Affordability challenges and uncertainty persisted among GTA homebuyers last month, resulting in a decrease in total sales compared to October 2022. Despite this, selling prices continued to slightly exceed levels from the same period in the prior year.
There was a significant increase in new listings compared to the 12-year low observed in October 2022. However, the rise was more moderate when compared to the 10-year average for October. On a seasonally adjusted basis, new listings slightly decreased month-over-month compared to September.
Check out Alex's latest video as he breaks it all down.
Mortgage And Economic Report
From Sean Smith of Dominion Lending
Interest Rates:
On October 26th The Bank of Canada held the overnight rate at 5%, and bond yields have fallen over 13% from the peak.
Market expectations of rate cuts continue to change, currently the most aggressive forecast shows the first cut in March 2024.
Markets expect the Bank of Canada to cut interest rates by .25% four times by the end of 2024 (1% total).
The Bank of Canada says they can lower interest rates before inflation reaches the 2% target if the outlook warrants it.
Economics:
Falling interest rate forecasts result from slowing economic activity (GDP) and labour markets (Employment) and positive signs that interest rates are high enough to return inflation to target over time in Canada.
The economy has stagnated, showing 0% growth over two consecutive quarters. Canadian consumers are increasingly rolling back spending since Summer as more households renew into higher mortgage rates. BoC assumed that GDP would rise 0.8% in Q3.
Since September, crude prices have fallen sharply.
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