September marks the end of the third quarter and the time of year when the housing market traditionally slows. At this point, everyone is looking at both the short and medium term views for the coming months. Long term is not on the radar at this point, considering the high inflation that results in high interest slowed economic progress, but still a need for housing. There are certainly enough listings, and we find that those statistics increased last month, and the average selling price has risen.
Sales recorded in realtors’ systems show a decline of just over 7% compared to the same time last year. This seems prevalent in the semi-detached townhouses and full townhouses. Looking at month over month, the same trend continued. However, comparing September of the two years, 2023 new listings were greatly increased, but remember that last year the new listings were extremely low.
Prices were up 2.4% from 2022 to 2023, even with the seasonal adjustment. Reviewing the numbers from the summer, however, it looks like buyers were benefiting from negotiations, and the overall prices seem more balanced. If this continues, first-time buyers will be more likely to proceed despite the higher interest rates.
Analyzing the Sales-to-New Listing Ratio for Strategic Property Decision-Making
Confirming this theory is looking at the ratio of sales to new listing. This September, that number is 28.6%. To put it in perspective, if this ratio is below 40%, buyers have the advantage. Anything above 60% indicates a sellers’ market. Clearly, if you are on the prowl for good property, you should consider acting sooner rather than later.
Traditionally, half the buyers in the Toronto area will be first-timers. The average price of a condo apartment is $700,000 or more. However, the first-time buyer exemption on land transfer tax has been steady at $400,000. There is a movement to improve this allowance in conjunction with a joint effort to help with the housing crisis in the area.
The experts feel that the cost of borrowing money will continue to be high until mid-way through next year. At that point, they are expecting a decline in the interest rate. This will incentivize potential buyers to take the plunge and become homeowners. That should result in an increase in demand and close with sales. This can only benefit the increasing population in the Greater Toronto Area and elsewhere.
Expert Guidance for Informed Decisions
All in all, this is a lot of information to process and keep track of. That is why it is a good idea to turn to the experts. Check-in with easyhouseloan.ca where you can have a conversation with someone who deals with these details and statistics daily. Financial investment is a serious business, and the professionals at easyhouseloan.ca are concerned with the success of their clients. They keep track of trends and funding and have developed a wide range of investor possibilities to help spur the real estate market to the point where it is good for everyone.