01/11/2023
📅 The December numbers are in!.
As we enter 2023, it’s no surprise that the Real Estate news we are inundated with is somewhat unsettling. However, it’s helpful to approach the information about the market from a good news, bad news perspective.
No doubt, housing affordability was impeded by rates, which has reduced demand and driven prices lower. As a result, a lot of buyers and sellers adopted a ‘wait and see’ approach. We should keep in mind that home costs have declined by 19% since the slow down started. The price reductions may therefore equalize the interest rates, enabling you to still locate possibilities. Even though the number of homes sold in December was down 48.2% from the previous year, we need to keep in mind that 2021 was a record-breaking year. Additionally, we are witnessing a decline in listings in a market that has long struggled with a lack of inventory. Although it's a tough pill for prospective sellers to swalllow, after seeing their neighbours' homes sell for almost 10% more last year, the average price in Toronto grew by 8.6% over the previous year!
Because there are fewer possibilities for buyers, you can still get a very fair price if your home equity is maximized despite the decreased demand. Both buyers and sellers are challenged by rising interest rates. Mortgage approval for purchasers may become more difficult, and some sellers may see their prices drop as numerous buyers leave the market. Ideally soon, borrowing rates will level out, making it simpler for buyers with sound finances to benefit from lower pricing. This can gradually raise demand. One issue that can arise is that homeowners who renew their mortgages might receive less than ideal mortgage conditions. This can result in an increase in listings, giving buyers the perfect triad of fair inventory, reduced pricing, and eager sellers. Follow along to watch how things develop!
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For a full report please click the link below. If you want a neighbourhood-specific report please reach out to any of us here at the Nunno Group!
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https://www.nunnogroup.com/by-the-numbers-December2022
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