Thanksgiving and Halloween are over and as we approach the upcoming festivities, I find myself taking a moment to reflect on the things I cherish in life more than ever. I am especially grateful for your continued kindness and support. With apologies, this note today is a bit longer as there is so much to share!
November in the real estate world is quite a unique time. It’s like a calm yet exciting moment with some great opportunities. For buyers, it’s a great time to roll up your sleeves and focus on your search. Waiting for the market to heat up or interest rates to settle down might mean getting into those multiple-offer situations again. Right now is the time to buy!
As we move further into fall, higher borrowing costs are having an impact. The number of transactions in Central Toronto has dropped by a significant 42% compared to the busy spring months. Property values in Central Toronto have dipped by about 7% since May. What’s interesting though, is the growing number of listings on the market. It’s up by a whopping 56% from this time last year and 34% from spring, setting a new record for the past couple of months, second only to the peak in 2020 during the COVID-19 pandemic.
Many potential buyers are taking a “wait and see” approach, thinking property prices might still drop due to increased supply, affordability issues, economic uncertainties, and high interest rates.
Now, let’s talk condos. We’re seeing some intriguing trends here. More investors are deciding to cash out because the costs of holding onto properties have gone up, and they don’t see much short-term gain. There’s also an increasing number of units for sale in buildings that would usually be off the market in a snap. And guess what? Developers are cutting prices on their remaining inventory, something I haven’t seen since the 2008-09 Global Financial Crisis. The number of assignments on the market and investors walking away from their units is alarming!
Whether prices go up or down in the coming months largely depends on the balance between new listings and actual sales. If new listings keep outpacing transactions, we can expect prices to go down. But if listings drop, like they did last year, we might see prices stabilizing. So, for all you buyers and sellers out there, flexibility and patience will be your best friends in these uncertain times.
I’m here to answer any questions or concerns you might have in the coming weeks, and I’ll catch up with you again next month. While we navigate the ever-changing landscape of the Toronto market, know that I’m here to provide you with support and valuable insights.