Market Insights

Hi there,

As your local real estate brokerage, we strive to always provide valuable information as it relates to your largest investment. At the beginning of every month, we work to compile statistics relating to both Toronto proper and the larger GTHA region. Simply provide your contact information below, and we'll be sure to send our infographics your way every month until you tell us otherwise. Enjoy!


GTA-Market-Snapshot-September-2020
 
 
powered by Typeform 

 

MARKET UPDATE FOR THE WEEK ENDING SEPTEMBER 17TH, 2021

The August consumer price index (CPI) inflation rate was released this week and it’s up to 4.1%. The last time the rate was higher was in March, 2003 (4.2 per cent). Probably the biggest factor in this year’s inflation surge is simply the reality that consumer prices fell to unusual lows last year, and it’s against these low prices that we are measuring the current price environment.

 

But from a broader historical perspective, 4.1% is, comparatively, nothing. Inflation was north of 10% in the mid-1970s and again in the early 1980s. In the early 1990s, when the Bank of Canada formally adopted maintaining low and steady inflation as its primary monetary policy objective, inflation still hovered around 5%. But since the central bank set its inflation target at 2% in 1995 – using interest rates to help steer inflation toward that rate – inflation has averaged very close to that target.

 

map of area

 

 

 

Interest rates are considered the bigger weapon to slow inflation; but the bank has said that it doesn’t want to turn to rate hikes until the economy has returned to full capacity. The exact moment when interest rates start to rise will be determined by economic indicators such as employment bounce back and whether inflation goes down on its own, but the Bank of Canada is currently projecting it will hike rates next year. It will also inevitably be influenced by what the U.S. central bank does, simply because getting too far out of sync with U.S. rates affects the loonie and our exports.

 

Interest rates certainly have an impact on the price of houses. They had a strong upward effect on house prices as rates fell, and the opposite will almost certainly happen if interest rates begin to rise. In Canada's hottest markets, including Greater Vancouver and Toronto regional housing data released early this month showed little sign of cooling in August.

 

Bosley Real Estate Ltd. is a full-service boutique brokerage operating in Toronto, Muskoka, Niagara-on-the-Lake, Port Hope, Cambridge, and Thornbury Ontario since 1928. We have three centrally located offices in Toronto and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.

 

HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:

Latest threats of rising interest rates and high inflation may shift real estate outlook

“Popular outrage at the soaring price of Canadian housing has a fix that almost no one is talking about — certainly not those aspiring to be Canada's prime minister.”

Read More

Canadian home prices expected to be up 20% by end of the year

“Canadian home prices are on the rise with a near 20% projected increase by the end of December, according to the Canadian Real Estate Association’s (CREA) most recent report.”

Read More

 
map of area

Supplies! Bank of Canada Researchers Say Supply Alone Can’t Explain Home Prices

“Canadian housing supply plays a role in home price growth, but doesn’t explain all of it. The Bank of Canada (BoC) published a paper on Canadian Housing Supply Elasticities.

Learn More
map of area

Canada Faces A Huge Trade Worker Shortage, and It’s Going To Cost You More

A Young Canadians aren’t interested in joining the trades, and it’s a big problem. RBC Economics took a look at skilled workers, and the anticipated shortage.

Learn More
map of area

Guess what? House prices kept climbing in August

The Canadian Real Estate Association (CREA) says that Canada’s housing market has been floating between pre- and peak-pandemic levels during 2021’s final summer months,

Learn More