I can't believe that we are already in September and the leaves are starting to turn. This is a great time of year to get yourself ready for the changing seasons, clean up your flower beds and get those kids back to school or sent off to university.
As we head into the fall historically this is the time of year when we see a pick up in the real estate market for a few months before Christmas. The recent Bank of Canada announcement to hold the current Bank of Canada rate at 5% comes as the Canadian economy reported slow economic growth for the second quarter of 2023.
What does this mean for the real estate market? According to the Toronto Regional Real Estate Board (TRREB), higher borrowing costs, continued uncertainty about the economy and Bank of Canada decision making, and the constrained supply of listings resulted in fewer home sales in August 2023 compared to August 2022. On a seasonally adjusted monthly basis, sales and average price edged lower. In the short term, we will likely continue to see some volatility in terms of sales and home prices, as Buyers and Sellers wait for more certainty on the direction of borrowing costs and the overall economy,” said TRREB President Paul Baron.
In the York Region area we are seeing an increase in inventory and numerous price reductions from Sellers that need to sell. Prices may continue to move downward in the next few months as inventory increases and Buyers have more choice.
The fall market is a great opportunity for Buyers that have been sitting on the sidelines, and bidding wars may be a thing of the past. We are definitely moving into a more balanced market. Sellers should not wait any longer if they plan to sell as prices may be less next year. If you are buying and selling then whatever the market is doing will not have a huge effect on you.
Enjoy the rest of the fine weather and please don't hesitate to reach out if you are thinking of buying or selling. We would be happy to discuss all of your options.
- Jill Renshaw, Broker
The next Bank of Canada rate decisions will be on Tuesday, October 23.