Wow! The last 52 days saw more changes than in the previous 24 months! October marked a turning point for the GTA housing market as sales increased at their fastest pace since COVID, when interest rates were at record lows.

Ciao! Welcome to a new episode of Building Wealth Through Real Estate...Brick by Brick with me, Nico James-Bock, Founder of The CondoWiz™ Group and Broker at Royal LePage Signature Realty in Downtown Toronto.

While sales volumes remained below average last month, it won't be long before the market returns to a normal level of activity.

With inflation back below or around the target 2%, more rate cuts on the horizon, and more relaxed mortgage insurance rules coming into effect on Dec 15th (including an increase in maximum amortizations from 25-to 30-years and an increase in the price cap from $1.0 to $1.5M), the momentum seen in October is expected to continue.

The next several months may see a 'pop' in activity as buyers waiting on the sidelines over the last couple years jump back in.

Those waiting for further interest rate cuts should consider that the increase in demand underway will likely result in significantly higher prices in the coming months, thereby eliminating the benefit of any further rate decreases.

Following the results of the recent U.S. election, five-year Canada bond yields have risen off their October lows as financial markets expect tax cuts and new tariffs imposed south of the border will most likely lead to higher inflation.

As such, fixed rate mortgages (currently at about 4%) may already be at or near their bottom, while variable rate mortgages (currently just above 5%) are not projected to fall much below the 4% level according to the latest bank forecasts.

So ask yourself, when do YOU want to buy? Now when there is a lot of inventory (ie choice), reasonable prices, many incentives, and fewer buyers competing or in the spring/summer when inventory levels will be much lower, incentives will all but have disappeared, and pricing is higher?

Ciao Ciao 😊

Helping you increase wealth through #realestate

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