A new report shows that homes in the province are being sold in half the time it took at the beginning of 2023
The time that it takes for a residential property in Ontario to get sold is now roughly twice as fast as it was around half a year ago, according to a new analysis by Zoocasa.
Back in January, the shortest amount of time that homes were on the market was 25 days in Waterloo. However, as of July, homes were being sold the quickest in Ajax and London, with just 11 days on market. Zoocasa noted that this represented a massive decrease of 56% in just six months’ time.
“In fact, there are only two cities where properties are spending more than 25 days on market: Caledon and Niagara Falls, where homes are on the market for an average of 31 days,” Zoocasa said. “This is nearly half the highest number of days on market in January, where homes in Caledon and Orangeville were listed for an average of 60 days.”
Robust sales performance for newly built homes across the Greater Toronto Area might end up getting threatened by BOC's most recent rate hikes, according to the Building Industry and Land Development Association.https://t.co/nKPJitxEHf#mortgagenewsw #ratehike #homesales
— Canadian Mortgage Professional Magazine (@CMPmagazine) July 3, 2023
The surge mainly stemmed from the temporary stop in the Bank of Canada’s rate-hike campaign in spring, Zoocasa said.
“Interest rate hikes had paused until June, giving buyers encouragement to step into a more certain market,” Zoocasa explained. “Last year when interest rates were increasing rapidly, many buyers took to the sidelines to wait out the market until they had some clarity on its direction. This spring, many sideline buyers finally felt they had waited long enough.”
Perennial supply issues across the province also compelled initially hesitant home buyers to finally make their purchases.
“What little supply is available has great competition, so buyers are having to move a little quicker to snap up their ideal home,” Zoocasa said. “The impact of the heightened demand and lacking inventory is clear when you look at how much quicker homes are selling now as opposed to the start of the year, as well as at the steady climb of home prices.”
