Canada's economy experienced a modest 0.3% growth in GDP during May. However, it is projected that this growth may slow down in June, with an expected decrease of 0.2%. If this projection holds true, it would result in a 1.2% increase in the economy for Q2 of 2023, which is lower than the previous quarter's 3.4% increase and also falls short of the Bank of Canada's initial estimate of a 1.5% increase for Q2. The slowdown in economic growth has been a focal point for the Bank of Canada, and it may impact their decision on implementing another rate hike in September.

Given the recent economic performance and projections, there could be potential implications for the Fall Real Estate Market. The lower-than-expected GDP growth may affect consumer confidence and spending patterns. However, the overall impact on the real estate market will depend on various factors, including inflation rates and interest rates, which are yet to be announced.

To have a clearer picture of how the Fall Real Estate Market may be affected, it would be prudent to keep an eye on the upcoming updates on inflation (August 10th) and GDP for Canada (September 1st), as well as the rate announcement on September 6th. These key economic indicators will provide valuable insights into the direction of the economy and its potential impact on the real estate sector.

That said, the biggest factor for real estate in recent months has been interest rates. As we have seen throughout 2023 when interest rates stabilize more buyers enter the market and that puts upward pressure on pricing.

Below you can find a schedule of all Bank of Canada interest rate announcements for the remainder of 2023:

• Wednesday, September 6
• Wednesday, October 25* Monetary Policy Report Published
• Wednesday, December 6

Sources: Bank of Canada News / Summary provided by Steven J. King, Principal Broker at Verico SGH Mortgages Inc. 

The market was more balanced in July

The market was more balanced in the Durham Region, yet still considered a seller's market* with only 2 months of inventory despite a decline in sales and average price across the region in July.

Every city/town is unique as are the communities within them. Scroll through to find your town.

What's the Takeaway?

The market has slowed down slightly in July but historically the dog days of summer are when demand decreases due to buyers putting off their searches. However, buyers could also be feeling the results of June’s interest rate announcement when the Bank of Canada increased its policy rate by 0.25%.

Sellers need to stay abreast of market conditions especially as we head into September when the Bank of Canada’s next interest rate announcement will take place.

Buyers can take advantage of summer months with a little less competition and perhaps feel a little less rushed with average days on the market increasing.

What should we expect for the Fall Market?

Is this month’s sales a result of seasonality or the Bank of Canada’s interest rate increase in June? That is the question. It’s likely a little of both. If September brings another rate increase we can expect that to further impact purchasing power and in turn sales and pricing in the Durham Region.

If not the Fall Market may bring more buyers back into the market and increase competition for a limited supply of homes.

Read How will Canada’s Economy Impact the Fall Market

As always follow us and reach out with any questions you have on this ever-evolving real estate market.

*What constitutes a seller's, buyer's, or balanced market?

• 2 or fewer months of inventory is a seller's market
• 3-4 months of inventory is a balanced market
• 5+ months of inventory is a buyers market

If no new properties came on the market it would take less than 2 months to sell all the available homes.

What's Happening in The Durham Region

It's still a Seller's Market, albeit cooling. 

With just over 2 months of inventory, it remains a seller's market.  Inventory increased in June and sales faltered down 15.8% in Durham from the prior month while pricing remained stable.

The Bank of Canada's June interest rate hike and the lack of inventory meeting buyer needs to this point have driven some buyers to the sidelines. 

Every city/town is unique as are the communities within them. Scroll through to find your town.

What's the Takeaway?

With inventory increasing and fewer buyers in the market the way a home is prepared, priced, and marketed is more important than in the last quarter. Inventory may have increased but it is still very low. Sellers who are prepared to attract buyers with the right listing strategy will come out on top.

Buyers who are qualified and prepared can take advantage of the slowing sales volume and increased inventory. Connect with experts like us to determine what your options are and how best to approach this market.

Could the market cool off?

Yes, in June we have already seen significant increases in new listings while sales have declined. While pricing has remained stable increasing interest rates impact affordability for buyers and that could continue to cool the market.  

The next big announcement from the Bank of Canada is set to take place in Septmeber, 2023. Follow us to see what happens with interest rates and how that will affect the real estate market. *** July 12th  Bank of Canada has raised its benchmark rate to 5%. This puts prime rate at 7.20%.***

As always follow us and reach out with any questions you have on this ever-evolving real estate market.

What's Happening in The Durham Region

It's still a Seller's Market

We continue to see homes sell for well over the list price in multiple offers. 

Our own listings and those of many of our colleagues at Sutton Group-Heritage Realty Inc. are seeing a ton of traffic and selling in multiples.

Every city/town is unique as are the communities within them. Scroll through to find your town.

What's the Takeaway?

Sellers can feel confident knowing there is a growing but limited pool of listings competing for a larger pool of buyers.

Buyers should be prepared when shopping and expect to compete for the home they want. It’s important to look at what comparable homes are selling for and view the list price of any property as a marketing tool rather than the asking price.

Could the market cool off?

On June 7th the Bank of Canada announced another increase to its policy rate by .25% This is the first increase since the bank indicated it would hold rates in January. While most speculators weren’t betting on further increases now that may be changing (CBC article).

The last time the bank increased rates it had a cooling effect on the market.

As always follow us and reach out with any questions you have on this ever-evolving real estate market.

What's Happening in The Durham region

It's still a Seller's Market

We are seeing more homes sell for over list price in multiple offers.

Every city/town is unique as are the communities within them. Scroll through to find your town.

What's the Takeaway?

 Sellers can feel confident knowing there is a growing but limited pool of listings competing for a larger pool of buyers.

Buyers can still find opportunities and while competition is heating up it's still not nearly what it was at the peak in 2022. 

