WELCOME TO THE ABTEAM MAY BLOG!

May usually ushers in the right weather conditions and aesthetic appeal – green grass, trees in bloom and pools open --for many Canadian home sellers and buyers to deem it the peak of the spring real
estate market. Most assuredly, it must be right? Well, contrary to this false but popular belief is the actual spring market activity, which this year, began the first week of January, and reached its zenith
sometime before the end of February, and has been trending lower ever since, unfortunately. It hasn’t necessarily shown up in the average sale price yet, which for March still showed an improvement over
February (albeit not anywhere near our optimistic projections). It is, however, showing up in the volume of sales – or lack thereof -- and that’s where it really counts. In fact, March’s sales numbers for the GTA
were so abysmal that they now hold the unenviable title of being the lowest on record since 2009. That’s a pretty sensational headline for the media to grab hold of. Despite increased inventory, booming
immigration and a Canada-wide housing shortage crisis, we can’t ignore the underwhelming performance of the GTA real estate market, despite our local market maintaining its own on a year-over-year
basis. That’s the good news story, and one we are hoping to maintain! Go Durham Region!

With the first quarter of the year now completed though, it’s time to assess what the 2024 real estate market may have in store for us.

With the Bank of Canada once again holding its position to not change the overnight rate – their 6th consecutive decision to do so – the concern is that buyers are starting to lose hope that any significant
change will happen in 2024. And we have to agree with them, as we don’t predict a substantial reduction in rates this year. The BOC’s ultra cautious strategy has many speculating on whether we will even see
a rate cut in June, when the next policy meeting is held. Our bet is that if we do, it will be incredibly modest. In the meantime, disheartened buyers are opting out of the melee, which bodes ill for the
multiple offer scenario that so many sellers have now come to expect when selling their homes.

Listing inventory levels will continue to swell, as almost 2.2 million mortgage borrowers will be renewing in 2024 and 2025, representing 45% of all outstanding mortgages in Canada. Many homeowners will be
selling because they can’t afford the higher interest rates at renewal. That means a lot more selection for those buyers still in the market. Price, condition and timing are going to take center stage in the next 3
quarters of 2024 and an equally creative and strategic roll out for any property entering the marketplace will be key if top dollar is the goal. And let’s face it, top dollar is always the goal for every seller! Overall,
we see a noteworthy shift in the market towards a balanced market on the horizon, lasting as long as it takes for the Bank of Canada to reach its target CPI of 2%, which they are expecting to achieve in 2025.

As conditions continue to evolve, we are committed to providing you with the most current information available and proving our value to you as your real estate advisors for life. As always, we are here to
educate and inform you, to ensure you know what forces are at play that can affect the precious asset you call home. If you would like a personal update, or if you know of someone who could benefit from
our knowledge and experience, please reach out to us. We are here to serve and welcome the chance to be worthy of your personal recommendation.

DATES TO REMEMBER:

May 15th - International Day of Families

May 16th - International Day of Light

May 20th - Victoria Day - Happy Long Weekend!

As always, we are sincerely grateful for the opportunity to serve your real estate needs, and those of your family and friends, neighbours and co-workers.  It is a constant thrill to receive personal recommendations from our clients, and we have been so fortunate to be able to build our business on our name and reputation – and it’s all thanks to you!