I hope winter is treating you as well as can be expected. I can’t believe it is March already, we are only a few weeks away from the end of the first quarter of the year!
An interesting update on the housing market as home prices have dropped over last year’s record peak in February 2022. The drop in prices is assisting in mitigating the cost of higher mortgage rates and borrowing costs. The average sale price in February was approximately $1,095,617, down 18% compared to February 2022 but up almost 5% compared to the same time in 2021.
Months of inventory levels dropped slightly and are now hovering around two months. This inventory represents all home types, should the Toronto Regional Real Estate Board not sign-up another listing, the GTA would be sold out of residential real estate in just two months.
There has been an increased demand for real estate that is beginning to run up against a constrained supply of listings which is leading to increased competition amongst buyers. We feel this will eventually lead to renewed price growth in many areas of the market.
The residential new construction market has also begun to pick-up with the Bank of Canada making their intentions clear to hold interest rates at their current levels, more buyers and investors are engaging in this area of the market. With limited inventory of available resale homes, first time buyers, up-sizers and down-sizers have taken a keen interest in new construction opportunities.
If you have any real estate questions please never hesitate to reach out to me. I look forward to connecting with you soon.