February 2024 Newsletter

Real Estate Market Report

GTA December Stats and 2023 Market in review

The number of Greater Toronto Area (GTA) home sales in 2023 came in at less than 70,000 due to affordability issues brought about by high mortgage rates.
“High borrowing costs coupled with unrealistic federal mortgage qualification standards resulted in an unaffordable home ownership market for many households in 2023. With that said, relief seems to be on the horizon. Borrowing costs are expected to trend lower in 2024. Lower mortgage rates coupled with a relatively resilient economy should see a rebound in home sales this year,” said new Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce.  
On a seasonally adjusted monthly basis, sales increased compared to November, while new listings declined for the third straight month. The average selling price for all home types in 2023 was $1,126,604, representing a 5.4 per cent decline compared to 2022. 
“Buyers who were active in the market benefitted from more choice throughout 2023. This allowed many of these buyers to negotiate lower selling prices, alleviating some of the impact of higher borrowing costs. Assuming borrowing costs trend lower this year, look for tighter market conditions to prompt renewed price growth in the months ahead,” said TRREB Chief Market Analyst Jason Mercer. 

What this means for buyers and sellers

In the delicate balance between supply and demand, it has largely been buyers who have benefitted the slight increase in the number of listings in the closing weeks of the year. Buyers enjoyed the rare opportunity to shop and compare, with very few “offer dates” or bidding wars. Offers to purchase were generally below list price, and sellers had to again entertain buyers with conditions as part of their offers. The seasonally sluggish market around the holidays gave buyers a bit of respite from “fear of missing out.” Ironically, these favourable conditions seemed to demotivate buyers, many of whom took a “wait and see” approach to house hunting. December was sllooow.
If you know a buyer who’s on the fence about purchasing right now, do them a favour and give them this warning: “The real estate market is about to get very hot!” THIS is your 90-day emergency buy window!
Why? The unchanging economic factors - low employment, increasing immigration, and inadequate housing inventory - have been mitigated recently by only one factor: increasing interest rates. The recent pause in hikes has reignited buyer activity. Colleagues are reporting line ups for buyers to get into open houses, and properties receiving dozens of offers. What a difference a few weeks makes!

As for sellers contemplating a move, the same warning applies: you’ve got 60-90 days until the next best time to sell! Spring 2024 is anticipated to be one of the best selling seasons in recent years. 
Not sure how to get started? Read our “Annual Equity Review” offer below and click on the link to request your report.

Here’s a list of articles I’ve been curating over the past few weeks:

• “Five Forces Driving Ontario Real Estate” - filled with interactive graphs and charts, perfect for the number-cruncher looking for the bigger picture https://www.mortgagesandbox.com/five-forces-driving-ontario-real-estate
• “2024 Home Selling: Mistakes to Avoid for a Successful Sale” - kinda self-explanatory, but a few good reminders nonetheless -​​ https://ca.investing.com/news/personal-finance-news/2024-home-selling-mistakes-to-avoid-for-a-successful-sale-3247246
• “The ‘Move Out’ Method to Declutter Your Home” - maybe a bit extreme, but hey, maybe it works? https://lifehacker.com/home/declutter-home-using-move-out-method
• REALTORS® Answer Your ‘What-Ifs’ About Buying - https://www.realtor.ca/blog/realtors-answer-your-what-ifs-about-buying-and-selling/34811/1363?utm_source=living-room-newsletter&utm_medium=email&utm_campaign=jan-2024&utm_content=version-a