The September real estate market jumped slightly, compared to August. The summer real estate slump that came after prices highs in April appears to have ended.
The average home price increased 5.9% from August and is 2.9% higher than this time last year. However, September’s average price is 15.8% lower than the price peak in April.
The increase in prices occurred mostly within Toronto’s boundaries, while prices in the 905 surrounding the city hovered a bit higher than August’s prices at less than 1%.
The housing correction is could be over according to economists, which is good news for sellers. The 4 or 5-month lull in sales and price growth was quite a minor correction compared to the doomsday scenarios predicted by some analysts.
The buyer frenzy seems to have subsided as sales have not rebounded to the same levels. This is a good thing. The market is now operating at a more reasonable and sustainable level. Total sales are currently very close to the 10-year average. These long-term stats are key for understanding the overall status of the market.
The Office of the Superintendent of Financial Institutions (OFSI) will likely announced new mortgage regulations soon. These new regulations will likely cool the market more as well.