Opinion

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Over the last three months, the Toronto-area market has seen a dramatic shift. Demand-supply conditions shifted from near-record tight to nearly as loose as they were during the 2017 correction. Due to the area's steep prices and large mortgage sizes, buyers have been put on the defensive in the face of the Bank of Canada's rate hike campaign. Home resales have dropped by one-third in the last three months, with a 9.3 percent m/m drop in May. (on a seasonally-adjusted basis). After plummeting to historic lows during the pandemic, inventories are rebounding, rising 26% above year-ago levels in May.


Buyers’ sense of urgency has significantly diminished, and so has their willingness to enter into bidding wars. The MLS Home Price Index fell m/m in both April and May. Single-detached home values in the 905 belt—which had escalated the most in the past year—are seeing the stiffest headwinds. Condos in the City of Toronto, on the other hand, have been more resilient. We expect prices to remain on a downward trajectory as buyers gain pricing power.


Need to talk about these findings? Contact Me; 

Milind Jog 
 

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Is the GTA real estate market cooling?

Mortgage rates are rising, home sales are declining, and real estate agents are reporting fewer multiple offers. It appears that rising rates will finally bring our raging housing market to a halt.

But is it really?

According to experts Canadians want to be homeowners now, more than ever. Despite the housing price climb, despite the interest rates increasing. So the demand is still there. So why would the *cooling effect* be on everyone's, minds? 

The supply of new dwellings is not even close to keeping up with population growth and demographic shifts. So houses are still in high demand. 

Let's talk about your investment, your need to be a new homeowner, or simply how the market affects you. 

Milind Jog
Realtor
Royal LePage Credit Valley
(416) 561-7511
mjogroyallepage@gmail.com