Etobicoke real estate market.

The big news in the Etobicoke real estate market is that Buyers appear to be coming back! In October, more Buyers decided that the time was right to purchase. After leveling out over the summer, the number of detached homes sold saw a spiked increase of 20% in October, compared to the previous month. The number of condos sold increased too. Here are more details about what we saw in October:

Detached Homes:

  • Prices up 3% since September 2017
  • Prices down 11% since April 2017 highs
  • Number of homes sold up 20% since September 2017

Condos:

  • Prices down 1% since September 2017
  • Prices just slightly off the record highs that we saw one month ago
  • Number of condos sold up 14% since Sept 2017

The charts below give you an overview of how the sales prices and volumes have been trending over the past year:

Average Sales Price of Homes and Condos

October 2016 – October 2017

Sales Volume of Homes and Condos Sold

October 2016 – October 2017

What Do the Numbers Mean?

So what exactly is causing this shift? It could well be the case that the new mortgage rules coming into effect at the beginning of next year are having an impact. After all, the rule changes taking place on January 1st mean that the buying power or purchasers is going to decrease. For many, the price of a home or condo that they can afford will drop in January by approximately 18-20%.

Buyers are figuring out that it may make sense to get in now. Prices are off their highs, buying power is still high, and mortgage rates are still relatively low. This would explain why the number of houses and the number of condos sold are both up significantly from one month prior.

So what’s next? While it’s impossible to predict the market, it’s very possible we may see this trend continue, at least until the rules come into effect. Of course, some lenders are already getting stricter in anticipation of the changes, so we may see a cool-off even earlier than the New Year.

As always, due to the inherent volatility in the Etobicoke real estate market, we advise both Buyers and Sellers to avoid trying to “time the market.” Instead, buy or sell when the time is right for you.

If you’re thinking of buying or selling, we’re here to help. Get in touch with us today!

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