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Stouffville Real Estate Centre, 6311 Main Street, Stouffville, ON (2026)

02/23/2023

Blog Thursday: The latest predictions for the real estate market are out and you won’t believe what people are saying. Check out our latest blog post below to learn more and reach out to us now via direct message if you would like a copy of the report and a FREE, NO OBLIGATION consultation about your moving plans and how we can help you reach your goals.

A Year of Two Halves - Toronto Regional Real Estate Board 2023 Market Outlook and 2022 Year in Review

The Toronto Regional Real Estate Board (TRREB) has released their always anticipated market outlook, and year in review, report. This report is packed with helpful information for people who are looking to buy or sell. It provides great context and data to explain trends and their impact for the year ahead.

The 2023 outlook is really a story of two halves. The first half of the year has been a flatlining in terms of the number of sales and selling price. Current data suggests that the GTA has reached a bottom to the current market situation and that the second half of the year will bring tighter market conditions and pressure for prices to rise again.

Jason Mercer, TRREB’s Chief Market Analyst, predicts that once would-be homebuyers recognize that the market is likely to shift to more favourable conditions,

“... you'll start to see more of them moving back into the marketplace in the second half of the year. And on top of this, they're going to be able to take advantage of what looks to be lower borrowing costs, at least in medium-term rates, like the five-year fixed rate as we move through the second half of the year”.

When you add market conditions, with the borrow medium-term rates and record numbers of population growth - you will see the market conditions tightening which will start to exert upward pressure on selling prices in the second half of 2023.

Borrowing Costs

A steep increase in borrowing costs was certainly a major factor impacting the market in 2022. The report outlines that we're not expecting the same type of impact in 2023. The expectation is that interest rates will remain where they are.

Again, according to Jason Mercer, Chief Market Analyst at TRREB, interest rates may “… even trend lower, especially in the second half of the year. And obviously this would be helpful from an affordability perspective, especially for those homebuyers who are sitting on the sidelines right now. They want to make a purchase, but higher borrowing costs have impacted affordability. And so a lot of these buyers may choose to enter into a purchase, but it may be a different home type or in a different part of the GTA or even broader Greater Golden Horseshoe compared to what they had originally planned."

What Buyers and Sellers are Saying

The report also provided some very helpful polling data by Ipsos.

First-Time Buyers

46% of first-time buyers said they would likely buy a home. This number is up by 7 per cent from 2021.

A relatively resilient labour market and downward trending fixed mortgage rates will prompt a gradual increase in homebuying activity. This means more first-time buyers will be confident to make a purchase.

Buyers

63% of likely purchasers said they were impacted by the mortgage stress test.

The polling results also showed that the Office of the Superintendent of Financial Institutions (OSFI) stress test is having more impact on homebuying intentions than ever before – the highest since 2019.

Most respondents who said they were impacted indicated that the stress test was making them consider purchasing a different type of home, location, and/or price point.

Listing/Sellers Intentions

39% of homeowners said they would consider listing their home in 2023, up by 4% since 2022.

While inventory levels are expected to remain low historically, recent Ipsos polling suggests that the share of homeowners considering listing their home for sale may increase in 2023. More importantly, this increase in listing intentions is entirely driven by those who say they are very likely to list.

Bottom Line:

The outlook report reminds us that people are always buying and selling and that market conditions are trending towards being more favourable in the second half of 2023. If you are thinking about making a move, message us now to explore what timing is in your best interest to meet your goals.

02/09/2023

Blog Thursday: Mortgage rates alone are not reason enough to put off selling. Check out our latest blog below to find out more on why now can be a very good time to sell.

The Top Reasons for Selling Your House

Many of today’s homeowners bought or refinanced their homes during the pandemic when mortgage rates were at history-making lows. Since rates doubled in 2022, some of those homeowners put their plans to move on hold, not wanting to lose the low mortgage rate they have on their current house. And while today’s rates have started coming down from last year’s peak, they’re still higher than they were a couple of years ago.

