The real estate market in the Greater Toronto Area and surrounding regions is currently soft due to high interest rates. However, realtors are hopeful that the market will pick up the pace in the upcoming spring season. Speculation suggests that the Bank of Canada rate may be dropped by a half-point in the near future, potentially boosting the market. Some realtors are concerned that the sluggish fall sales could lead to an overheated spring market. Recent data from the Toronto Regional Real Estate Board showed a slight increase in sales but a decrease in the number of homes changing hands, with the average selling price remaining relatively flat in September.
Prices have fallen in various areas around the city, with a realtor in Durham Region noting a nearly 10% reduction in average prices. In Waterloo Region, a realtor mentioned that the fall market saw an increase in fresh inventory, generating more interest from buyers with new options available. While sales were slightly up in Toronto, realtors have not seen as many offers as in the past, indicating a quieter market compared to previous years and the spring season. Some realtors have observed a decrease in showings, but note that serious buyers are still actively looking for properties.
The market slowdown has resulted in a surplus of inventory, leading to longer days on the market for properties in Toronto. Sellers now have more options and are not feeling rushed to make decisions, with fewer offers being made compared to previous years. As a result, houses are taking longer to sell, with the average days on market increasing from 30 to 43. Realtors are adjusting their strategies, paying closer attention to each detail of the sales process, and adapting to the changing market conditions. Some realtors have noticed an increased number of buyers waiting for further interest rate declines.
Realtors are anticipating an increase in market activity next spring, with new mortgage rules coming into effect soon. Changes to mortgage regulations, such as an increase in the price cap for insured mortgages and a longer amortization period for first-time buyers, are expected to attract new buyers with varying budgets. Many sellers are waiting to list their properties in January and February, anticipating the impact of these changes on the market. Despite the current slowdown, realtors are optimistic about the potential for a strong spring market in 2025, with buyers waiting to enter the market at the right time.
Some realtors believe that the market will quickly shift when it begins to warm up, with activity picking up rapidly. The impact of upcoming changes in mortgage rules, combined with potential interest rate decreases, could lead to increased market activity in the upcoming year. While the current market conditions remain soft, realtors are optimistic about the potential for a turnaround and increased buyer interest in the spring of 2025. With a record number of potential listings expected in the early months of next year, real estate professionals are preparing for what could be a busy and dynamic market in the near future.
