February, 2023
Unique
As always, the answer to the question – Do I buy? Do I sell? is unique to you. Rarely is it simply market driven. Let’s discuss how your personal goals connect with your real estate goals. Below are some general observations.
Mortgage Rates Now –
As of February 7th, mortgage brokers are reporting that a few lenders have dropped their rates below 6%. They are showing confidence and trying to get ahead of other lenders. Will this confidence hold and become a trend?
Showings –
Broker Bay one of the main platforms for real estate data and activity is showing a dramatic increase in showings in January. Showings translate to sales. They also reveal demand and that is an indicator of the underpinnings of the market.
The Bank –
On February 7th Mr. Macklem reported rates will hold for now, and the efforts are succeeding – but inflation is still above 6%.
The War –
The war is no longer “the war in Ukraine” it is widely known as “the war” and with the increase in western arms heading across the Polish border, some are saying we are already in the third world war. Is this hyperbole? If not, what does this mean besides the horrific suffering that is unfolding?
February – Now
In Toronto, Buyers are still seeking homes – wanting to buy. The low volume of sales does not reflect the lack of demand. Some buyers are considering temporary rental options -choosing to wait a year or two. Many Sellers, who want to sell, are holding their properties “for another year”. However, it appears demand outstrips those on the fence, as in the last week of January we have seen more than a couple of fast aggressive sales, with competitive pre-emptive offers.
The Calming of Spirits –
Given world events and economies, from pandemic to war to the shifting earth, people are thinking less strategically about houses as an asset, and more about what they want in life and where they want to live it. It brings us back to where we began. The best decision is unique to you.