Navigating the Simcoe County Housing Market: Insights and Predictions

Are you keeping an eye on the Simcoe County housing market? There have been some interesting developments that could impact your decisions about buying or selling a home. Let's dive into the latest trends and predictions.

The Changing Landscape

In recent times, the Canadian housing market has experienced a shift, largely influenced by the Bank of Canada's (BOC) rate adjustments. Starting from a low of 0.25%, the BOC embarked on a rate increase journey, reaching as high as 5.00%. This rate rampage had its effects, with home sales volume trending down to their lowest in years in the fall of 2023.

However, there's a twist in the tale. Towards the end of 2023, the Toronto-area market started to awaken from its slumber. Home resales surged by an impressive 21% in December, according to a report by RBC ( Royal Bank Of Canada ).

Rate Predictions

RBC's report also came with some intriguing rate predictions. By the end of this year, they anticipate the BOC rate to decrease from 5% to 4%. Looking ahead to 2025, the projection is even more significant, with the rate potentially dropping into 3% range.. 

Historically, as interest rates drop, house prices tend to increase. Read that again. waiting for a rate drop and prices to be low is like waiting for gas prices to drop below a dollar per litre.  Is that even going to happen, ever?

The 'Price vs. Rate' Conundrum

In the real estate industry, there's a saying: "You Marry the Price, but you Date the Rate." In simpler terms, property prices remain constant, but interest rates fluctuate over time.

For those considering the current market, this suggests that the Greater Toronto Area (GTA) may have hit its price bottom and this may remain true for other areas like Simcoe County. While interest rates aren't as attractive as they were a few years ago, they are expected to decrease.

Time to Make a Move?

Now might be the opportune moment to 'marry' a purchase price and 'date' an interest rate that allows you to adapt as rates continue to drop. Recent weeks have seen many clients making precisely this decision. Even in the midst of frigid temperatures, properties that lingered on the market for weeks or months are now attracting multiple offers. In some instances we are seeing 20 - 30 offers on homes in the GTA that weren’t selling in the fall.

The sentiment among Canadian consumers is shifting towards optimism, making this an interesting time to explore real estate opportunities.

Stay tuned for more insights into the housing market. If you're contemplating a move, it's essential to stay informed and start the conversation with your Realtor early.

Reach out to us and set up a discovery call to see how we can help you with your questions and prepare for your move.  Book a call today: