The Toronto Regional Real Estate Board has issued its report for November 2022. They have not yet stated that the market is headed for a crash, but you can decide on your own after reading some of the information they provide.
Looking at the prices paid for homes recently sold, we see a declining slope, especially if you look at month over month prices and the selling prices from one year ago. The data also shows that sales are down related to the number of sales last year. However, keep in mind that last year we were just breaking out of the Covid restrictions, which meant many more people were venturing out and were able to shop in person versus online.
The Number of New Listings
New listings have also dropped in volume, but only by a small amount. At this point, the number of listings are quite a bit higher than last year. So, that means there are a number of good properties still out there waiting to be sold.
Interest rates are still the main concern for many, the predictions are that the rates will continue to increase, at least in the relatively near future. While this can limit some people to qualify for a mortgage, there are still lenders out there who are willing to go the extra mile to find good rates for buyers.
Suspicion of a Recession
Suspicion of a recession is still looming. The general concensus is that eventually, it will happen. The big question is when! Some predictors say early in the new year but other forecasters say it won’t hit until much later in the year and perhaps not until the following. Economists look at a wide range of factors, including the timing of any anti-inflation actions that governments will take. They are also looking at the world wide perspective as well as the steps that our own government may choose to implement.
A huge impact on the local market is the continued influx of immigrants into Canada and the Greater Toronto area. Fewer new builds will keep the existing residences more dynamic and can support the asking prices we are still seeing. This can present an interesting opportunity for individuals who have contemplated getting into the rental property arena. Proper financing, purchasing property and then renting it to families new to the area can create an additional revenue stream for the property owner.
As the population ages, there are more concerns about ongoing income for retirees. In addition, with more people in the active workforce able to work remotely, these folks have a more flexible schedule and better able to manage rental properties in addition to a traditional job.
The Bottom Line
The bottom line is that we are still in a watch-and-wait mode regarding the economy. For investors, there are some excellent upsides to purchasing now. Check with your financial advisor or mortgage broker in Etobicoke about how you can take advantage of the bargains you can capitalize on today.
At Easy House Loan we love to help and educate our value clients located in Etobicoke, Mississauga, Oakville and all around the GTA. We have the right mortgage solutions for you and your family.