November 2023 Newsletter

The impact of high borrowing costs, high inflation, uncertainty surrounding future Bank of Canada decisions and slower economic growth continued to weigh on Greater Toronto Area (GTA) home sales in September. However, despite the market being better-supplied with listings, the average selling price was up year-over-year.
“The short and medium-term outlooks for the GTA housing market are very different. In the short term, the consensus view is that borrowing costs will remain elevated until mid-2024, after which they will start to trend lower. This suggests that we should start to see a marked uptick in demand for ownership housing in the second half of next year, as lower rates and record population growth spur an increase in buyers,” said TRREB President Paul Baron.
REALTORS® reported 4,642 home sales through TRREB’s MLS® System in September 2023 – down 7.1 per cent compared to September 2022. The year-over-year dip in sales was more pronounced for ground-oriented homes, particularly semi-detached houses and townhouses. On a month-over-month seasonally-adjusted basis, sales were also down slightly.
New listings were up strongly on a year-over-year basis from the extremely low level in September 2022. The number of listings also trended upward on a month-over-month seasonally adjusted basis.
“GTA home selling prices remain above the trough experienced early in the first quarter of 2023. However, we did experience a more balanced market in the summer and early fall, with listings increasing noticeably relative to sales. This suggests that some buyers may benefit from more negotiating power, at least in the short term. This could help offset the impact of high borrowing costs,” said TRREB Chief Market Analyst Jason Mercer.

Analysis: What this means for York Region’s home sellers and buyers.
As a whole, the real estate market in York Region has entered into the unfamiliar territory of a Buyer’s Market. This shift is largely due to an increase in the supply of homes for sale. More properties on the market = more choice for buyers= more negotiating power.

This shift in the balance of power from Sellers to Buyers has had a direct and immediate effect on real estate sales:

• fewer homes are selling each week
• Properties are taking longer to sell
• 95% of sale prices are below asking price
• The majority of sales are conditional, usually upon buyer financing and/or property inspection;
• Sale prices are holding steady in most areas and property categories for our Region.

As an experienced Realtor* these dips in the market are nothing new. The challenges of the current market require us to pivot our tactics to still deliver the highest possible results for our Seller clients.
Take pricing a property for sale, as an example. In the previous Seller’s market, we often priced properties below fair market value in the expectation of generating multiple offers. Buyer’s were understandably reluctant to get into bidding wars, but really had no other choice since “plunge pricing” and offer hold-backs were the norm. 
Not so now! The marketplace has largely reverted to the traditional practice of pricing properties at slightly above the final expected sale price, leaving a little room for negotiation. Buyers of course want the lowest price possible. As your Realtor* it’s my mandate to maximize the price outcome by negotiating aggressively to achieve as close to asking as possible. However, in order to be firm in my negotiating stance, I really work hard to make sure that the list price is accurate. Too low, and we risk leaving money on the table; too high, and we risk sitting unsold. Along with property preparation (see last month’s blog) correct property pricing has been a key element in our recent sellers’ success.  

If you’d like to receive an updated property evaluation, text or call me at 416-460-5636 and I’ll get started. You’ll be provided with a real-time evaluation of neighborhood sales, trends and inventory in our Pinpoint Price Analysis.

 I am pleased and proud to be participating in The Ontario Society of Senior Citizens Organizations “Aging: The Future is Here” speaker series. 

 There’s been some great news for buyers lately. Most recently, the Bank of Canada decided not to raise interest rates so hope is starting to return that mortgage rates might have peaked. There is one more rate review before the end of the year, but many experts predict that the poor economy right now makes another interest rate hike unlikely. 
The second important development for buyers is the inception early this year of the tax-free First Home Savings Account. This is a registered plan with financial institutions that allows prospective first-time home buyers to save money toward a down payment, much like an RRSP. 

For more information see 

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html

For the first-time buyers in your life, I highly recommend registering for the Keller Mortgages Canada seminar held this month on Nov 28, 2023 06:00 PM. You’ll get an overview of all the current incentives open to first-time buyers, as well as helpful advice about navigating the qualification process. Free registration for zoom link at kellermortgagecanada.com/webinars

Do you belong to a social, cultural, seniors or faith-based group looking for an engaging speaker? We have a series of five prepared talks that cover broadly-appealing topics related to seniors, downsizing and real estate. There is absolutely no cost, obligation or sales pitch, and each talk can be tailored to the specifics of the group. All workbooks, AV presentations & equipment, as well as a door prize are provided.  
Please email me at sharonparenteau@kw.com to check for availability starting in Winter 2024.

Again this year we will be distributing garden waste bags free for the asking. It’s just our little way of showing appreciation to our clients. And… if you’d like to discuss housing options with less exterior maintenance, we can arrange that, too! 🙂
To request your free bags, text me at 416-460-5636 with your name and address.