About 50 per cent of variable-rate, fixed-payment mortgages and nearly 13 percent of the entire Canadian mortgage pool have already hit their “trigger rates,” or the point where monthly mortgage payments are only covering interest and not making headway on the principal.
That means a strong majority of homeowners with mortgages have a rate below what they’d get if they moved right now. But if you’re a homeowner in that position, remember that mortgage rates aren’t the only thing to consider when making a move. Your mortgage rate is important, but there are plenty of reasons you may still need or want to move.

"People really don't want to list their homes when sales and prices are falling, for obvious reasons, and so far, that factor is sort of winning out and keeping supply relatively subdued," said Rishi Sondhi, TD Economics.

Sondhi goes on to say that forecast prices in Ontario will decline through early 2023 but bottom out in the second half of the year.

So, if you’re on the fence about selling your house, consider the other reasons homeowners are choosing to make a move. A recent report from the National Association of Realtors (NAR) reports the top reasons homeowners have decided to sell over the past year.

The most commonly cited reasons for selling were the desire to move closer to loved ones, followed by moving due to retirement, and their neighborhood becoming less desirable. Additionally, the need for more space factored in, as did a change in household structure.

If you also find yourself wanting a change in location or needing space your current house just can’t provide, it may be time to sell.

What you want and need in a home can be reason enough to move. To find out what’s right for you, work with a trusted real estate professional who will offer advice and expert guidance throughout the process. They’ll be able to lay out all your options – giving you what you need to make a confident decision.

Bottom Line

When deciding whether or not to move, you have a lot to consider. There are plenty of non-financial reasons to factor in. Let’s connect today to weigh the benefits of selling your house.

01/27/2023

Blog Thursday: It’s becoming clear to sellers that the market has indeed changed. The average number of days on market has nearly doubled since last from 14 to 27 days in the greater Toronto area. Check out our blog below for some helpful context to consider if you are selling today.

Want To Sell Your House? Price It Right.

Last year, the housing market slowed down in response to higher mortgage rates, and that had an impact on home prices. If you’re thinking of selling your house soon, that means you’ll want to adjust your expectations accordingly. As realtor.com explains:

“. . . some of the more prominent pandemic trends have changed, so sellers might wish to adjust accordingly to get the best deal possible.”

In a more moderate market, how you price your house will make a big difference to not only your bottom line, but to how quickly your house could sell. And the reality is, homes priced right are still selling in today’s market.

Why Pricing Your House Appropriately Matters
Especially today, your asking price sends a message to potential buyers.

If it’s priced too low, you may leave money on the table or discourage buyers who may see a lower-than-expected price tag and wonder if that means something is wrong with the home.

If it’s priced too high, you run the risk of deterring buyers. When that happens, you may have to lower the price to try to reignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag by some buyers who will wonder what that means about the home.

To avoid either headache, price it right from the start. A real estate professional knows how to determine that ideal asking price. They balance the value of homes in your neighborhood, current market trends, buyer demand, the condition of your house, and more to find the right price. This helps lead to stronger offers and a greater likelihood your house will sell quickly.

Bottom Line

Homes that are priced at current market value are still selling. To make sure you price your house appropriately, maximize your sales potential, and minimize your hassle, let’s connect.

01/16/2023

Motivational Monday: According to the dictionary, courage is defined as the ability to do something that frightens one; to have strength in the face of pain. With that in mind, we are loving this quote from the great Canadian musician The Weeknd. We cannot reach higher heights without a fall every now and again. Have a great week out there.

01/13/2023

Blog Thursday: The pandemic made second homes popular - now the return to work is having some asking if it is time to sell. Check out our latest blog below for more details and don’t hesitate to message us if you are thinking of selling or buying a second home.

