The real estate landscape in the GTA has seen a complex interplay of factors as buyers navigated the challenging environment of rising interest rates over the past 18 months. Buyers and homeowners are now faced with the question of how long these elevated rates will persist. The rise in long-term bond yields, indicating the belief that interest rates will remain at their current levels, has a direct impact on borrowing costs, including mortgages up for renewal. The Canadian real estate market is now adapting to a "higher-for-longer" interest rate environment, where historically low rates may no longer be the norm.
While property prices continue to rebound and the market remains resilient, the surge in available properties and the uncertainty surrounding interest rates have created a cautious environment for both prospective buyers and sellers. The market's response to central banks' announcements and the potential for future interest rate changes underscores its acute sensitivity to broader economic factors. Having the right real estate team with the experience, marketing systems and negotiating skills is more important than ever in this market. If you have any questions or would like to know what your home is worth in today's market, please don't hesitate to contact us.
In this month’s edition of our Real Estate Facts & Figures, we have put together the stats for September 2023 including the Royal LePage Market Update Report.