Well it is November already and all this mild weather has me fooled into forgetting that the holidays are just around the corner. Until we get that first snowfall I will remain in apple pie mode.
As everyone prepares for the holiday season, they typically put buying or selling their home on hold. Home decorating and illumination takes centre stage and we make our homes look their best. If only they looked this way all year round!
The real estate market has gone quiet. We normally see a slow down as the holidays approach. This year the slow down came early, precipitated by the economy, a recession and rising interest rates. Buyers are having a harder time qualifying for a mortgage, and those that qualify, do so for lower amounts. The next interest rate announcement will be on December 7, 2022. Every time the Bank of Canada raises the overnight rate the housing market takes a hit and a buyer’s budget shrinks because the stress test amount increases.
In Durham Region the market is currently in a balanced state. There are 1033 freehold listings available in Durham Region right now and of these 24 listings are under $500,000. The number of sales transactions is down 40% year over year. Average days on market according to the stats is now 33 days for the entire GTA but only 16 days in Durham Region. These stats do not take into account houses that have listed more than once. The average selling price for October is down 5.7% overall from October 2021 in the GTA and the number of sales is down 49% year over year.
The lower price points are still seeing competition as first time home buyers and investors and downsizers all compete for the same houses. As affordability drops Buyers move to the lower price points.
The condo market has fared better than the freehold market. Average selling price of a condo in the GTA is up 4.5% over the same quarter last year and total number of sales of condos is down 46%. Average days on market for a condo in the GTA is 25 days.
The rental market in the GTA has tightened. There are 25% fewer rental listings available and the average rental price of a 1 bedroom condo is now $2481/month up from $2061 from the same time last year.
If you are thinking of selling, I would suggest you do it sooner rather than later. If it is ready to go – great, don’t hesitate. If it isn’t ready to go then use the time from now until the new year to prepare your house for sale and have it ready to launch in January. Buyers who can afford to buy are looking for houses that they can afford and they prefer clean, freshly painted and “shiny”; Quartz counters, new flooring, on trend lighting. Top items buyers are looking for are Storage, Parking, Location, Neutral colours, Covered patio porch or deck, Great Outdoor space, Energy efficient updates, Kitchen updates, and a rec room/game room.
TRREB just released its market report for October stating
The monthly trends for both the MLS® HPI Composite and the average selling price have flattened in recent months following steeper declines in the spring and early summer. “Home prices in the GTA have found support in recent months because price declines in the spring and summer mitigated the impact of higher borrowing costs on average monthly mortgage payments. The Bank of Canada’s most recent messaging suggests that they are reaching the end of their tightening cycle. Bond yields dipped as a result, suggesting that fixed mortgage rates may trend lower moving forward, which would help affordability,” said TRREB Chief Market Analyst Jason Mercer.
Remembrance Day is this Friday November 11th. You can visit your local Cenotaph or observe 2 minutes of silence at 11:00 am where you are. I am reminded as I watch world events how very fortunate we are to live in Canada.
Thank you to our Veterans and those who served.
Have a great November!