Erum  Shah

Erum Shah

REALTOR® Broker

HomeLife Hearts Realty Inc., Brokerage *

Mobile:
647-707-4127
Email Me

Market Updates

 

December 2023 Market Updates

 

Challenges in the 2023 Housing Market

High borrowing costs and stringent federal mortgage standards made home ownership unattainable for many households in 2023, resulting in a 12.1% decline in home sales.

 

Hope on the Horizon for 2024

New Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce anticipates relief in 2024 as borrowing costs are expected to decrease. Coupled with a resilient economy, this shift should lead to a rebound in home sales.

 

Market Dynamics and Home Sales Trends

Despite an uptick during the spring and summer, 2023 witnessed a decline in home sales, totaling 65,982 through TRREB’s MLS® System. The number of new listings also decreased, posing challenges against a backdrop of a steadily growing population.

 

Pricing Fluctuations in 2023

The average selling price for all home types in 2023 was $1,126,604, reflecting a 5.4% decrease from 2022. However, on a seasonally adjusted monthly basis, the average selling price showed a slight increase.

 

Impact on Buyers and Negotiation Opportunities

Active buyers in 2023 benefited from increased choices, allowing them to negotiate lower selling prices. While borrowing costs played a role, the trend is expected to reverse in 2024, prompting renewed price growth with lower costs.

 

Looking Ahead - Market Conditions in 2024

With lower borrowing costs anticipated for 2024, the real estate market may witness tighter conditions, potentially leading to renewed growth in housing prices in the upcoming months.

Quoted Statement by Jennifer Pearce:

“High borrowing costs coupled with unrealistic federal mortgage qualification standards resulted in an unaffordable home ownership market for many households in 2023. With that said, relief seems to be on the horizon. Borrowing costs are expected to trend lower in 2024. Lower mortgage rates coupled with a relatively resilient economy should see a rebound in home sales this year,” said new Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce.​

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

All Previous Market Updates are Below:

 

 

Market Overview November 2023

 

1. Challenges Persist in Greater Toronto Area (GTA) Housing Market, but Positive Signs Emerge:

In November 2023, Greater Toronto Area (GTA) home sales faced ongoing challenges due to high borrowing costs and uncertain economic conditions. Year-over-year, sales experienced a decline, while listings saw an increase from the previous year's low supply levels. Despite a more extensive selection in the market, selling prices remained relatively stable compared to the previous year.

 

2. Affordability Struggles Eased by Potential Relief in Interest Rates:

In response to the persisting challenges, Toronto Regional Real Estate Board (TRREB) President Paul Baron highlighted the toll of inflation and elevated borrowing costs on affordability, particularly in the interest rate-sensitive housing market. However, a potential ray of hope emerged as bond yields, crucial for fixed-rate mortgages, showed a downward trend. Additionally, a growing number of forecasters anticipated Bank of Canada rate cuts in the first half of 2024, potentially alleviating affordability concerns for existing homeowners and prospective buyers.

 

3. November 2023 Statistics Reflect Market Dynamics:

GTA REALTORS® reported a six percent decline in sales, totaling 4,236, compared to November 2022. Conversely, new listings increased by 16.5 percent during the same period. On a seasonally adjusted monthly basis, November sales showed a slight uptick from October 2023, while new listings decreased by 5.5 percent.

4. Pricing Trends and Future Outlook:

The MLS® Home Price Index Composite benchmark and the average selling price, standing at $1,082,179 in November 2023, remained relatively unchanged from November 2022. However, on a seasonally adjusted monthly basis, the MLS® HPI Composite benchmark saw a 1.7 percent decline, and the average selling price decreased by 2.2 percent month-over-month. TRREB Chief Market Analyst Jason Mercer pointed out that home prices adjusted from their peak in response to higher borrowing costs, providing some relief for buyers. As mortgage rates are expected to trend lower in the coming year and the population continues to grow, renewed growth in home prices is anticipated.

 

5. Policy Decisions Aimed at Improving Affordability​:

Emphasizing the long-term perspective, the TRREB acknowledges the increasing demand for homes, both rental and ownership. Recent policy decisions, such as allowing existing insured mortgage holders to switch lenders without the stress test, are viewed as positive steps to address housing affordability.

 


 

Market Overview in October 2023

1. Home Sales in the GTA

Real estate professionals in the Greater Toronto Area (GTA) reported a total of 4,646 home sales in October 2023, indicating a 5.8 percent decline compared to the figures from October 2022 as per data from TRREB's MLS® System. The month-over-month analysis also revealed a decrease in sales compared to September.

 

2. New Property Listings

The number of new property listings for October 2023 exhibited a noticeable increase from the remarkably low numbers seen in October 2022. However, this upturn was more moderate when compared to the average for October over the past ten years. Adjusted for seasonal variations, the new listings experienced a slight decline when compared to September 2023.

 

3. Price Trends

Both the October 2023 MLS® Home Price Index (HPI) Composite benchmark and the average selling price witnessed a year-over-year increase of 1.4 percent and 3.5 percent, respectively. Adjusted for seasonal fluctuations, the MLS® HPI Composite benchmark showed a slight dip from September 2023, whereas the average selling price remained relatively steady. Notably, both benchmarks continued to surpass the lowest points observed earlier in 2023.

