11/04/2023
Taking a peek back on the GTA October housing market, the main takeaway is sales volume is down but prices remain steady even in the face of challenging economic conditions.
Over the past few months, there has been an uptick in home values. While prices have not increased as much as they did earlier in 2023 and remain lower than the peak of March 2022, the resilience of the GTA market offers confidence to both prospective homebuyers and investors.
One of the primary hurdles for potential homebuyers continues to be the lack of housing supply… but, there is some relief on the horizon as inventory levels have shown improvement. With more properties available on the market and a moderating demand due to high borrowing costs resulting in slower sales, the housing market is transitioning to a more balanced state.
While more inventory for buyers to choose from is a relief for homebuyers, some have questioned whether more homes available for sale are a sign of distressed homeowners, unable to meet their mortgage commitments. Research from Royal LePage suggests that while higher interest rates are stressful for Canadians, the number of people who are missing mortgage payments remains at historical lows. In fact, only 15 out of every 10,000 mortgages in Canada are in arrears for more than ninety days.
With more inventory available than in previous years, this fall and winter may be an excellent opportunity for prepared and qualified buyers to make their move. Economic data indicates that the Canadian economy is contracting and that inflation, while still higher than the Bank of Canada's target, has also slowed in recent months. These factors reduce the likelihood that the Bank of Canada will raise rates again in the coming months, and we may even see an interest rate decrease in 2024. A stable or slightly lower interest rate environment will compel buyers to move off the sidelines, driving up competition for homes once again. We may look back on the next six months as having been the best opportunity for homebuyers looking for more choice with less competition to have entered or moved up in the market!!