During the pandemic, second homes became popular because of the rise in work-from-home flexibility. That’s because owning a second home, especially in the luxury market, allowed those homeowners to spend more time in their favorite places or with different home features. Keep in mind, a luxury home isn’t only defined by price. In a recent article, Investopedia shares additional factors that push a home into this category: location, such as a home on the water or in a desirable city, and features, the things that make the home itself feel luxurious.
A recent report from the Institute for Luxury Home Marketing (ILHM) explains just how much remote work impacted the demand for second and luxury homes:

“The unprecedented ten-fold increase towards remote work since the pandemic is an historic development that will continue to fuel second home demand for many years to come.”
But what if you bought a second home that you no longer use? If you’re now shifting back into the office or are seeing your priorities and needs change, you may find you’re not utilizing your second home as much. If so, it may be time to sell it.

And if you own what’s considered a luxury home, buyer demand for it may be even greater. In another report, the Institute for Luxury Home Marketing explains:

“. . . the last few years have left their legacy for the luxury market. While it might only represent a small percentage of the overall real estate market, luxury homeownership’s influence is growing. Not only has the purchase of homes valued over $1 million (a figure considered by the National Association of Realtors to be a benchmark for luxury) tripled from 2.6% to 6.5% since 2018, but demand for multiple luxury properties has soared over the last two years.
This phenomenal increase has been driven by a growing affluent demographic who consider owning a luxury property a necessity in their asset portfolio. All indications are that this trend is here to stay, albeit that demand is set to return to a more sustainable level.”

If you own a luxury second home that isn’t being used as much anymore, now’s the time to sell. There are still buyers in the market who are looking for a home like yours today.

Bottom Line
Let’s connect to explore the benefits of selling your second home this year.

12/08/2022

Blog Thursday: In spite of the interest rate increase yesterday, there are still solid reasons why potential home buyers should consider buying today. Read our blog below for 5 big reasons to buy today.

Key Advantages of Buying a Home Today
There’s no doubt buying a home today is different than it was over the past couple of years, and the shift in the market has led to advantages for buyers today. Right now, there are specific reasons that make this housing market attractive for those who’ve thought about buying but have sidelined their search due to rising mortgage rates. Yes, that’s right, even in light of yesterday's interest rate increase.

1. Today’s High Interest Rates are Actually Historically Very Low

In Canada, in 1981, the variable mortgage rate was 19.20%. In 1984, 11.7%. In 1990, it was 13.95%.
Many people, even first-time home buyers, bought homes when mortgage rates were more than four times as high as they are today. Historic data shows that today’s “high” interest rates are relatively very low over the last 30 years. Peaks and valleys of housing prices and mortgage rates are part of the housing market cycle.

2. Fewer homes on the market means less competition
There are always people who are making a move - even when market conditions are changing. If you are looking to buy right now, you will face less competition from other buyers. Multiple offers are few and far between as are sale prices over asking. And if you are looking to sell, you will have fewer homes in competition with yours.

3. Growth in the Rest of Canada and the US shows likely market trend of more average rates of buying and selling

According to the Canadian Real Estate Association, the number of newly listed homes was up 2.2% on a month-over-month basis in October, with gains in the Greater Toronto Area (GTA) and the B.C. Lower Mainland offsetting declines in Montreal and Halifax-Dartmouth.
In the United States, according to data from the National Association of Realtors (NAR), this year, the supply of homes for sale has grown significantly compared to where it started the year.

The good news for you is that even slight growth in the number of homes for sale means that you have more homes to choose from.
4. Home Prices Are Not Projected To Crash
Experts don’t believe home prices will crash like they did in 2008. Instead, home prices will moderate at various levels depending on the local market and the factors, like supply and demand, at play in that area. That’s why some experts are calling for slight appreciation and others are calling for slight depreciation.

While prices continue to decline throughout the GTA, Toronto Regional Real Estate Board CEO John DiMichele emphasizes the effect will be temporary.

5. Mortgage Rates Have Risen, but They Will Come Down

While mortgage rates have risen dramatically this year, the rapid increases we’ve seen have moderated in recent weeks as early signs hint that inflation may be easing slightly. Where they’ll go from here largely depends on what happens next with inflation. If inflation does truly begin to cool, mortgage rates may come down as a result.

