The Toronto real estate numbers are in, and while I am disappointed that there were only 4,642 homes sold, I am not surprised given the lack of confidence as to whether the Bank of Canada will implement another rate hike in October. Whenever there is uncertainty, people tend to sit on the sidelines and decide not to decide.
While there is a lack of uncertainty about whether the “last rate hike” will happen or not, (If unemployment numbers go up significantly, the rate will not go up and vice versa), there is no uncertainty about the demand for real estate and the shortage of available housing in the GTA.
In the short term, once the Bank of Canada announces no further rate hikes, we will see a jump in sales as confidence returns with stability. In the medium term, all experts predict that interest rates will start to drop by late spring/early summer of 2024 and that will allow many buyers into the market as they will be able to qualify for mortgages they could not qualify before. In the long term, fall of 2024 and past, the market is expected to continue its upward trend as demand will continue to outpace supply. Even today, well priced homes are selling in under 3 weeks! The future looks rosy for the real estate market in the GTA!
If you are considering purchasing your first home or upgrading your current home, here are my recommendations.
1. Do it! Get off the sidelines where most people are sitting. As Warren Buffet said, “Instead, imagine zigging when everyone else is zagging. It is tough to go against the crowd, but, when you do, a couple natural phenomenon happen. First, you are more likely to find new opportunities, as you will be seeing things that others don't.”
2. Look at variable rate mortgages, they are the best bet for getting into this market!
3. Give me a call! You have a friend in real estate! Let’s see if I can help you achieve your real estate and investment goals!
Have a great October!