Well, I am surprised, but not astonished. Despite the high interest rates and the “nervous” predictions of how prices will be impacted, sales stats were similar to last year, both in terms of numbers and prices.
Toronto area realtors sold almost 4,700 homes in October, with the average home taking just 21 days to sell. Year to date the average sale price stands at $1,136,681 down 4.7% from the start of the year, but that’s not significant as one realizes that the “mix “of homes sold favours less expensive homes due to the higher cost of borrowing.
The difference that I see today versus a year ago, is that the stock of homes for sale, the inventory, is now at almost 20,000, roughly 4 months’ supply, the highest we have seen for some time. This is a reflection of the fact that while people want to buy, both higher interest rates and fear of the unknown is keeping them on the sidelines.
This 4-month inventory, these higher interest rates, represent a great buying opportunity for those able to buy. While prices haven’t dropped drastically as the negative nellies have predicted (These predictions have been circulating since the year 2,000, seriously!), the larger inventory allows a greater choice, versus, “this is the only home so buy or lose it!”
My sincere recommendation is; Get off of the sidelines! If you can afford to buy, do so! There is no doubt that prices will continue to rise, and I believe significantly, due to population growth and inflation.
Give me a call, let's chat about the great opportunities in this market and how I can help you achieve your goals. If you have a friend thinking of buying or selling, please let me know, I will do my utmost for them even if it’s only advice. I truly appreciate your help in helping make my business successful.
Have a great November!