The recent interest rate cut has been a hot topic but it wasn’t exactly a surprise.
Does that mean its great news for the market? Well... yes and no. It could help people looking at variable-rate mortgages, making those options a little more affordable. But the banks haven’t moved their fixed rates much yet (they depend on the bond markets, which are a whole other story), so I wouldn’t expect a dramatic shift in affordability right away.
We’re seeing some interesting trends right now. Single-family homes are still selling over asking — and often well-over asking — while the condo market has been quieter. In fact, the number of condo sales in the 416 area are down 17%.
That said, there’s a silver lining: the average condo price actually rose slightly in February, up about 5% from January, though that’s likely due to larger condos being sold to end users rather than investors buying one bedroom units. So, that means more expensive properties are the ones currently selling, hence the average price increase.
On average, condos in downtown’s C08 and C01 districts are selling for about 97% of asking. While that’s a slight dip, it’s also a sign that savvy buyers are finding value — and sellers who are patient are still getting solid offers.
For sellers, patience is key. Showings have slowed down, and with plenty of inventory out there, buyers are feeling confident enough to make bold initial low offers. But don’t worry — there are buyers out there, and properties are still selling. And keep in mind, just because the initial offer submission is low, it doesn’t mean buyers are willing to go up when it comes to securing the property they love.
Historically, we tend to see the market pick up after March Break when the weather improves and families start planning moves to align with the school year. While condos are less tied to that cycle, the same seasonal patterns do still apply.
If you’re thinking about buying or selling, this is a great time to prepare. Buyers can take advantage of motivated sellers, and sellers, who position their properties well, can still attract strong offers.
Curious about what this means for your situation? Let’s chat! Reach out today, and we can create a strategy that works for you.
