Fall Market Forecast
It’s no secret there is still uncertainty surrounding the fall real estate market for most Canadians given recent prime lending rate increases and fluctuating levels of inventory in the GTA.
We, at the Dan Cooper Group, have experienced market highs and lows for over 25 years. We’ve compiled some insights to help you understand and navigate the market this fall.
Know Your Neighbourhood
GTA sales statistics are important to consider as they show us the overall temperature of the market but we do need to be aware that these figures can also be misleading. It is far more important to understand the real estate activity within your own city and, more specifically, your own neighbourhood.
Foreign Investor Influence
The GTA experienced an unprecedented market this spring. An influx of foreign investors coupled with a short supply of listings created multiple offer situations resulting in inflated sale prices. Sellers today still want top dollar for their homes based on record prices from earlier this year, while buyers seem to be waiting on the sidelines for the market to stabilize.
Factors that Impact the Market
Price in real estate is generally determined by supply and demand. An over-abundant supply creates lower demand and listing prices get reduced to remain competitive. Conversely, a lower inventory of listings creates strong demand and prices rise. When viewed this way it paints a more accurate picture of the state of real estate. Statistics show we are now moving towards a more balanced market.
Months of Inventory
When we look at months of inventory (sales versus active listings) across Canada, some cities are sitting on 6 to 7 months of inventory as of August. When you compare the GTA to the rest of Canada we are sitting at a very healthy number of 2.6 months of inventory. This represents a more balanced market where there’s enough inventory to give buyers choice but not too much that it negatively affects the seller.
Overall, yes the market has shifted and we are not seeing the same level of activity we saw earlier in the year. However, we are now closer to a more balanced market and can expect to see it pick up again over the next few months.
Real estate in Oakville and Burlington continues to be a sound investment and both are fabulous communities in which to live! We continue to list and sell homes every day and are only a phone call away to answer any of your real estate questions.