Speed read – TL;DR:
GTA – January Update
Sales in January was the second lowest for the month of January in 20 years with 3,100 sales, a shift from 5,594 a year earlier, when the market adopted a frenzied pace and bidding wars were the norm. New listings are also at the second lowest for the month of January in 20 years. The market is still undersupplied🔻, especially for low-rise houses.
For the last 6 months, the market has found a floor with an average price hovering between 1M-1.1M. Inflation is trending in the right direction, as a result, the Bank of Canada suggested interest rates should stay where they are for the time being. This has given more buyer confidence, and we are definitely seeing an increase in demand.
Something I have been noticing while searching for homes for my buyers is that almost half of the new listings now have an offer date which means the sellers are expecting multiple offers. And no, the sold price isn’t breaking records. In fact, homes aren’t selling for over list just because agents are pricing them low. Many buyers are now bidding with confidence because they believe the market has found a floor with the interest rates expected to stay where it is.
Below is an example of one home that made BlogTo’s headline. This 3-bedroom 1960s bungalow spent only 7 days on the market before being sold for 1 million, 102K over-asking price. This home attracted 200 visitors in a short week. Note: it is not updated, nor was it located in a good area. Crazy right?!
The inventory is so low, buyer optimism is setting the price right now. For the most part, people are paying current market value, even when homes have multiple offers. It can be confusing to know what the current market value is with asking prices all over the place.
Many homes that were sitting on the market in November and December with few showings and low-ball offers… are now selling, and in some cases with bully and multiple offers!
Mississauga – January Update
Sales are down almost 50% compared to last year and price is down 20%. But month-over-month, we are seeing price increase in the condo and townhome segments, 6.4% in townhomes and 2.3% in condos.
What’s interesting to note is the number of listings in Mississauga is up almost 90% from December but is still down 6% compared to last January.
With the drop in sales and the drop in listings, we are still at 2.85 months of inventory, which has been hovering around same for the last 6 months. The demand and lack of listings is keeping the market on the seller’s market side of a balanced market.
Although rates will remain at these levels for some time, at least the forward guidance provides some clarity, allowing buyers to enter the market knowing that we are around peak rates.
There may be still more price softening ahead of us, but you may not want to wait till the bottom in case you miss it. We will only know the true bottom when we are on the way up.
If you’re thinking of moving this year, it’s advisable to start planning sooner. Whether to upsize or downsize in today’s market depends on your individual circumstances, I am here to support you to make an informed decision that’s best suited for your family. Book a call with me to discuss your options.
For daily updates and insights on the market and other investment tips, go follow me on Instagram @Mister_Sauga!