It is always nice to see success, especially if you are expecting otherwise.
For example, the real estate market in the Greater Toronto Area (GTA) looked great during July. Home sales, new listings, and prices were all higher than in June.
During that previous month, there were a fair number of new listings, but sales lagged. With the continued increasing inflation and the Bank of Canada raising the interest rate, fewer potential buyers even tried to secure loans or pre-approvals. However, it appears that sellers have more faith in the system since the number of new listings grew.
Market Equilibrium Emerges
Now in July 2023, as compared to a year previous, the market seems to have balanced out. Sales rose over last year’s levels which may indicate that buyers have adjusted their thinking regarding the higher interest rates on home mortgages. It is also possible that these folks believe that the interest rates will rise even further as the year goes on, and they want to secure good properties at the best rate, given the circumstances.
The numbers are impressive. There was a 7.8% increase in sales, new listings were up by 11.5%, the MLS Home Price Index Composite rose by 1.3%, and the average selling price was 4.2% higher. When you adjust the sales for seasonality, they were still lower for the second month, but the fact that they are trending upward is a great encouragement.
Delving Deeper into Economic Factors Impacting GTA’s Housing Market
Not everything is rosy. There are still serious concerns about the cost of borrowing, employment opportunities, and general economic impacts. These areas will continue to affect the types and numbers of home sales in GTA. Despite population growth, many individuals and families are skittish about plunging into home ownership at this stage of the game.
There is also concern about public policy as it relates to housing. There is anticipation of greater numbers of immigrants but no apparent move to provide reasonable accommodations upon their arrival. To provide relief from the economic distress, the overall workforce will need to grow, and the influx of families is a good way to accomplish this. However, if there is insufficient housing in rental properties as well as those available for purchase, we will be facing another crisis.
Seizing Opportunities in a Dynamic Market
In the meantime, whether you are new to this country or are long-established residents, you can take advantage of the properties on the market at this point as well as those that will soon be listed. If you are a first-time home buyer or it has been a while since you relocated, check with easyhouseloan.ca. They are adept at explaining the entire process and walking you through the forms necessary for pre-approvals. With access to a wide range of lenders, they will also be able to find you the most favourable opportunities that fit within your range.
As you can tell from the positive aspects of the housing market that we have seen over the past month, it is a perfect time to explore the availability of houses and the funding that will satisfy your needs. Ready to explore your home-buying options in the GTA? Connect with EasyHouseLoan.ca Today!