 

4. Market Resilience and Borrowing Costs

Despite challenging market conditions, the ongoing competition among buyers played a significant role in keeping the average selling price above the level seen in the corresponding period last year, as well as above the lowest points witnessed in the first quarter of the current year. The Bank of Canada acknowledged this resilience in its October statement. However, uninsured mortgage holders have yet to see any relief as they approach the conclusion of their current term, considering the persistently high borrowing costs.

 

 

_______________________________________________________

 

 

Market Overview in September 2023

In September 2023, the Toronto Regional Real Estate Board (TRREB) observed significant shifts in the real estate market, impacting both sellers and buyers. Here is a breakdown of the key highlights:

Sales Decline and Listing Surge:

Home sales declined by 7.1% compared to September 2022, with ground-oriented properties experiencing a more substantial drop.

New listings surged, compensating for the low levels seen in 2022, potentially offering more options for prospective buyers.

 

Price Movement and Market Balance:

The MLS® Home Price Index (HPI) rose by 2.4%, signifying sustained growth in home values.

The average selling price increased by three percent year-over-year, but saw a slight dip on a monthly basis.

TRREB's Chief Market Analyst, Jason Mercer, noted a more balanced market, suggesting potential increased negotiating power for buyers in the short term.

 

Impact on Sellers and Buyers:

Sellers: The decline in sales and the increase in listings might exert pressure on sellers to reassess their pricing strategies and potentially consider more competitive offers.

Buyers: With the increase in listings and potential negotiating power, buyers might find more opportunities and leverage in their property search, potentially offsetting the impact of high borrowing costs.

 

Condo Market Dynamics:

The average price of a condo apartment in Toronto exceeded $700,000, which may impact affordability for potential buyers, especially first-time homebuyers, who constitute a significant portion of the market.

This market overview signals a dynamic landscape, with implications for both sellers and buyers, driven by changing sales patterns, price movements, and an evolving condo market in Toronto.

 

 

-------------------------------------------------------------------------------------------------------------------------------------------------

 

Mississauga Real Estate Market Update - August 2023

 

Introduction:

 

The Mississauga real estate market experienced notable shifts in August 2023, providing valuable insights for buyers and sellers alike. As we transitioned from a tighter spring market to a more balanced summer landscape, several factors influenced market conditions and property prices.

 

Market Balance and Pricing:

During the summer, we observed a transition to more balanced market conditions compared to the earlier part of the year. This balance played a crucial role in keeping selling prices relatively steady, closely mirroring last year's figures.

 

Interest Rate Impact:

The increase in interest rates that began in May had repercussions in the market. As interest rates continued to rise after a pause in the winter and early spring, many buyers found themselves needing to recalibrate their offers to meet the requirements of higher monthly mortgage payments.

 

Seller Strategies:

In response to adjusted offers from buyers, it's important to note that not all sellers chose to accept lower-than-expected selling prices. This led to a reduction in the number of completed sales, as negotiations were influenced by varying price expectations.

 

Price Trends and Benchmarks:

Looking at broader market trends, the MLS® Home Price Index (HPI) Composite benchmark for August 2023 displayed a 2.5 percent year-over-year increase. Simultaneously, the average selling price showed a slight uptick, albeit by less than one percent, reaching an average of $1,082,496 over the same year-over-year period.

 

Month-over-Month Analysis:

On a month-over-month seasonally adjusted basis, the MLS® HPI Composite benchmark remained virtually unchanged. However, the average price saw a minor decrease of 1.6 percent compared to the preceding month (July).

 

Conclusion:

The Mississauga real estate market in August 2023 reflects the evolving dynamics influenced by economic factors and buyer-seller negotiations. As we navigate through these changes, it's crucial for both buyers and sellers to stay informed and adapt their strategies accordingly.

For personalized guidance and the latest market insights, feel free to reach out to our team of real estate experts. We're here to help you make informed decisions in this dynamic real estate landscape.

 

 

 

 

 _____________________________________________________________

 

 

In July 2023, I, as part of the GTA REALTORS® team, proudly reported an impressive total of 5,250 sales via TRREB's MLS® System. This remarkable figure marks a remarkable 7.8 percent surge when compared to the sales recorded in July 2022. Additionally, the influx of new listings during this period has shown substantial growth, surpassing expectations with an 11.5 percent annual increase.

The MLS® Home Price Index Composite benchmark has also displayed robust performance, exhibiting a notable 1.3 percent year-over-year increase. Equally noteworthy, the average selling price has experienced a significant uptick, soaring by an impressive 4.2 percent to reach an impressive $1,118,374 over the same timeframe. These numbers reflect a vibrant and thriving real estate market in the Greater Toronto Area.

In July 2023, GTA REALTORS® achieved 5,250 sales, up by 7.8% YoY, with new listings surging by 11.5%. The average selling price rose by 4.2% to $1,118,374.

 

_____________________________________________________________________________

 

 

Have Questions?

You hereby consent to receive calls or texts messages from www.erumrealtor.ca. You may unsubscribe at any time by clicking the UNSUBSCRIBE link in the email or by replying "UNSUBSCRIBE" to the text message.