The real estate market in Toronto has been a topic of much discussion lately, with media outlets sharing a lot of statistics from the Toronto Real Estate Board that show changes in sales and prices year over year. While this information is undoubtedly valuable, it’s essential to note that it reflects two different markets with interest rates that are 4.25% apart. For anyone looking to buy or sell in today’s market, it’s more interesting to know what is happening in their neighborhood month over month.
Recently, the Bank of Canada signaled a rate hold pause on January 25, 2023, when it increased the overnight rate to 4.5%. It’s expected that the rate will remain unchanged on March 8, 2023, when the next Bank of Canada announcement is made. This information is crucial for anyone interested in the real estate market, as it provides valuable insight into the current state of affairs.
Currently, buyers are returning to the market, and February has seen an increase in sales compared to January 2023. In many market segments, the median prices have also been rising. There is a lot of activity in the up to $1.5 Million price range, which includes first-time home buyers, move-up buyers, and investors. It is worth noting that the ability for current homeowners to trade up because of the smaller price differential is helping to overcome the carrying costs at the higher interest rates. Meanwhile, the level of new listings coming to the market is lower than in 2022, keeping in step with current demand. In some cases, particularly in the up to $1M price range, buyers are forced to compete for properties.
If you’re interested in the real estate market in the areas of Mississauga, Oakville, Burlington, and Milton, you’ll find the January and February sales data by home type below. While it’s essential to know the year over year sales data, it’s crucial to keep track of what’s happening in today’s market based on the higher Bank of Canada rate at 4.5%. This will give you a better idea of the current state of affairs and help you make informed decisions when it comes to buying or selling a property.