The real estate market in the Greater Toronto Area and beyond remains soft with high-interest rates, but there is speculation that the Bank of Canada rate will drop by a half-point soon. However, realtor Rob Golfi believes it may be too late to boost the fall market. The Toronto Regional Real Estate Board reported that while sales were up slightly, the number of homes changing hands was down. The average selling price for Toronto-area homes has remained flat with a one percent increase in September, while prices in other areas around the city have fallen.
Realtors in various regions such as Hamilton and Waterloo have noted fluctuations in the market. Hamilton realtor Rob Golfi reported that inventory in his area was at its highest level, giving buyers more options and time to consider their purchases. Meanwhile, realtor Tony Johal in Waterloo Region mentioned that the arrival of fresh inventory in September kickstarted the fall market with a drop in interest rates. However, offers have not been as prevalent as in previous years, indicating a slower sales pace overall.
Realtors in Toronto have reported a decrease in showings and offers compared to previous years, but note that the buyers who are active are serious and motivated. The slow sales pace in 2024 has created a surplus of inventory in Toronto, leading to longer days on the market for properties. This surplus of inventory has given sellers more room to be considerate with their decisions as buyers take time to make offers. Realtors have had to adjust their strategies in response to the slower market conditions, with some leaving the industry while others navigate the new realities.
While realtors are hopeful that a potential rate cut may boost activity in the market, they acknowledge that past rate cuts this year did not have a significant impact. New mortgage rules coming into effect in December could lead to increased activity next spring, as the $1 million price cap for insured mortgages will increase to $1.5 million, and first-time buyers will be allowed a 30-year amortization period for mortgages. This change is expected to bring in a different set of buyers with varying budgets and could spur more listings in January and February.
Realtors anticipate that the spring market in 2025 will be strong and favorable for sellers. They believe that once the market heats up, it will do so rapidly, with a surge in foot traffic and multiple offers. Despite the current soft market conditions, they remain optimistic about the future and anticipate a shift towards a more active and competitive market in the coming months. Buyers are waiting on the sidelines for better opportunities, and real estate professionals are gearing up for potential changes and increased activity in the near future.
