October, 2024
The Turkey is Fat
Happy Thanksgiving.
As you’ve heard. it was a quiet summer in real estate. In the summer months sales volume was as low as in the late 1990s. September saw an uptick. Those statistics will be available soon.
Is the pause over? It may be.
There was an increase in activity in September in showings, offers and sales. We’ve seen aggressive competitive bidding. Properties that sat on the market for weeks suddenly received multiple offers. Some properties sold with pandemic-style fever. Condo sales are favouring Buyers. All said, other properties are not moving and some houses are suffering reductions.
Mortgage brokers report they are busy setting up pre-approvals. However, they are also reporting many Buyers are not ready to go. They are waiting to see the rates come down. October 23rd is the next announcement date followed by another announcement on December 11th. There is speculation that both reductions could be by ½ point for a complete percentage by year end. We shall see.
New mortgage rules allow insured mortgage up to $1, 500,000 now, up from < 1 million. This is designed to help people with strong incomes but insufficient downpayments to get into the market. Will it help? It’s not clear. These insured mortgages will have high monthly payments.
What we should keep in mind is that among the pent-up demand of Buyers seeking mortgages there are also Buyers with abundant savings and downsizers who do not need a mortgage. If they can find what they want, and options are improving, they should act and make the purchase. At some point, probably soon, the bulk of Buyers will become active, and prices will climb.
The turkey is fat. If a turkey…that’s not ideal.