Despite the cold winter season that often discourages buyers and sellers alike from entering the market, new listings have increased by a staggering 88% since December. This January, 7,688 new listings entered Toronto and GTA markets, an increase of 88% month-over-month, compared to the 4,074 newly listed properties in December 2022.
This level of new listings is right on the heels of the numbers in January 2020, which was eight rate hikes and one pandemic ago. There were 7,836 new listings in January 2020, just 1.9% more than today’s current levels. Zoocasa Managing Broker, Claudio Castro explains, “As the most recent Bank of Canada rate announcement gave buyers and sellers alike some hope that rates may be held in the future, sideline buyers are finally entering the market again, and sellers are taking notice.” In terms of months of inventory, January 2023 was right in line with the two months of inventory that was available in January 2020.
But, are these good news?
What it has been keeping prices stable, without dropping due to the mortgages rates increases, was the lack of inventory. Now more homes coming on the market might cause a reduction in prices, unless more buyers enter on the market as well.
So far what we are seeing is more listings and the same amount of real estate transactions in January. Only well prepared houses aggressively priced are selling fast.. Other are staying for months in the market.
Month-over-month, sales were down by just 0.5% overall in the Toronto Region according to the Toronto Regional Real Estate Board (TRREB), however, cities including Oakville, Brampton, and Whitby each experienced a slight increase in sales numbers month-over-month.
Someone asked me if it was better to buy with higher prices and lower mortgages rates and it is actually the other way around.
It is better to buy when you have higher rates and lower real estate prices because higher rates wont stay for long and you will make tons of money when real estate prices go up again.
When you buy with lower rates you don’t make money when they go up, only when house prices goes up… if you bought!