No great surprises as the Toronto Real Estate Board unveiled the January sales numbers. 3,100 homes sold out of 9,299 homes available for sale. Throughout the GTA, homes on average sold in 29 days provided they were priced within 5% of realistic value. (This is where a professional agent can help their clients by doing realistic CMAs and being honest with their sellers.)
The major factor impacting the residential real estate market is the Bank of Canada’s increasing borrowing rates. This policy has eliminated local buyers from purchasing their homes and forcing them into rental units which has created a massive shortage and the resulting price increases for rental units. It seems our government wants to kill inflation regardless of the hardships it will create for Canadians. The other factor influencing our market is the fear of the unknown. Many buyers have decided to sit on the sidelines and watch the market as they do not know what will happen.
Well, I know what will happen, I just do not know exactly when. With over 1,000,000 new immigrants coming to Canada, builders discouraged to build new housing units due to government red tape, high building permit prices and slow government commitment to supply infrastructure like water and sewage lines, prices will continue to increase in the GTA! It’s as inevitable as 2 trains rushing toward each other on the same track!
Looking at this chart below you can see that our current interest rates are still reasonable and historically average and it’s only the last 15 years where we had ultra-low rates that we might not see again. While I believe our current rates will drop, the buyers who most quickly adjust to the new rates will be the winners over time.
There are great opportunities in this market. It is a great time to buy an investment property, to upgrade your home or to trade in your condominium for that white picket fence in suburbia. As the saying goes, “Fortune Favours the Bold! Now is the time to explore your options. Let me put my experience and professionalism to help guide you.
Give me a call 416-560-4468, let’s talk!
Have a great February,
PS….I’m never too busy for your referrals!