The middle of the third quarter shows that listings are up from what we saw a year ago. However, sales were down. Although there seems to be a good choice of properties on the market, selling prices remain the same compared to what we recorded only a year ago.
Here are some of the numbers related to this situation. Sales declined by 6% from one year to the next, while the new listings climbed by 16.5%. Compared to October 2023, sales were slightly higher, but new listings fell 5.5%. The selling price was down 2.2% from October.
Promising Signs Ahead
However, things may be looking up. Bond yields are an indicator because they are a key factor in financing and underwriting fixed-rate mortgages. These bond yields have been gradually moving downward, which leads the experts to predict that the Bank of Canada will reduce interest rates sometime after the turn of the year, probably during the first half.
If it happens, this will free up significant money to allow potential homeowners to secure better mortgage terms. It will also benefit those who are selling or contemplating putting their houses on the market next year by allowing more couples and individuals to qualify for financing.
When mortgage rates begin to reduce, the demand for loans will increase. Considering a continuing increase in population, this will stimulate the housing market, and demand and supply of available properties will come into better alignment. As the trend progresses, values will increase.
Push for Change
The real estate industry continues to petition the Bank of Canada and the Office of Superintendent of Financial Institutions (OSFI) to allow uninsured mortgages to switch lenders without a stress test, much like the recent policy decisions rendered to aid insured mortgage holders to find better rates and terms. These actions will benefit anyone seeking housing, either through ownership or rental properties.
Improvements in the real estate industry are one of the indicators that experts review when watching and predicting the overall economic conditions in our country. A more stable economy will provide relief for everyone at the grocery store, department store, and even luxury items.
While we are all eagerly anticipating this occurrence, we don’t have an exact timetable. That means if you spot a good deal, especially in real estate, you should not let it slip away. There are many financing options still readily available. If correctly structured, as interest rates return to normal, you can investigate opportunities to renegotiate terms or refinance through another lender.
Expert Guidance for Your Home Loan Journey
The best way to find all of the answers is to deal with a professional. When you contact easyhouseloan.ca you are assured of dealing with individuals who are skilled in all of the details necessary to secure a loan. They have access to a wide range of financial arrangements and are happy to help you work through the details to help you purchase the house you want.