TRREB has just published its housing stats for the month of September. Certainly, from a macro-economic perspective, it’s been a quieter third quarter in terms of sales volume than
we’ve seen in previous years. But, as I’m sure you know by now, I am an eternal optimist. And when we take a closer look at what’s happening on the ground, I see many reasons for
optimism.
While sales have experienced a dip, the activity in real estate remains significant. At our office, we are scheduling 100 showings per day, every day. Simply stated, buyers continue to engage in the market as they take time to find the right opportunity. Single-family detached and ground-level properties are in high demand, and well-priced homes in desirable neighbourhoods are selling in a timely fashion.
After a small decrease, prices were on the rise again in September, up 3.0% year-over-year. You may have even seen on the front page of the Toronto Star that a member of the Harvey
Kalles sales team sold a home, sandwiched between two condos in the Yonge and Eglinton area, for a million dollars over the asking price!
While the condo market has been a little softer in terms of sales activity, I suspect this is largely due to investors showing a degree of caution as interest rates have risen. But again,
well-priced condominium units will always find eager buyers. One only needs to look at CentreCourt Developments and its recently launched Pickering City Centre, a 55-acre master
planned community near Pickering Town Centre. By undercutting the market, orders for available units are soaring. The first building achieved an impressive 95% sales rate within
roughly a week’s time, and the second building is following suit. So, while purchasers may be a little more discerning, there remains a strong appetite for condos, especially when the
price is right.
The other notable statistic is the increase in supply. At 4.07 months of inventory, we haven’t seen a figure like that in decades. In September 1998, supply was at 4.42 months. Again, I
find this encouraging. Selection has been limited in our market for years, and the challenges this has caused to the buyer side have been well-documented. Today, selection of available
homes is greater than at any time in recent memory. So, while prices have remained stable, the increased inventory presents an ideal opportunity for prospective buyers to exercise
due diligence and make well-informed decisions. With less competition from competing offers, the process of purchasing a home is becoming more pleasant, more predictable, and
significantly less stressful for buyers.
Later this month, the Bank of Canada is set to make its latest announcement, and many believe that we’ve seen the end of interest rate hikes. I am hopeful they will let their efforts
to reduce inflation work its way through the system without adding additional pressure on homeowners..
With these factors in mind, I think we are poised for a promising fall season in the Toronto real estate market…just be sure to remain well-informed. I would encourage anyone reading
this to reach out to me at (416) 723-2383, or to contact a member of the Harvey Kalles sales team. We have been in business since 1957 and can offer clarity around changing housing
markets.
