Fall has officially begun, I can’t believe the leaves on the trees are already changing. With the change in season, there have been some changes to the Greater Toronto Area’s residential real estate market. The most dramatic changes have occurred to the volume of sales, there have been 44% fewer trades this September compared to last September. However, the average price of all home types is only down 4% compared to the same time period. Prices have begun to adjust but not as drastically as one may have thought in relation to the rise of mortgage rates. Inventory levels increased by 47% compared to last September, up to a total of 13,534. Historically speaking this number is still not enough to cool the continued interest in real estate.
With annual immigration numbers being between 400,000 to 500,000 per year for the foreseeable future, the supply of homes will continue to be limited.
The rental market has continued to be very busy. With borrowing costs increasing more buyers have chosen to sit on the sidelines in hopes to wait out the rate increases or to see if prices will continue to adjust down. With continued limits on the number of homes for sale and strong immigration numbers, pricing will continue to adjust slowly or stay flat compared to previous years as the market gets used to the new interest rate environment.
More opportunities continue to arise in the residential pre-construction market. Developers have had to get more and more creative with their promotions and deposit structures to attract buyer interest. To understand more about how to invest and where opportunities lie in this market please do not hesitate to reach out to me. As an organization, we have access to the best projects with the best developers across the province.
I hope you and your family are keeping well, please never hesitate to reach out to me with any of your real estate questions.