The start of the third quarter of this year shows the Greater Toronto Area housing market much like the previous months of 2023. Looking at last year, this year’s selling prices are higher. Both benchmark and average selling prices increased by 1.4% and 3.5%, respectively. These prices are above what was expected based on the cyclic nature of real estate. In other words, we expect sales to decline at least somewhat because we are moving into winter, when sales traditionally drop. The October 2023 average selling price reflects competition among buyers despite higher borrowing costs.
However, that same view shows that sales trended downward by nearly 6%. Similarly, sales were down last month compared to September 2023.
Still, new listings are up. October 2022 had us at a 12-year low on listings, but we are now creeping up a bit, looking over the last 10 years. The October listings were lower than September of this year, but that was no surprise.
Navigating the Complex Real Estate Landscape in the GTA
Demand for housing continues to rise in the GTA. The population is increasing, and the business economy is keeping both individuals and families in the area. However, the uncertain economic status has affected the housing market. Not all potential buyers can afford the prices sellers are asking. Interest rates and conditions continue to be tight, which restricts the purchasers from plunging into the market. Equally at risk are those current owners who are nearing the end of their mortgage term. They will find it a struggle to renegotiate current rates, plus the qualifications for a new mortgage are so stiff that they fear rejection.
When mortgage rates start to drop, we expect to see many of these people who have been watching and waiting make their move into home ownership. Since so many people have been biding their time, when the interest rates start lowering, it is expected that the influx of qualified buyers will dramatically increase. In the meantime, housing continues to be an issue. That is why the rental market is so strong at this point.
Realtors and those in adjacent professions are disappointed that relief is still not imminent. These groups are looking to the Office of the Superintendent of Financial Institutions for assistance, especially those seeking to renew a mortgage with another lender.
Strategies for Success in the Current Real Estate Market
What does all of this add up to? Well, if you find a good piece of property and can qualify for a mortgage, the best bet is to quickly convert it to a rental. With the high demand, you should be able to cover your costs and make a little extra to boot. If you have a mortgage that is up for renewal in the near future, you should start shopping now. That includes reviewing your credit scores and making as many adjustments as possible to secure refinancing.
These are the reasons that more and more people are turning to easyhouseloan.ca. This is a company that maintains strong ties to the financial community with a wide variety of lenders. Their professional personnel are also able to help you resolve credit concerns and provide expert advice about the decisions you are facing.