Real Estate Market Update - January 2024
The Greater Toronto Area real estate market finally seems to be picking up again after a very slow end to 2023. Home sales were up in January across all market areas. Compared to December 2023, sales increased as much as 34%. Sales are also up considerably compared to last January. The amount of new listings also increased on a year-over-year basis, but not at the same pace as sales, resulting in tighter market conditions. Demand for real estate has risen since the holiday season, which is resulting in quicker sales, close to or above asking price, and in some cases, multiple offers. The recent dip in fixed mortgage interest rates has caused many buyers to re-enter the market. Sales prices are still holding steady, with no notable upticks or declines. On a year-over-year basis, average prices have not changed. However, as we enter the spring market, data is pointing towards renewed price growth. The Bank of Canada expects inflation to recede as we move through 2024, which would support lower interest rates. Experts are still predicting an interest rate drop in mid 2024, which would strengthen buyer confidence and further increase ownership demand. Over the next two years, the GTA real estate market will likely see upwards pressure on sales prices, as inventory remains low and buyer demand steadily increases. With the currently high average rents, many first-time buyers will take advantage of the coming lower interest rates, making the move to home ownership more affordable. If you would like to know more about how this changing market will affect your real estate plans, reach out to me. To see how prices have been affected in your area, please click the link below to get access to TRREB's January Market Statistics for all areas in the GTA. The stats are broken down by average sales price, number of homes sold, number of new listings, and average days on market for each property type; detached, semi-detached, townhouses, and condos. https://trreb.ca/files/market-stats/market-watch/mw2401.pdf If you want to know more about what is happening in your specific area, you can book a call with me by clicking the link below. https://calendly.com/davidrizzuto/consultation-call?back=1&month=2024-02
Unlocking Homeownership With The New First-Time Home Buyer Incentive
Canada's new First Time Home Buyer Incentive is designed to financially assist first-time home buyers without adding additional financial burdens, and is already helping thousands of Canadians purchase their first home. There are no additional monthly payments, which reduces the carrying costs associated with home ownership. Through this incentive, the Canadian government provides 5% to 10% of a first-time buyer's purchase of a newly constructed home, or 5% for a purchase of a resale home or mobile home. The financial aid provided is to be used towards the down payment for the home. The incentive must be paid back to the government in full after 25 years or when the home is sold. The program works as a shared equity instrument. If the home appreciates in value over time, participants would owe the government the full incentive amount plus a maximum gain of 8% per annum on the incentive amount. If the home depreciates in value, participants would owe the government the full incentive amount minus a maximum loss of 8% per annum on the incentive amount. To be eligible, participants must meet the following criteria: Total annual income less than $120,000 (or $150,000 if purchasing in Metro Toronto) The total borrowing amount is no more than 4 times your annual income (or 4.5 times if purchasing in Metro Toronto) Must be a Canadian Citizen, permanent resident, or non-permanent resident authorized to work in Canada Must meet minimum down payment requirements without borrowed funds The mortgage must be greater than 80% of the property's value and is subject to mortgage loan insurance Only applies to residential properties with up to 4 units The participant must live in the property as their primary residence If you want to learn more about this incentive, reach out to me. As a first-time home buyer, it is essential to have the right guidance by your side.
December 2023 Real Estate Market Update
2023 was an interesting year for the Greater Toronto Area real estate market. With a slow start to the year, followed by an uptick in activity in the Spring and Summer, and steadily declining demand and prices to end off 2023, this past year presented an ever changing landscape for buyers and sellers. The total number of home sales in 2023 totaled less than 70,000 in the Toronto Regional Real Estate Board; a record low in recent years. This is down about 12.1% compared to 2022, and down a stagering 45.8% compared to the record high in 2021. The low amount of activity is mostly attributed to affordability issues created by high interest rates. However, housing demand in the GTA still remains high. Most housing demand in 2023 was pointed towards the rental market, as Canada reached record immigration in 2023. 2023 prices saw a decline of 5.4% compared to 2022. Prices have edged slightly lower or remained stable in most markets from November to December 2023. Average days on market continue to increase across all markets, now sitting between 40 and 60 days. Buyers in 2023 benefited from more choice, higher negotiating power, and lower selling prices, which has somewhat mitigated the impact of higher borrowing costs. Most experts believe that the real estate market is currently at its lowest point seen in recent years, and shortly, consumer confidence will strengthen which will result in more activity and rebounding prices. As interest rates begin to come down in 2024, we can expect tighter market conditions. If you are planning on buying, selling, or investing in 2024, reach out to me. In this constantly changing market, it is important to have professional guidance on your side. To see how prices have been affected in your area, please click the link below to get access to TRREB's December Market Statistics for all areas in the GTA. The stats are broken down by average sales price, number of homes sold, number of new listings, and average days on market for each property type; detached, semi-detached, townhouses, and condos. https://trreb.ca/files/market-stats/market-watch/mw2312.pdf If you want to know more about what is happening in your specific area, you can book a call with me by clicking the link below. https://calendly.com/davidrizzuto/consultation-call?back=1&month=2023-05
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