Many real estate markets in Canada appear to have steadied in November after finding their footing in October as better affordability and plenty of inventory prompted buyers to make a move.
Mr. Regan adds that the massive transfer of wealth from the baby boom generation to their adult kids continues to play a large role. Well-off boomers are helping younger family members to move up to larger houses or better locations. Cumulative Bank of Canada rate cuts and more available inventory have aided the market’s signs of life, he adds.
In Southern Ontario, cities such as Windsor, Niagara and Guelph remain subdued compared with the rest of the country, but the supply-and-demand balance has tightened to a more balanced state. To gauge affordability, the economists look at the mortgage payment on a benchmark home as a percentage of income. While seasonally adjusted home prices edged up in the third quarter from the second, that rise was offset by a decline in the interest rate for a five-year fixed term mortgage and an increase in median household income.
The purchaser was able to negotiate a sale price of $1.74-million after the property in Lorne Park was listed with an asking price of $1.85-million.Mr. Regan expects the market to remain warm in the remainder of 2024, but for sellers, he recommends waiting until 2025.