August 2022
I hope you have enjoyed your summer and are ready to get into the fall.
The development of new homes and condominiums in the GTA is also playing an important role as it allows buyers and investors to purchase with a deposit of only approximately 10% down over the first year or two of the construction process.
What is also attractive about buying new is, in some cases, a firm mortgage approval is not necessarily required but will be only when the project is completed in four to five years’ time
The residential real estate market has adjusted as interest rates have begun to rise.
The inventory of available homes for sale has risen to above two months of inventory, by the end of August there were 13,305 listings of all home types available for sale, up 62% compared to last year.
Prices remained relatively flat across most sub-markets, however, the markets that saw the fastest appreciation are experiencing a quicker adjustment.
Even with the volume of condominium sales down 40%, prices were up just over 3% at $711,321.
Affordability is still playing a key issue with many buyers, therefore, condominiums continue to play a role for buyers looking to enter the market.
The average price of a detached home in the GTA is $1,379,700, almost double of the average price of a condominium.
While higher borrowing costs have impacted home purchase decisions, existing homeowners nearing mortgage renewal are also facing higher costs.
There is room for the federal government to provide for greater housing affordability for existing homeowners by removing the stress test when existing mortgages are switched to a new lender, allowing for greater competition in the mortgage market.
If you are looking to learn more about the buying and investing opportunities, please do not hesitate to contact me.
Know that I am only a call, email or text away to assist with any of your real estate needs.