Well, it’s been a year! For the first time in a long time our first response when it comes to Toronto Real Estate is not “it’s bonkers out there!”
For the most part we saw a general slowing of the market, which is not a bad thing. The rate in which prices were increasing and more so, the means by which some people felt compelled to go about buying a new home was becoming unsustainable and in some cases pretty risky.
We walked into 2023 with yet another rate hike of 25 basis points which proved to have the desired effect of cooling the housing market for the beginning of the spring. A rate hold in March and April had buyers jumping back in, resulting in a return to bidding wars and prices trending upwards. This put pressure on inflation and was cause for the Bank of Canada to raise rates twice more in June and July. These rate increases have proven to force many of us to watch our pennies a little closer.
The final 3 rate announcements of the year saw the BOC holding the prime rate at 5.25% These latest holds are positive news, it’s true we are all feeling the pinch, but it hasn’t had the same effect on the market as the previous holds had. There was certainly some hesitancy from both buyers and sellers toward the end of 2023, the question is will this climate end in pent up demand or continued trepidation?
There is much speculation as we ease into 2024. Many of these predictions depend on how the economy fairs going forward and the direct impact of inflation and interest rates.
We still haven't found that crystal ball but we do believe amid challenges, our city continues to showcase its enduring appeal, with a dynamic interplay of supply and demand.
Regardless of which direction we go, here at LTHome we understand that personal circumstances play the biggest role in our clients' needs or desire to move. Trust that we have the time, experience and knowledge to help you through a successful Real Estate journey regardless of the outside noise.
We are always happy to sit down and strategise the best options with you, regardless of if that means we take the “wait and see” approach, the “hustle now” approach, or something comfortably in between.