In its short to medium-term Canadian interest rate predictions, TD Economics projected the Bank of Canada to increase rates in the fourth quarter and maintain the level until the end of 2023. TD Economics predicted the Canadian central bank to lower the policy rate to 2.90% in 2024, 2.05% in 2025, 2% in 2026 and 2% in 2027.

Scotiabank expects the Bank of Canada to raise its overnight rate to 3.5% in the fourth quarter of 2022 and maintain the rate throughout 2023.
When a decrease happens, expect more buyers to jump back into the market. For you, that means you’ll once again face more competition. Buying your house now before more buyers reenter the market could help you get one step ahead.

When mortgage rates come down, those waiting on the sidelines will jump back in. Your advantage is getting in before they do.

Bottom Line

If you’re thinking about buying a home, you should seriously consider the advantages today’s market offers. Let’s connect so you can make the dream of homeownership a reality.

11/22/2022

Motivational Monday: There is knowing and there is imagining, and they are two different skills. Never lose your ability to imagine the future - it's what keeps us moving forward towards our goals.

11/14/2022

Motivational Monday: This quote says it all. Always look for the opposite of your first impression. Both can be true – so be aware that you are making the choice. Go on out there and make what seems impossible….possible!

10/31/2022

Motivational Monday: Focus on what you want, celebrate every chance you get and rest often. These are lessons learned over time that help us to spread a little more magic every day! Hope you enjoy the fun of the Halloween celebration even it is just a little chocolate treat for yourself!

10/28/2022

Blog Thursday: Given yesterday’s Bank of Canada 0.5% interest rate increase and with the shifts in the housing market, you might be thinking this is a housing bubble. Read our latest blog post to find out 3 reasons why today’s housing market isn’t like 2008 or 2017.

3 Reasons Why Today’s Housing Market Isn’t Like 2008 or 2017

Given yesterday’s Bank of Canada 0.5% interest rate increase and with all the headlines and talk in the media about the shifts in the housing market, you might be thinking this is a housing bubble. It’s only natural for those thoughts to creep in that make you think it could be a repeat of what took place in the recent past. But the good news is, there’s concrete data to show why this is nothing like the last time.

There’s Still a Shortage of Homes on the Market Today, Not a Surplus

For historical context, there were too many homes for sale during the last market corrections (bubbles) in 2008 and in 2017 that caused prices to fall. In 2017 alone, the Toronto real estate market started the year with home prices up 34% in March over the previous year, then saw prices fall 18% in just four months when the bubble burst. Today, supply has increased since the start of this year, but there’s still a shortage of inventory available overall, primarily due to almost 15 years of underbuilding homes.
The Canadian Real Estate Association (CREA) reports that unsold inventory sits at just a 3.7-months’ supply at the current sales pace, which is significantly lower than the last time. There just isn’t enough inventory on the market for home prices to come crashing down like they did last time, even though some overheated markets may experience slight declines.

Mortgage Standards Were More Relaxed Back Then

During the lead-up to the housing bubbles, it was easier to get a home loan than it is today. Running up to 2006, banks were making it easier for people to qualify for a home loan or refinance their current home.

Back then, lending institutions took on greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices. Today, things are different, and purchasers face higher standards from mortgage companies. In Canada, this is due in part to the stress test launched by the Federal Government in 2017 to cool down the overheated market at the time. The stress test is the minimum threshold that anyone applying for a home loan in Canada has to meet. It does not make the home anymore expensive, rather it works to ensure that those who qualify for a mortgage will be able to pay it off as rates go up.

Mortgage Delinquency Volume Is Nothing Like It Was During the Crash

Another difference is the number of homeowners that were facing mortgage delinquency after the housing bubble burst. According to Canadian Real Estate Wealth, mortgage delinquency does not immediately mean you will lose your home. Most lenders will offer repayment plans to make up for missed payments. Over time, if your lender chooses, they may take legal action after a missed payment, especially after multiple missed payments. Lenders may go so far as to exercise power-of-sale or foreclosure and sell your home, forcing you to move. You will also be on the hook for paying legal fees and any fees as a result of defaulting on your lease agreement.

