If you’re looking to buy, sell, or refinance, this shift in interest rates is welcome new and could work in your favor. Lower lending costs and more options for both buyers and homeowners.

Here’s a summary of what going on around the decision of this latest BOC rate cut at its last meeting and the direction rates may continue to head:

The Canada economy has grown slowly at around 2% in early 2024, but spending per person is beginning to slow down. On top of that, the job market remains soft, with a 6.5% unemployment rate. This has been tough for young people and newcomers to Canada.

Looking ahead, the economy is expected to pick up slightly, with growth estimated at 1.2% in 2024, 2.1% in 2025, and 2.3% in 2026. With lower interest rates spending is expected to increase gradually. Plus, demand for housing and business investments should also grow as the economy gets stronger.

Inflation has dropped significantly since earlier this year, falling from 2.7% in June to 1.6% in September. While housing costs are still high, they are starting to ease. Additionally, lower oil prices are bringing down gas prices. Overall, extra supply in the economy is helping lower the prices of many goods and services.

Going forward, inflation is expected to stay close to the Bank’s target. As the economy strengthens, inflation should balance out, keeping prices stable for Canadians.

If the economy continues to improve, there may be more interest rate cuts. However, the Bank of Canada will carefully watch new data and decide what’s best to keep inflation steady around 2%.

The Bank’s next (and final!) rate announcement of 2024 is coming up fast on Wednesday, December 11. There is a good chance we will see another significant cut to it key rate.

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Selling your condo fast might seem like a stressful and overwhelming task, especially with the state of the current condo market. You might imagine rushing to get everything ready and fearing that you’ll have to settle for a lower price just to make a quick sale, or not selling at all. But it doesn’t have to be that way! With the right strategy, you can sell your home in a reasonable amount of time and get a good price. Here are three proven tips to help you do just that:

1. Price It Right

The first thing to consider is your listing price. If your price is too high compared to other similar condos in your area, some buyers might not even bother booking a viewing and overlook the listing. But that doesn’t mean you have to drastically lower the price either. The goal is to be strategic—setting a competitive price that’s attractive to buyers while still maximizing your return. A well-priced property will naturally attract more interest, giving you a better chance of selling quickly.

2. Stage It Smartly

A well-staged condo makes a huge difference in how quickly it sells. The good news is, staging doesn’t need to be a lengthy or expensive process. Simple steps like cleaning, decluttering, and adding a fresh coat of paint can have a big impact. Sometimes with condos, less is more! You want buyers to walk in and imagine themselves living there, so creating a welcoming and clean space is key.

3. Make It Easy to View

The more potential buyers see your condo, the higher the chance you’ll get a quick offer. To make that happen, you’ll need to be flexible with showing times. Many buyers are only available during evenings or weekends, so being accommodating with viewings can make a big difference. The small inconvenience of arranging last-minute showings will be worth it when your condo sells faster than you expected.

4. Work with a Local Real Estate Professional

One of the best things you can do to ensure a smooth sale is to work with a real estate agent who is knowledgeable of the local market. A knowledgeable agent will understand what is going on in the area, know how to price your home competitively, and can offer valuable insights on staging and marketing to appeal to the right buyers to get you the best possible price. If you’re ready to get started, feel free to contact us for a complimentary consultation. We’re here to help!

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The September 2024 real estate market in the Greater Toronto Area (GTA) brought some encouraging news for both buyers and sellers. With stable home prices and interest rates starting to ease, more buyers are beginning to take advantage of the current market conditions. Let’s take a closer look at what happened in September, why it’s important, and what it means for you if you’re thinking of buying or selling a home.

Increasing Home Sales

September 2024 saw an increase in home sales compared to the same time last year. According to GTA REALTORS®, 4,996 homes were sold in September, which is an 8.5% increase from September 2023 when 4,606 homes were sold. This boost in sales is partly due to interest rates trending lower, which has made it more affordable for buyers to enter the market.

More Homes, More Choices

In addition to the rise in home sales, there has also been a significant increase in the number of new listings. In September 2024, there were 18,089 new listings, which is 10.5% more than what we saw in September 2023. This increase in listings gives buyers more options to choose from, which also increases their ability to negotiate prices.

What does this mean for buyers and sellers? For buyers, more homes on the market mean more opportunities to find a home that fits their needs and budget. Sellers, on the other hand, need to price their property strategically according to the market as buyers now have more choices.

What’s Happening with Home Prices?

While the number of homes sold and listed increased, home prices have seen a slight dip. The MLS® Home Price Index Composite benchmark was down by 4.6% compared to last year. The average selling price for a home in the GTA in September 2024 was $1,107,291, which is just a 1% decrease from the September 2023 average of $1,118,215.

Interestingly, on a month-to-month basis, the average home price inched up slightly compared to August 2024. This suggests that while prices may have dropped year-over-year, they are beginning to stabilize, which could be a sign that the market is adjusting to the new conditions.

The key points: For buyers, the dip in prices means it’s a great time to start looking for a home, especially in segments like condos and townhouses, which are seeing the biggest price drops. These more affordable housing options are especially attractive to first-time buyers who are looking to enter the market. Sellers, however, may need to adjust their expectations when it comes to pricing, but the overall increase in sales and listings shows there’s still strong interest in the market.

Positive Changes to Mortgage Guidelines

Another factor that will help home sales is the recent changes to mortgage lending guidelines. Over the past month, there have been several adjustments aimed at making it easier for homebuyers to get the possible deal on their mortgage. One key change is that existing mortgage holders can now shop around and change lenders without having to pass the stress test again. This allows for more affordable mortgage renewals, and will create more competition between lenders giving homeowners some breathing room when it’s time to refinance.

Additionally, the introduction of longer amortization periods and the option to insure mortgages for homes priced over $1 million gives buyers more flexibility, especially in a market like the GTA where home prices are much higher than the national average.

What to Expect in the Future

The increase in home sales and listings, along with changes in mortgage guidelines, points to a recovering market. As borrowing costs continue to drop, we can expect more people to enter the housing market, especially first-time buyers and those looking to invest in a second property.

If you’re thinking about buying a home, now might be the perfect time to make your move. With more homes available and rates trending lower, there’s a lot of opportunity. On the other hand, if you’re a seller, you’ll want to keep an eye on market trends and properly positioned in the marketplace when you are ready to list. While prices are slightly lower, they have stabilized and the steady rise in sales suggests there is still strong demand for homes, particularly in the GTA.

The market is changing, and there’s plenty of opportunity for those who are ready to take the next step in their real estate journey. Subscribe to our newsletter to receive monthly updates on GTA market trends.

🔗 See the market overview chart here

In line with the recent TRREB market report, September brought good news for both buyers and sellers. Home sales went up by 8.5% compared to last year, with 4,996 homes sold. There were also more homes on the market, with 18,089 new listings—a 10.5% increase from last year.

Home prices dropped a bit, with the average price at $1.1M, down just 1%. This small dip, along with lower interest rates, makes it easier for buyers to get into the market. First-time buyers, and those looking for condos or townhouses, will find great opportunities.

Mortgage rules have also improved, letting homeowners look for better rates without going through the stress test again. Longer amortization periods and the ability to insure mortgages over $1M also give buyers more flexibility.

Overall, the market is balancing out, creating benefits for both buyers and sellers.

Take a look at the full September market overview charts below:

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