GTA Real Estate Market Update: October 2023 Insights

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The Ever-Adaptive GTA Real Estate Landscape

As we wrapped up October, a mix of stability and fluctuations in the Greater Toronto Area (GTA) real estate market was evident. Despite ongoing economic pressures, such as rising interest rates impacting consumer confidence, the market showed resilience in several aspects.

Key Trends and Statistics

  • Steady Market Dynamics: The overall market activity, in terms of average prices, units sold, and days on market, remained consistent with the previous month. This stability is a testament to the market’s ability to adjust to changing economic conditions.
  • Strong Demand in Select Areas: Interestingly, a significant number of sales were recorded at or above the asking price, indicating pockets of high demand within the GTA.
  • Varied Regional Performance: While the general market showed little monthly change, certain areas displayed remarkable growth in sales. For instance, in freehold unit sales, Pickering saw a 45% increase, followed by Markham and Mississauga, each with an 18% rise. In the condo apartment sector, Vaughan led with a 39% increase, with Richmond Hill following at 13%.

Detailed Market Breakdown

  • Freehold Properties: There were 2,886 sales, with the average days on market at 18. Nearly half of the GTA areas experienced more sales and an increase in average sale prices compared to September.
  • Condo Apartments: 1,263 units were sold, averaging 26 days on market. Many areas saw an uptick in sales and average sale prices, though only 26% of condos sold at or above asking price.

Overall Market Outlook

Despite some areas still grappling with slow showings, the overall market in the GTA is holding steady. This resilience is particularly noteworthy given the current economic backdrop and its impact on consumer behavior.

Sharing Real Market Data

As we continue to monitor these trends, it’s essential to share accurate and up-to-date market data. This information not only reflects the dynamism of the GTA real estate market but also serves as a valuable resource for stakeholders to make informed decisions.

Stay Informed

For a more detailed analysis or specific data on other Ontario markets, feel free to reach out or explore further. Keeping abreast of these changes is crucial in understanding and effectively participating in the GTA real estate market.

The TanTeam Editorial

 

The TanTeam’s 2023 Q4 Real Estate Radar: Let’s Talk!

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The last quarter of 2023 is shaping itself into an interesting time for real estate market go-ers and here is the latest bite sized updates:

Bank of Canada Keeps Overnight Rate Stable: On September 6th, the Bank of Canada announced its decision to hold its overnight rate steady. This move, combined with the current higher-than-average listings on the market, sets the stage for an anticipated and busy last quarter of the year.

Sales Activity on the Rise: Following the Labour Day holiday, we have witnessed a notable uptick in sales activity. Home prices remain steady, although some areas are moving quicker than others. This presents a prime opportunity for those considering trading up by transferring their existing low-rate mortgages or smart-sizing to another home to create a more comfortable financial situation without sacrificing much.

Mortgages – Unlock Your Financial Options: If you purchased your property before the 2nd quarter of 2022, you may have secured historically low mortgage rates of 2.79% for a 1-year fixed or 2.15% for a variable rate. Now, you might be feeling some financial pressure. Don’t worry; there are solutions:

  • Consider refinancing, selling, or renting out your current property and explore more affordable options, perhaps with a secondary unit.
  • If you locked in at the lowest rate with a 5-year term, you can “move up” by making up the difference with additional cash or by “extending and blending” your mortgage. This means you extend your initial term or longer and pay the current rate on the additional borrowed money, ensuring you still enjoy a great rate with more house than you could have afforded a couple of years ago.

Landlords – Navigate Rent Control Challenges: For residential landlords with properties built before November 15th, 2018, subject to rent control in Ontario, we understand the growing gap between current rent and market rates may be a concern. Here are some trends to consider:

  • Some landlords are selling and reinvesting in properties where they can charge market rent.
  • Others are opting to move into their investment properties or have immediate family members do so.
  • In cases where properties are held in corporations, selling and buying anew becomes a viable option such as a “property swap”

Residential Tenants – Be Informed and Proactive: Tenants, it’s essential to stay informed and proactive in this dynamic market. If you’re paying substantially under market rent, be aware that you run a higher risk of having to move. Here’s why:

  • Landlords aim to keep up with current market rates.
  • Independent landlords can give notice and move in.
  • Both independent and corporate landlords can choose to sell.
  • Investor buyers prefer properties with rental income closer to market rent which means you might need to move out.

If paying closer to market rent isn’t an option, consider your long-term housing plans. Buying may be a viable solution. You could explore purchasing your current rental property or finding something within your budget. Either way, taking action or formulating a plan is crucial.

The real estate landscape is full of opportunities and possibilities, and we’re here to help you make the most of them. Reach out to The TanTeam today for personalized guidance tailored to your unique situation.

The TanTeam Real Estate Group

-Kai and Tan

Title Insurance Fraud – Are You Protected?

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Part of what we do to ensure we continue to provide the best advice and services that our clients reasonably expect. We had took part in an interesting presentation that highlighted some potential concerns about your home title insurance that we’d like to bring to your attention.

If your home was purchased before 1998, there is a possibility that you may not have title insurance. Additionally, if you acquired your property between 2000-2005, chances are its value has doubled by now. While this is undoubtedly good news, it also highlights the need to ensure that your title insurance is up-to-date and provides adequate coverage.

You may be wondering why this is so important. Title insurance fraud is becoming an increasingly prevalent issue, and data suggests that homeowners from the above-mentioned time frames are at the highest risk. Title insurance is vital to safeguard your property against potential fraud, such as forged deeds or fake claims on the property.

Typically, title insurance policies only cover up to 200% of the purchase value of your home. As your property’s worth may have significantly increased, it’s crucial to reevaluate your coverage to guarantee the utmost protection.

Ensuring your home and investments are protected is one of the many things we do to make it easy for you, and we’re here to help. We encourage you to reach out to us for a consultation on your current title insurance policy and explore options to ensure that your home remains safe and protected!

The TanTeam Editorial