11/07/2022
🔹What’s Actually Happening?!🔹
There are no 2️⃣ ways about it: the real estate market has changed. But that’s not necessarily a bad thing! A lot of stress about it can be resolved with clarity in understanding what exactly is going on:
PRICES: As we have seen in the few months, prices are trending ⬇️- now at almost 6%🔻since last year. The heaviest hit are detached homes - with a double-digit drop of 11%. Higher-density home types (this means condos & townhomes) are the least affected - & in fact, the condo market is still showing a very minor price📈 (more on that 👇).
Here’s some reprieve: the drop seems to be levelling - compared to the month prior at least - there was no further drop in detached home prices, condo prices had a 2% drop & semis & townhomes actually jumped ⬆️.
Prices are affected by 2️⃣ things:
INVENTORY: it's a major issue in the GTA - & aside from this, there is a huge drop in the # of new listings. Looking at October, we have not seen this 🔽 in new listings since 2010. Those condos & semis we mentioned have the least new listings, which is why we are seeing consistency in pricing. This short inventory across the board is also why we could be seeing those price drops slowing month to month.
ACTIVITY: People are scared or uncertain. Homes sales are down 49.1% year over year - but showing almost the same activity in Oct as it did in Sept Listings are now taking 83% more time to sell. Borrowing costs are ⬆️ There is economic uncertainty, & we are entering the winter market. Many are turning to rentals as a solution.
🔹Why should I care?🔹
There should be no reason to fear the market. If you are looking to buy & sell, right now it comes to understanding exactly what is happening, what to expect & how to approach it - an understanding that should be driven by expert advice & facts.
One important thing to keep in mind: these stats are from October so they will not reflect that last rate change & the results of this. Experts are predicting these rate changes should moderate the market for next year, but market conditions (inventory, immigration, etc) will keep real estate active.
