The November sales numbers show that prices and sales were up in November and with the Bank of Canada's most recent .50 rate drop on December 11, the market will likely heat up further in the coming months.
The BOC rate drop now has the overnight rate at 3.25% and the banks prime rate at 5.45%
What do these numbers mean to the average home owner? If you have a variable rate mortgage (VRM) and your monthly payments change with the rate fluctuations, your next mortgage payment will go down by approximately $28 per $100,000 of principle. If you have a VRM and your payments do not change based on the rate, then you will be paying more towards your principle owing each month.
If you have a fixed rate mortgage, this will not affect you until your mortgage comes up for renewal. For the many thousands of home owners with mortgages renewing in 2025, this is good news. Especially for those who have ultra low rates as a result of the covid years when the BOC slashed its rate to stimulate spending.
The average sale price in the GTA rose 2.6% year over year in November and now sits at $1,106,050 and sales were up a massive 40.1% year over year. These stats are for freehold properties, next week I will send an update for condo's, it will be interesting to see what happened there.
The total new listings are up 6.6 % and the average days on market is also up 25.6 %. These 2 numbers will help to keep the average sale price in check if they continue over the next few months. When we start to see new listings and days on market down, that's when we'll see prices start to jump. Low inventory is what causes the huge price jumps. Over all, I still think we'll continue to see a stable market, with both sales and prices in a healthy range. I don't believe we are headed into a overheated market for a few years.
In my opinion this is a healthy market, with buyers having a decent supply of inventory to choose from while still being able to add financing and inspection clauses.
Keep in mind that these numbers are GTA wide, so your neighbourhood may be quite different from what you see here. If you have questions about your unique mortgage situation or would like to get sales numbers for your neighbourhood, call me at 416-467-8627 and I will send that over to you.