It’s been a long, hot summer with very little rain—the flowers and the grass are in constant need of watering to avoid drying out. The same can be said for the summer Real Estate market in the GTA. Despite the lack of big numbers as far as prices are concerned, there are still signs of life! The constant nurturing has had a positive effect, just like in the garden, patience and consistent care will eventually yield results. With the number of active buyers growing and a potential rate cut coming, we firmly believe we are moving into a much more dynamic Fall market.
Typically, the spring and fall markets are the most active, with the majority of home sales happening during these brief seasons. In years past, it’s been the spring market that’s been the leader in transactions; however, it’s beginning to look like that might not be the case this year. Momentum is starting to build as July and August have been more active than usual. Year-over-year statistics for these months show increases in the number of active listings and the total number of transactions. The fear of a recession is still there and is reflected in the selling price of GTA homes, but society is starting to come to terms with the new normal. It’s true, home prices have come down, and it appears as though these prices will be around for some time. That being said, there are still a vast number of sellers who cannot or will not part with their property for what the market is dictating its worth. Prices will not drop continuously, and evidence of prices plateauing is evident.
Total transactions in July increased by a whopping 11% compared to July 2024, marking the most activity reported in July since 2021. “It’s clear that a growing number of households are finding affordable options for home ownership,” said the President of Toronto’s Real Estate Board. However, she went on to state that to truly revive Toronto’s real estate market, more change is needed “particularly where borrowing costs are concerned.” If Canada’s economy continues its resilience in the face of US uncertainty and Tariffs, we could see interest rates come down. Lower interest rates would bring a surge of buyers to the market. The Bank of Canada will be watching closely as the Americans appear as though they are heading towards an interest rate drop.
What’s changing in the market is the level of demand. Supply is there, and buyers are starting to realize that with good prices and plenty of selection, now is the right time to make a move. Especially if you are planning to upsize. The market is showing signs of more balance, which lessens the leverage buyers are currently enjoying. If you are a buyer or an investor, now is the time!
There are currently a lot of prospective buyers waiting for the Bank of Canada’s next interest rate announcement, coming on September 17th. All indications are that they will drop the rate. Some are saying it could be a big drop of 0.75% however, we feel it will probably be more conservative. 0.25% is most likely, but 0.50% is not out of the realm of possibility. Their decision is always a reflection of the current job market and the state of inflation. Those numbers will be released on September 16th and will give us a clearer indication of the health of our economy. If there is a rate drop, there will definitely be increased activity; how much action will depend on how deep the cut is.
At Tate Homes, we are positioned to handle the increased activity. We are poised to take advantage of the lower rates for buyers and are prepared to engage with all potential buyers for our sellers. Which ever side of the market you are on, buying, selling, or both, reach out to us and we will guide you through every step of the process. We look forward to hearing from you today!