their confidence & moving off the sidelines. If listing inventory (the number of homes for sale) stays low, therein lies the opportunity for you.