According to the Canadian Mortgage and Housing Corporation, delinquency activity has been lower since the crash, largely because buyers today are more qualified and less likely to default on their loans.

It is also important to note that homeowners today have options they just didn’t have previously due to the unprecedented growth in home equity. That equity comes, in large part, from the way home prices have appreciated over time.

This goes to show homeowners are in a completely different position this time. For those facing challenges today, many have the option to use their equity to sell their house and avoid the foreclosure process.

Bottom Line

If you’re concerned, we’re making the same mistakes that led to the housing crash, the graphs above should help alleviate your fears. Concrete data and expert insights clearly show why this is nothing like the last time.

10/24/2022

Motivational Monday: Learning from those who have achieved success in any area of their life is motivating for us. We love this quote from Ed Mylett to start of the week right! Have a great week!

10/20/2022

Blog Thursday: How is it all going to end? At the Walterhouse Realty Group, we are working with buyers and sellers who see that the changing market is not going to change again overnight. These clients have made a decision and they are moving ahead with their dreams. See what experts are predicting (hint: All's well that ends well)! Read more below.

What’s Ahead for Home Prices?

As the housing market cools in response to the dramatic rise in mortgage rates, home price appreciation is cooling as well. And if you’re following along with headlines in the media, you’re probably seeing a wide range of opinions calling for everything from falling home prices to ongoing appreciation. But what’s true? What’s most likely to happen moving forward?

While opinions differ, the most likely outcome is we’ll fall somewhere in the middle of slight appreciation and slight depreciation. Here’s a look at the latest expert projections so you have the best information possible today.

What the Experts Are Saying About Future Home Prices

Royal LePage has forecasted that home prices will drop by 3.5 per cent in the fourth quarter of 2022. This forecast is a readjustment from a prior forecast in its July 2022 report which showed home prices increasing by at least three per cent.

Mortgage Sandbox believes politicians are hoping to guide the market toward a typical annual real estate cycle with price growth in the range of 1 to 3% annually – in line with income growth.

The Canada Mortgage and Housing Corporation has predicted continued price growth through to 2023, though at slower rates than seen recently.

Re/Max Canada president Christopher Alexander said many markets are experiencing softer sales given the recent interest rate hikes.
"This provides some reprieve from the unprecedented demand and unsustainable price increases we've seen across Canada through 2021 and in early 2022. However, the current lull in the market is only temporary. Until housing supply increases, these 'boom' and 'bust' cycles will likely be a recurring event."

Desjardins has concluded that Canadian home prices set to drop by almost 25% by end of 2023. However, the silver lining in their prediction is that prices are still expected to be above the pre-pandemic level at the end of 2023.

While there isn’t a clear consensus, if you take the average, the most likely outcome is, nationally, home price appreciation will be fairly flat next year.

What Does This Mean?
Basically, experts are divided on what’s ahead for 2023. Home prices will likely depreciate slightly in some markets and will continue to gain ground in others. It all depends on the conditions in your local market, like how overheated that market was in recent years, current inventory levels, buyer demand, and more.

The good news is home prices are expected to return to more normal levels of appreciation rather quickly. The latest forecast from Wells Fargo in the United States shows that, while they feel prices will fall in 2023, they think prices will recover and be net positive in 2024. That forecast calls for 3.1% appreciation in 2024, which is a number much more in line with the long-term average of 4% annual appreciation. While the Canadian market is unique in many ways, often the overall trends are similar between the two countries.

As Jason Lewris, Co-Founder and Chief Data Officer for Parcl - a blockchain-based real estate platform that allows users to invest in a digital square foot of physical real estate in the most lucrative markets, says -

“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”

Don’t let fear or uncertainty change your plans. If you’re unsure about where prices are headed or how to make sense of what’s going on in today’s housing market, reach out to a local real estate professional for the guidance you need each step of the way.

Bottom Line

The housing market is shifting, and it’s a confusing place right now. Let’s connect so you have a trusted real estate professional to help you make confident and informed decisions about what’s happening in our market.

Stouffville Real Estate Centre

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