With the Bank of Canada announcing that bank rates will stay low for now, how will that affect the Toronto real estate market?
It’s a treat for those who are maintaining smart debt levels and who can afford to get into or move around in the housing market. But it can be a trick for buyers who rationalize affordability based on the low rates.
For as many media outlets there are conflicting opinions on the Toronto real estate market. It’s cool, it’s hot and that depends on the day.
As I have stated in the past, it all depends on what and where you are looking. Generally speaking, October has been a good month. Most markets across Canada saw growth and and average national price increase of 8.8%.
You can check out everyone’s angle in the collection of press below and the Toronto Real Estate Board mid-month market watch.
For what is happening in the Toronto East market, we are seeing great movement and price activity in the $1M and below price range – multiple offers are still more frequent than not. However in the + $1M range there is a slight surplus of inventory and buyers are taking their time – not going for the first one that checks most of their boxes.
Ironically however, we’re seeing homes that have been on the market for a few weeks that have buyers circling around and once someone pulls the trigger to put pen to paper, they find themselves in a competitive offer situation. Nothing like watching supply and demand at work.
My advice for sellers is to price your home at market value – price above and your home will sit while the others around you move along. If your home hits all the marks in the under $1M range then you may want to consider pricing aggressively but again, close to market value.
As the fall starts to move into November you will see a batch of buyers who have been circling around a couple of listings and start to decide on a home as they realize there isn’t much more inventory to come.
Consider as a seller however that as the market starts to cool off for the winter, many buyers who are not pressed to buy will just wait to see what the spring serves up.
Anyone coming to the table may be trying an lower-ball offer if your home has been on the market for a while but a decent offer will usually be from someone who has to buy so I advise to work with it no matter where it starts.
October 16, 2013 — Greater Toronto Area REALTORS® reported 3,460 sales through the TorontoMLS system during the first 14 days of October 2013. This result was up by 21 per cent in comparison to 2,849 sales reported during the same period in 2012. October mid-month sales were also up by 13 per cent compared to the 10-year average.
“With October mid-month sales well-above the 10-year average, it seems clear that we have more than recovered from the temporary dip in residential transactions that resulted from the onset of stricter mortgage lending guidelines,” said Toronto Real Estate Board President Dianne Usher.
“It is also important to note that the supply of ground-oriented listings remains constrained, due in part to the additional land transfer tax and stricter lending guidelines. If this were not the case, the number of sales could have been greater because more households would have been able find a home to purchase,” continued Ms. Usher.
Falling rates, BoC’s stand puts housing spotlight on Flaherty
Toronto housing market shows no signs of slowing down as early October sales spike
Canadian Home Prices Surge 8.8 Per Cent, Led By Toronto, Vancouver, CREA Says
And check out the market highlights in the news this month: