The GTA Housing Market Rollercoaster: A Look at October 2023
The Greater Toronto Area (GTA) saw some challenges in its housing market in September due to high borrowing costs, rising prices, uncertainty about what the Bank of Canada might do, and slower economic growth. Even though there were more homes available for sale, the average selling price went up compared to the previous year.
Paul Baron, the head of TRREB, thinks the future of the GTA housing market looks different in the short term and medium term. In the short term, most people expect borrowing costs to stay high until around mid-2024. After that, they should start going down. This means we might see more people wanting to buy homes in the second half of next year when lower rates and a growing population make buying more attractive.
In September 2023, REALTORS® reported 4,642 home sales through TRREB’s MLS® System. That's 7.1% less than in September 2022. The drop in sales was more noticeable for houses with yards, like semi-detached and townhouses. Sales also went down a bit when you look at them month by month, taking the season into account.
More homes were listed for sale compared to last year, especially considering how low the numbers were in September 2022. The number of homes available for sale also increased when you consider the season's changes.
The MLS® Home Price Index (HPI) Composite benchmark went up by 2.4% compared to the previous year. The average selling price went up by three percent during the same time. Looking at them month by month with the season's adjustments, both the average selling price and the MLS® HPI Composite benchmark only went down by less than one percent.
Jason Mercer, the housing expert at TRREB, says that even though home prices in the GTA are higher than they were in early 2023, we've seen a more balanced market in the summer and early fall. There are more homes for sale compared to the number of sales, which means some buyers might have more room to negotiate, at least for a little while. This could help offset the impact of high borrowing costs.
TRREB's surveys show that about half of the people looking to buy a home in Toronto are first-time buyers each year. The average price of a condo in Toronto is over $700,000. But the exemption level for first-time buyers from the City's land transfer tax has stayed at $400,000 for 15 years. TRREB is happy that Toronto City Council is thinking about changing this, and they've asked the City staff to look into it. TRREB's CEO, John DiMichele, wants all levels of government to work together and fix the problems in housing and taxes because they are currently working against each other, creating a housing crisis.
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In Local Real Estate News
In the town of Georgina, the real estate market has undergone a remarkable transformation, shifting from a seller's market to a Balanced Market with 6.72 months of inventory as of last month. While this might spark hesitation for those considering listing their homes, the key to success lies in a well-crafted go-to-market strategy.
The crucial message is this: Listing your home today doesn't necessarily mean it won't find a new owner before Christmas. In fact, with the right approach, your property could be the perfect holiday gift for someone. The secret sauce? Enlist the expertise of seasoned realtors who understand the nuances of a changing market. They can guide you through the intricacies, ensuring your move is not just a transaction, but a strategic success.
So, if the thought of a new home dances in your future plans, fear not the market fluctuations. Embrace the opportunity, and let experienced real estate professionals pave the way for a smooth transition. After all, in the world of real estate, a well-played strategy can be the key to turning the market tide in your favor.
A look at sale prices in the Town of Georgina over time
Average sale price is based on firm transactions entered into the TRREB MLS® System as reported by the Toronto Regional Housing Market Tables
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