February 14, 2022
The residential real estate prices in Don Mills and the entire GTA are now going up even faster than a fast-moving train with no brakes! The lack of supply, the pent-up demand, low interest rates and the talk about interest rates going up soon, are some of the factors causing the frenzy. There are many investors that are starting to buy, especially in the condo market, which is also adding to the madness.
Sadly, I was not wrong before that, from the looks of things, it seems like the trend is going to continue into the next year. It will, for the rest of this year, regardless of the increase in the interest rates. Again, great for the sellers and sad for the buyers.
In the Don Mills neighbourhood, homes that have sold in November and December in the 1.4 million-and-up range, are now selling for $100,000 – $150,000 more. The lack of supply is the biggest culprit.
If and when the interest rates do increase, I don’t believe it will be by a big margin and I also don’t believe that it will result in a big enough dent to make a difference.
There are some potential buyers out there that are starting to give up and want to wait till the interest rates go up and the prices come down. That could backfire if the prices keep rising for some time. How high will the prices go before the rates go up? How much of a difference will the higher rates make? How much will the prices go down by? Will it be worth the wait? Will these buyers end up being even more left out of the market and regret having waited?
Toronto is a growing city, and with the easing up of restrictions, more and more people are going to be coming to Toronto. That is another reason why the small rise in interest rates may not make a difference.
I’ve been in the real estate business specializing in the Don Mills area for over 35 years and have seen several peaks and valleys. It’ll be a pleasure to guide you and share my knowledge and experience as to how to navigate through such ups and downs and the do’s and don’ts of this crazy market.
If you are considering buying or selling in the near future, please feel free to contact me for a confidential chat at no obligation to you whatsoever.
Broker of Record / Owner