Dear friends, November 2023 – Real estate Market Update Letter.

November 2023

Dear valued clients

Though not shocked, we are startled nonetheless. Despite rising mortgage rates and “”nervous”” expectations about how prices will be affected, sales numbers and prices were similar to previous year.

In October, realtors in the Toronto area sold nearly 4,700 houses, with an average sale taking just 21 days. Year to date, the average sale price is $1,136,681, a 4.7% decrease from the beginning of the year, but this is not significant given that the “mix” of homes sold favors less costly residences due to the higher cost of borrowing.

The difference we observe now versus a year ago is that the quantity of homes for sale, or inventory, has risen to about 20,000, or around 4 months’ supply, which is the largest we have seen in a long time. This reflects the fact that, while individuals want to buy, increased borrowing rates and apprehension about the unknown are putting them on the sidelines.

This 4-month inventory, combined with increasing interest rates, represents an excellent buying opportunity for those who can afford it. While prices haven’t plummeted as far as the negative nellies anticipated (These predictions have been circulating since the year 2,000, literally! ), the bigger inventory provides for more options, as opposed to “this is the only home, so buy or lose it!”

Our real advice is to get off the bench! Buy if you can afford it! There is no doubt that prices will continue to rise, and we believe dramatically, due to population growth and inflation.

Give us a call and we’ll talk about the fantastic potential in this market and how we can assist you in reaching your objectives. If you have a friend who is considering of buying or selling, please let us know; we will do everything we can to help them, even if they are just suggestions. We sincerely appreciate your assistance in making our business a success.

Have a wonderful November!

Your Friend in Real Estate.