With inflation increasing slightly it will be interesting to see if the Bank of Canada raises its key rate or holds steady in their next update on June 7th. 

Everyone is looking for a deal, but how do we know when we have found one?

In most cases, you won't realize how great a deal you have found until after you have made your purchase and the market goes up. That being said there are some clues to help you search out a good deal.

3 ways to find a deal

1. Look for days on the market. The longer the home has been on the market the more likely you are to get a deal.

2. Homes that don't show well online. Bad photos can cause people to skip over a listing making it less competitive in the market allowing you to score a deal.

3. Look for homes that need some work. Many buyers want move-in ready homes and if you're not afraid to put in a little elbow grease you may be able to find a great deal.

Even if you find a property that fulfills your needs and meets all 3 of the above criteria you still won’t know you got a deal until the dust settles and the market goes up.

What about price reductions?

Yes, a price reduction can indicate a seller is more motivated but not always. Often a price reduction is because the seller has realized the property is priced above market value and needs to come down to reflect what the market value is. 

Keep in mind: Price is a marketing strategy and sometimes homes can be priced intentionally above or often below market value. Price changes can reflect a change in a sellers marketing strategy and an attempt to get the right offer on their home.

The Bottom Line

The bottom line is this. Real Estate has been and continues to be a solid investment. Consider this, there was a market correction in 2017 and if you made a purchase in April 2017, by September that year you may have been thinking you made a mistake. Yet, within 3 years your investment was growing again and today you’ve easily made $200-$300k on your investment.

 Source: TRREB Home Price Index

Looking for answers?

We study homes and prices every day. Our family team will keep you informed and up to date on current market trends, allowing you to make informed decisions when buying and selling.  This is a partnership and our goal is to be with you every step of the way making the buying and selling process easy and enjoyable.

What's happening in the market in Durham Region?

It's still a Seller's Market

March is the 3rd consecutive month where detached homes, semis, and condos saw sold price increases for Durham as a whole.

Sales & New Listings are up in March and Days on the Market continue to decline in every market with the exception of Scugog.

Every city/town is unique as are the communities within them. Scroll through to find your town.

What's the Takeaway?

Sellers can feel confident knowing there is a growing but limited pool of listings competing for a larger pool of buyers.

Buyers can still find opportunities and while competition is heating up it's still not nearly what it was at the peak.

With interest rates holding and the market adjusting to the new normal. It will be interesting to see if more buyers enter the market and what impact that will have on the competition. More listings are hitting the market but it still doesn't seem to be keeping up with the demand.

1920x1048-Durham March 2023 by Brian Stanton

After a long snowing winter, the spring market is heating up

Last month we passed the one-year anniversary of the peak of housing prices and while the news may be preoccupied with the 17.9% year-over-year decline in GTA housing prices we’re more concerned with what buyers and sellers like you are working with today.

Has the housing market come full circle? One statistic is pointing to that conclusion.

Last month saw a typical increase in homes hitting the market from the previous month but inventory remains very low. We saw significantly fewer transactions as well in February but one statistic give us a clue that competition is heating up. Days on market are declining indicating buyers are getting more aggressive.

In fact, on the street, we’re seeing a significant increase in homes selling in multiple offers and average days on market dropping significantly something we’ll be keeping an eye on in the coming weeks.

Here are the stats for Markets Across the GTA in February 2023.

Durham February Market Watch Snapshot TRREB Data by Brian Stanton

Toronto & York Region February Market Watch Snapshot TRREB Data by Brian Stanton

Cobourg Port Hope February Market Watch Snapshot TRREB Data by Brian Stanton

THE BOTTOM LINE

FOR BUYERS: You can still make a conditional purchase and while competition is heating up in some markets for certain properties there lots of opportunities to find the home you want at good value. If you’re contemplating a buy and are on the sidelines there are a couple important first steps. Reach out and we can help you get the ball rolling.

FOR SELLERS: Now is a great time to sell your home. With more buyers entering the market and competition heating up you can benefit from the limited supply. You’ll want to consult with a realtor to determine how to make your move and how to best prepare your home so you get top dollar. Reach out to Jim and he'll help you get started 

Spring is the perfect time to start fresh and give your home a little extra TLC after the harsh winter weather. One area that can often be overlooked but should definitely not be forgotten is your deck. After months of being exposed to snow, ice, and freezing temperatures, your deck may be in need of a good cleaning to restore it to its former glory. Here are some tips for cleaning your deck at the beginning of spring.

1. Sweep and Remove Debris: Before you begin any deep cleaning, start by sweeping off any leaves, twigs, and other debris that may have accumulated over the winter. Use a broom or leaf blower to get rid of as much dirt and debris as possible.

2. Pre-Treat Stains: If you notice any stains or discoloration on your deck, it's best to treat them before you begin cleaning. There are a variety of deck cleaners and stain removers available at your local hardware store that can help to lift and remove stains.

3. Power Wash: A power washer is a great tool for cleaning a deck, but it's important to use it carefully to avoid damaging the wood. Start by using a low-pressure setting and gradually increase the pressure until you find the right level to clean your deck effectively without damaging it.

4. Apply Deck Cleaner: Once you've power washed your deck, apply a deck cleaner to help remove any remaining dirt and grime. You can use a scrub brush or a power washer with a rotating scrub brush attachment to work the cleaner into the wood.

5. Rinse and Dry: After you've applied the deck cleaner, rinse your deck thoroughly with a garden hose or power washer. Make sure to rinse away all of the cleaning solution and allow your deck to dry completely before applying any sealant or stain.

By following these simple steps, you can have your deck looking as good as new in no time. Regular cleaning and maintenance can help to extend the life of your deck and keep it looking beautiful for years to come.