Real Estate Market Update

November 2017 Real Estate Market Update: Simcoe County, Southern Georgian Bay & Toronto

Navigating through the ever-changing real estate market can be tricky, but we’re here to help! Read on to find out what’s happening in real estate this month. 

Contrary to popular opinion, having your home listed at this time of year gives it one of the best chances at selling faster and for more money. When the masses take their homes off the market and re-list in the new year, the market gets flooded with inventory. This drives prices down and days on market up. People buy homes every day and people looking to purchase a home during the holidays NEED to buy. They are serious buyers. In summary, with less competition on the market, NOW is a great time to be listed for sale!

We are continuing to experience more of a balanced or buyer’s market in Simcoe County and throughout Ontario (depending on your local area) this November. The biggest news to affect our real estate market is the announcement of the Stress Test for mortgage approval last month. This test already affects buyers with less than 20% down, but starting on January 1st, 2018, all buyers (regardless of the size of their down payment) will have to pass the Stress Test. It is estimated that this will decrease a buyer’s purchasing power by about 15-20%. This means that if you were approved for a mortgage of $600,000 this year, in January under the new mortgage rules, you may only be approved for a mortgage of $475,000.

WHAT’S HAPPENING IN THE BARRIE REAL ESTATE MARKET?

In October, the Barrie Real Estate Board saw 378 home sales and purchases. This is down 21.4% from the highs witnessed last October. We also saw a marked improvement from the low level of sales reached in August. The inventory of homes for sale is still well below the long-run average for this time of year.

“While home sales in the region are still well off last year’s record levels, they have been recovering over the last two months, quite sharply in fact,” said the President of the Barrie and District Association of REALTORS®. “With 378 sales in October, activity has returned to average levels for the month, in keeping with the five-year average of 410 and the 10-year average of 369.”

WHAT’S HAPPENING IN THE SOUTHERN GEORGIAN BAY REAL ESTATE MARKET?

In October, Southern Georgian Bay home sales and purchases numbered 266. This is down 19.4% from the record set in October 2016. The inventory of homes for sale, while up from this time last year, is still well below the long-run average for this of year.

“Following the trend seen in the Western District in September, October saw sales in the Eastern District also start to move higher again, although activity across the region remains well below last year’s record levels,” said the President of the Southern Georgian Bay Association of REALTORS®. “Even so, with inventories still running near all-time lows, the market is still very tight and prices remain well below last year’s record levels.”

[Eastern Region – Midland, Penetanguishene, Tay, Tiny, and Georgian Bay Township; Western Region – Wasaga Beach, Clearview, Collingwood, The Blue Mountains, Meaford and Grey Highlands]

WHAT’S HAPPENING IN THE TORONTO REAL ESTATE MARKET?

The Toronto Real Estate Board reported 7,118 sales and purchases in October. This is down 26.7% from October 2016, but up 12% from the lows seen in September.

“Every year we generally see a jump in sales between September and October. However, this year that increase was more pronounced than usual compared to the previous ten years. So, while the number of transactions was still down relative to last year’s record pace, it certainly does appear that sales momentum is picking up,” said the Toronto Real Estate Board President. “The housing market in the GTA has been impacted by a number of policy changes at the provincial and federal levels. Similar to the track followed in the Greater Vancouver Area, it appears that the psychological impact of the Fair Housing Plan, including the tax on foreign buyers, is starting to unwind,” said TREB’s Director of Market Analysis.

If you look at the chart below, you will see that prices in most areas are down from the highs of March 2017.The average price for homes sold via the Barrie and District’s MLS® System, The Toronto Real Estate Board and The Southern Georgian Bay Association of REALTORS® in October are:  

November Real Estate Market Update Stats

November Real Estate Market Update Stats

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wondering what homes in your neighbourhood are selling for? Talk to one of our knowledgeable team members, book a free, no-obligation home evaluation or a free buyer consultation. The Peggy Hill Team: Real People. Real Service. Real Results.

Interested in reading more about the real estate market? Visit the Canadian Real Estate Association Statistics page.