Despite higher borrowing costs, 5,038 homes sold in September, down from last year’s record levels. Sales took place in all areas with all types of homes throughout the GTA, bringing the average sale price year-to-date to $1,212,963, up 10.7% since the start of the year.
It’s confusing, isn’t it? Prices are supposed to be down but yet are up? This disconnect was caused by average prices increasing 28% in February and March this year. Prices are averaging down slowly from those numbers, but we will end 2022 with a 6-8% price increase over 2021.
This also explains why despite the negative news and borrowing rate increases sales are still taking place. People who purchased prior to the start of 2021 have seen great increases in their equity and have a great opportunity to upgrade their home. Condominiums owners are taking this opportunity to upgrade to that white picket fence that is everyone’s goal. Increases of 12-15% in rental rates have attracted investors into the market. We’re lucky to be in a large city like Toronto where there are always people who want to buy or sell because of their personal circumstances.
There is a market, and there is a shortage of available homes for sale, and the future of home ownership in the GTA is extremely positive. There is no question that there is a lull in the market, with some no longer able to qualify to purchase. However, there are many others who are qualified to buy want to buy but have decided not to decide. I think this is a major mistake. As Warren Buffett said, go against the herd!
In times like these it’s important to deal with an experienced agent and company that can help you through the confusion and intricacies of the market. An agent like myself and a company like Re/Max Realtron Realty Inc.
Give me a call, let’s discuss the market and the opportunities that exist. If it doesn’t make sense to you, I will be the first one to say so, but let’s talk and see if this might be a great time for you to take a step forward for you and your family. Let’s talk, after all you have a friend in real estate!