Monday Oct 03rd, 2022
As the leaves begin to change, the real estate market may be changing in your favor as well. The fall selling season is approaching at it produces waves of sales second to the traditional spring selling season.
The qualifying amount that consumers may now qualify for has decreased significantly as a result of the recent 3% rate rise, which also increased the stress test rate from the initial 5.25% earlier this year.
Housing prices are being corrected as a result of the smaller qualifying amount and the high interest rate scaring consumers away from making any major purchases. When the BoC meets again in October and December of this year, they anticipate another 75 bps rate rise, which will further reduce qualifying amounts and further correct house prices in 2023.
Now, if inflation goes down by 2023, the only to spark up the housing market again would be lowered rates or a lowered stress test rate or an increase in amortization to 35 or 40 years.
Throughout September, the real estate market prices remained relatively docile; prices have been dropping since March 2022. However, I would not say that nothing is being sold or bought. There are buyers on the market, and they are not just looking but buying. I am talking about western Toronto and Mississauga.
A recent deal of mine was there, and I was involved in buying/selling a home. According to statistics, those sellers who expect realistic prices for their real estate and understand that they will also buy a new home at today`s prices quickly receive buyers` offers.
Sellers who are waiting for spring prices to return choose to remove houses from sale and improve their properties. But I would like to add that some areas are still demanded, and competition still occurs.
If you’re considering buying or selling, let’s talk about how sales around your neighbourhood are affecting your homes value.
It is my job to figure out how to turn your real estate needs into a reality. Give me a call - lets get started today.