October market update
In September 2023, Toronto's real estate market grappled with the lingering effects of high borrowing costs, elevated inflation, uncertainty surrounding future Bank of Canada decisions, and slower economic growth. Despite an increase in listings, Greater Toronto Area home sales experienced a year-over-year decline of 7.1%, with ground-oriented homes like semi-detached houses and townhouses seeing more pronounced drops. However, the short-term outlook suggests a potential rebound in demand for ownership housing in the second half of the following year as borrowing costs are expected to start trending lower. The MLS® Home Price Index Composite benchmark increased by 2.4% year-over-year, and the average selling price rose by 3% over the same period, though both experienced slight month-over-month decreases.
Is It The Right Time To Buy?
Many people confuse this question, with the question at the top of their minds. “Can I buy a home today?” While the answer to this question really depends on every individual’s unique financial situation and the answer to the question, is it the right time to buy…might not be what most people expect.
Let’s be clear, in today's market, the answer to the question "Is real estate affordable?" is a resounding no. Why? There are several key factors at play. First and foremost, high-interest rates are making borrowing money more expensive, which, in turn, makes homeownership less accessible for many. Additionally, current lending conditions have tightened, making it harder for potential buyers to secure a mortgage. These factors combined have contributed to the perception that it’s not the right time to make a purchase.
However, while it might not be the most affordable time to buy real estate, it is, in fact, a good time to make a purchase. You see, many buyers are finding themselves priced out of the market, unable to afford a home. In situations like today where a lot of buyers can't enter the market, the buyers that can are getting it at a highly discounted price. For this reason large real estate companies and real estate funds are swooping in aggressively to seize opportunities.
So, if you're contemplating whether it's the right time to buy real estate, the answer is yes!
While affordability may be a challenge for many, those that don’t require a large mortgage or have the means to purchase in todays market are finding fantastic opportunities in the current market climate.
As a potential buyer, it's essential to assess your financial situation, weigh the risks and rewards, and determine if now is the right time for you to make a move in the real estate market.
The real estate landscape is complex and ever-evolving. While affordability may be a concern, the right time to buy is right now. So while others continue to sit on the sidelines, take the step that most people won’t and find out what you can afford to buy today!
Tips To Get You Moving!
In today's fast-paced real estate market, the first and most crucial step for both homebuyers and sellers is to pause for a moment and evaluate their motivations, financial situations, and budgets. This initial assessment will set the stage for a smooth and informed journey in the real estate landscape.
Many potential buyers, especially first-timers, find themselves hesitant to make a move due to higher interest rates and the stringent stress test. However, if you're among those who can make a move, whether you're a homeowner looking to upgrade, downsize, or a buyer who has patiently saved for years, the current market offers opportunities worth exploring.
The number one tip for navigating this dynamic market is to choose your realtor wisely. The Toronto real estate scene has evolved, and your Realtors' abilities and experience can significantly impact your experience. While all Realtors may appear to have the same credentials, it's crucial to consider their past experiences and how they've handled similar market conditions.
I began my real estate career back in 2007 and have weathered various market cycles, including the financial crisis, when the market conditions were much like what we see today - high inventory and decreasing prices. This experience is essential when negotiating the best prices whether you are buying or selling.
If you're contemplating a move, I'd be delighted to discuss your goals and how my experience can help you achieve them successfully. Don't hesitate to reach out; I'm here to assist you in making informed decisions in today's real estate market.