March 9, 2024  |  Vol. 20

*Join Us Wednesday, March 13 at 7 pm IG LIVE  & Zoom Market Update and Q&A*

** Follow @MoRealtyTeam for daily market updates**

Home Tip Checklist

With warm weather comes snow melting, and this is the perfect time to check for the following;

A/C Cover: Reminder to remove your A/C cover and clean any debris on it. If the unit is dusty spray it with hose water to keep the fins on the side clean to work optimally. 

Inspect Garden: Check for any winter damage to plants, structures, or pathways. Trim back any damaged or dead branches, and start pruning those plants for a healthy garden.

Gutters: Ensure all the gutters are free of debris, intact and water is coming down the spout and away from the house (ideally 10ft away).

Family Friendly Event

Timeless Toronto: A Visual Journey Through the 6ix Art Exhibition   - FREE

February Market Glance 

Charts Explained

In February 2024, there were 5,607 home sales in the Greater Toronto Area (GTA), marking a 17.9 percent increase compared to February 2023. Even after factoring in the leap-year effect, sales still showed a significant rise of 12.3 percent year-over-year. New listings saw an even greater annual increase than sales, indicating a rise in options for prospective buyers. However, on a seasonally adjusted month-over-month basis, February sales dipped slightly following two consecutive monthly increases, while new listings remained unchanged. It's important to note that monthly figures can exhibit volatility, especially as the market approaches a transitional phase.

Home selling prices closely mirrored those of February 2023. The Home Price Index (HPI) Composite benchmark showed a slight increase of 0.4 percent. Meanwhile, the average selling price, totalling $1,108,720, saw a modest uptick of 1.1 percent. On a seasonally adjusted monthly basis, both the HPI Composite and the average selling price showed marginal increases.

Rental market is starting to cool a bit, this is in part due to seasonal slow down, and also immigration policy which recently reduced the number of immigrants coming to Canada. The policy was especially aggressive on international students and private colleges, making it tougher to come into the country. This will slow demand in the rental market but may not be enough to bring the housing shortage to a balance. We anticipate that this slowdown is temporary and expect the spring market to help pick things up in the rental market. 

*Join us Wednesday, March 13th at 7 pm IG LIVE  & Zoom Market Update and Q&A*

** Follow @MoRealtyTeam  for daily market updates**

Market Rates

Mortgage Rates as of March 8, 2024:

Economic Update
               
Fixed rates are already trending down and variable rates will soon follow. Some report as early as June of 2024 we may see the Bank of Canada start bringing rates down. Expect a modest level down of 0.5 to 1% total for 2024. Inflation did trend down again to 2.9% from the peak of 8.1%, which is why we saw a rate hold from the Bank of Canada on March 6th. The rise in rates has slowed growth in the economy and prolonged high rates will have a negative toll on the economy, BOC knows this and plans on reducing rates once inflation has been tamed. With that in mind, we recommend not to budget with rate drops in mind and to stay on top of personal finances. 

                     The Next Bank of Canada Rate Announcement is April 10th, 2024.

A 2023 trend of excessive credit card spending and lower savings is bringing warning signs to the economy. We want to encourage you to stay alert on your expenses strongly, budget for high costs of living, and keep reading the MoRealtyTeam monthly newsletter to stay informed ;)

BUYER STRATEGY WITH CURRENT HIGH RATES:

• Get pre-approved early, go for a short-term fixed-rate (1 or 2 years) as rates may not stay high for long, or variable with static payments 
• Buy well within your limits (i.e. if you're approved for $900K, buy at 750K to 800K)

Consider houses with separate entrance basements (can rent 1-bedroom basements for over $1900+/m)