I hope you are keeping well and getting ready for the holiday season. As we near the holiday's and the end of 2022 I wanted to share a brief update on the Residential Real Estate Market.
As interest rates increase and the cost of borrowing rises along, the volume of transactions has begun to decline at a faster pace, down 50% across the GTA compared to November of last year. In turn, inventory of available homes has begun to increase, this increase, however, has not been as fast as one might think. Last year's insatiable demand for real estate created a pace that was not sustainable, therefore, today's current inventory levels of almost 12,000 homes available for sale of all types, up 96% over the same time last year, can be considered quite normal. Months of available inventory is currently trending at just over two and half months, which is still considered a Seller's Market, a Buyer's Market would put inventory levels closer to four plus months.
The sales volume for condominiums slowed down by 55% compared to last November. Condominiums are more affordable assets compared to freehold products(townhomes, semis, & detached), therefore prices have remained constant with little movement.
The new construction market has adjusted alongside the rise in borrowing rates. The absorption of new condominium product declined by 26% during the third quarter of 2022 compared to the third quarter of 2021. This adjustment has opened the door to opportunities that were not otherwise available in recent years when almost every project launched was selling out. Developers are offering incentives rarely ever seen. If you were ever considering the purchase of an investment property, there are some great options in new construction at the moment.
I am always available to assist you with your real estate questions, please never hesitate to connect with me, I am here to help.
I wish you and your family an amazing holiday season and I look forward to speaking with you soon.
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