In the news business, it is often said,
"Bad news travels at the speed of light; good news travels like molasses."
Despite the media's tendency to present doom and gloom scenarios regarding Canada's housing market lately, I think it's important to take a step back and see the bigger picture.
While data from the past two years, 2021 and 2022, may suggest that home values and sales have decreased by double digits in certain localized areas, this is hardly the whole story, as viewed through trained eyes with access to multiple data sources.
While there has been a noticeable shortage of inventory combined with slower sales in the GTA so far this quarter, the market is on track to become healthier and more balanced in the near future, benefiting both buyers and sellers. The latter can expect to recover most of their lost gains by year's end.
Let's take a moment to discuss the inventory shortage. According to TREB, there were approximately 55,000 additional sales in 2021 and 2022 in the GTA, compared to the usual 80,000 per year. This was due to pandemic restructuring fueled by historically low lending rates, combined with an abundance of excess capital, creating the perfect opportunity for many sellers to profit from quick turnaround and multiple offers, enabling them to pursue their future plans early.
Recently, the Bank of Canada has raised rates quickly over the last few months under the guise of easing inflation, parking a pool of buyers on the fence and creating pent-up demand. As a result, we have seen the return of multiple offers being reported in the GTA. However, this is not expected to last.
The current real estate market has undergone significant changes both locally and nationally in the last few months, including a current shortage of inventory and rate increases climbing back to normal levels, leading to a whole new dynamic.
As a professional realtor, it is essential to keep up with the latest trends and changes in the real estate industry. This hands-on knowledge enables us to offer expert advice to clients, helping them make informed decisions, ensuring that they achieve their real estate goals. If you are looking for a realtor who will provide personalized service, expert advice, and exceptional results, please don't hesitate to call me today for an appointment.