I hope this message finds you well. As a realtor with a background in economics, I wanted to provide you all with an update on the current real estate market in the Greater Toronto Area (GTA).
In recent months, the real estate market in the GTA has been incredibly active. One of the main factors driving this surge was the significant drop in fixed mortgage rates. This decline was a result of the banking system challenges faced across North America, which caused Canadian and American bond yields to decrease.
Here is a link from March 2023 explaining what transpired in the last 2 months in the GTA and surrounding areas.
To better understand the relationship between bond yields and mortgage rates, you can refer to this helpful video:
However, I would like to bring to your attention that over the past four weeks, bond yields have started to rise again. Consequently, fixed mortgage rates have followed suit. It is important to note that pre-approvals obtained around four weeks ago will expire within the next eight weeks, as most pre-approvals are typically valid for 90-120 days.
Once this eight-week period has passed, we can anticipate a cooling down of the real estate market. The rise in fixed rates, along with the already higher variable rates, will likely contribute to this trend. While we may observe a seasonal rise in September and October, the market is expected to continue cooling down during the winter months, unless we receive positive news from the government regarding interest rates.
For those considering selling their homes or investments, the next eight weeks present a favourable opportunity to do so. On the other hand, if you are planning to buy, I would recommend holding off for at least eight weeks before actively searching.
Thank you for taking the time to read this detailed message. I hope the information provided has added value to your understanding of the current market situation. For more frequent updates, I encourage you to follow me on Facebook and Instagram.
Feel free to reach out to me if you have any questions or require further assistance. I can be contacted at 647-637-0506.
(647) 637 0506