Made to Measure Going Forward. The bank of Canada continues quantitative tightening with another announcement to kick off the Fall market. This year’s fifth hike, up to 75 basis points, equates to a 3.25% interest rate. Potential buyers must now qualify near 7% with the existing stress test measures. These increases and national headlines have our clients asking similar questions; What’s the market temperature check? Who is still buying? What’s the brokers feedback? How are incentives changing? And when should we launch? The reality of our current market is that there isn’t a one-size-fits-all recommendation.
Hovering just below $1.1 million, the average selling price may have found some support during the last couple months of summer. With new listings down quite substantially year-over-year and well-below historic norms, some home buyers are quite possibly experiencing tighter market conditions in some GTA neighbourhoods. October generally represents the peak of the fall market, so it will be important to see where price trends head over the next month.
TRREB Chief Market Analyst Jason Mercer
Detached
416: 477
905: 1,726
Average Price: $1,362, 598
Number of Sales: 2, 203
Decrease per Year: 46.2%
Source TRREB Market Watch, July. 2022
Town House
416: 200
905: 616
Average Price: $903, 899
Number of Sales: 816
Decrease per Year: 51.6%
Source TRREB Market Watch, July. 2022
Condo Apt
416: 963
905: 402
Average Price: $719,273
Number of Sales: 1,65
Decrease per Year: 47.5%
Source TRREB Market Watch, July. 2022
Each project has its unique set of advantages and obstacles, and when appropriately positioned with compelling incentives and pricing packages, success is attainable, even during the dog days of summer. It’s no secret the market is much different than in Q1 2022. The current purchaser climate is rapidly transforming and the industry needs to adjust accordingly.
5627
Sales Activity
Source TRREB, Market Watch August. 2022
$1079500
Average Price
Source TRREB, Market Watch August. 2022
10537
New Listings
Source TRREB, Market Watch August. 2022
75+
International Projects
205+
Clients
171+
Industry Awards Since 2oo3
45+
Years in the Making
850+
Projects
$70+
Billion in Sales
150+
Team Members Trained in the Milborne Method
165K
Units Marketed and Sold
Detached
416: 497
905: 1,837
Average Price: $1,369, 186
Number of Sales: 2, 334
Decrease per Year: 40.0%
Source TRREB Market Watch, September. 2022
Townhouse
416: 171
905: 659
Average Price: $901, 592
Number of Sales: 830
Decrease per Year: 46.5%
Source TRREB Market Watch, May. 2022
Condo Apt
416: 875
905: 442
Average Price: $730,818
Number of Sales: 1,317
Decrease per Year: 49.2%
Source TRREB Market Watch, September. 2022
Though today’s pace is unlike what the market experienced over the last five years, the cycle continues as “what goes up, must come down”, and interest rates are no exception. Luckily, with nearly five decades of industry knowledge at Milborne Group, we successfully support clients in navigating through these cycles with unmeasurable insight that only experience can offer. Stay in tune with us for more market updates.