October 2024
Dear Friend,
While it was a decent month for GTA sales (4,996), the big news in September was the positive changes in the mortgage rates and in the lending guidelines. The changes were:
· The ability for existing mortgage holders to shop around for the best rate without facing the stress test
· Longer amortization periods.
· The ability to insure mortgages for purchases over 1 million dollars.
These changes, along with the lowering of borrowing rates will allow more buyers to qualify and allow more Canadians to fulfill their dream of home ownership.
There are always those who never miss an opportunity to miss an opportunity. Those people who have been waiting for prices to come down (they are down 5.85% from the height in 2022) are now waiting for interest rates to bottom out. What they do not internalize is that the conditions for home prices to increase are already in place. Increased cost of rentals, better borrowing rates and conditions, fewer housing starts along with large population increases since 2022 and strong economic conditions, have the GTA home prices ready to surge.
Sales in September were up 8.5% from September 2023, and I believe moving forward, we will be experiencing more sales than 2023. As the number of buyers increase, the available inventory of homes will decrease, moving us back to tight market conditions with buyers bidding each other for homes. No, its not going to happen overnight, but the process has started.
My overall advice is that if one can afford to move forward with their purchasing plans that they get off the sidelines and do so, before everyone else does.
The most important aspect of buying and selling decisions is information, knowledge. The goals, dreams and aspirations of each buyer and seller is unique. My job as a realtor is not to sell homes, but to provide my clients with the information they need to make the best decision for them, and then help them implement that decision. Sometimes it’s discouraging clients from selling their home as it might not be in their best interest to do so.
The key is knowledge. If you are considering getting into the market, let’s get together and chat, and I will give you the information you need to make the right decision for you and the future. If you know of someone thinking of buying or selling, please put us together. I will take extra good care of them!
Have a great October,
Your Friend in Real Estate.
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