There was some drama in Toronto’s real estate market in September, but it didn’t have anything to do with what was bought or sold, it’s in the changes to mortgage rules that were announced to roll out in the coming months.

What we saw was normal market activity. We always see an uptick in September once people are back from summer vacations. And based on watching the market every day, I expected that both sales and listings would be up.

One change is that my phone is ringing a lot more. People are asking questions and being more engaged with the market. There’s still a somewhat low sense of urgency, but potential clients and long-standing ones too, are calling to talk about their plans for 2025 and asking about further rate decreases.

Many economists were predicting that the Bank of Canada would lower the key interest rate by another 50 basis points this month and as I write this now, the news hit all the channels. Will this be the last of the rate decreases? Chances are NO. There is talk of further future reductions as long as we’re able to keep inflation in and around the sweet spot of 2%.

So my advice to homeowners right now? Probably not a popular one in real estate circles but, unless consumers  really need to sell, I’m advising people to wait I think we’ll see a busy spring market. We’ll just have to see if the buyers will be ready to buy…

Having said that, I do think that now is a good time to buy: The average price in the 416 was down slightly from 2023, and by slightly, I mean less than one percent ($7,555). And despite so many condos being on the market at the time of writing this (7185), the average price for a condo was down by 3.5%, or just over $24,000.

You may wonder, why am I telling you about this? If you’re in the market to buy, especially a condo, you have an incredible amount of choice. Prices are actually lower than they were in 2022.

If you came here for a little drama, here it is:

In August, a rule change came into effect that allows first-time buyers purchasing new builds, (including condos) to qualify for 30-year mortgage amortizations.

The next round of changes comes into effect on December 15:

If your down payment is less than 20%, you need to have mortgage insurance. However, you can only get that insurance if your mortgage is under $1M. As of December 15th, the amount of mortgage you can insure increases to $1.5M to reflect how much prices have increased since 2012.

In theory, this is good news. It’s a move in the right direction to get people to transact in real estate. It will make homes that were less accessible more accessible – to those who can afford it.

Let’s crunch some numbers.

The minimum down payment for a $1.5M home would be $125,000.

(That’s 5% of first $500,000 plus 10% of the remaining amount)

This means that a home buyer could pick up a $1.5M home for just $125,000 down; if their income qualifies. Buyers also have to take into consideration land transfer taxes ($52,500 or $44,475 if they’re a first-time home buyer), which means the buyer has to come to the table with about $175,000, plus legal fees.

And that’s even before the carrying costs. When you’re buying a home, you have to take other expenses into consideration. Monthly, the mortgage on that property would be about $8000. Property taxes would be about $900 and the insurance would be about $50.

The carrying cost on that property would be about $9000 per month and that doesn’t include utilities or regular maintenance.

In order for this to have an impact, there would have to be a large number of buyers out there grossing at least $250K annually and currently unable to save enough for a down payment. I don’t think this is as risky as it sounds - CMHC has pretty strict requirements for approval.

Other new rules will be rolling out over the coming months, including the ability to refinance to help cover the cost of building secondary suites.

Another change coming in December, all first-time buyers and all buyers of new builds will be eligible for 30 year amortizations, lowering the monthly payment.

The next change will come into effect on January 15, 2025, when homeowners will be able to refinance their insured mortgages to access the equity in their homes and help pay for the construction of a secondary suite, such as basement rental apartments, in-law suites, and laneway homes.

As always, your best resources are a good mortgage broker and a good realtor. If you have any questions about how you can take advantage of these new rules, please get in touch.

Fall is in full swing and it’s time to embrace the vibrant season with some can't-miss local events.

The Toronto International Dance Festival is returning to the city. Experience Toronto’s diverse cultural landscape through the art of dance at this 3 day event. If you’re also looking for the best spots to grab some healthy ingredients and meals, check out the top health food spots in the city.

The market news is in and, you're not wrong, you did see a lot more for sale signs last month. Over 7,000 new listings hit the MLS last month, an increase of almost 500 more than last September. The good news is that sales were up as well. Even though the difference isn't dramatic, it's still a good indicator that buyers are gaining more confidence in the market.

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If you’re noticing a lot of For Sale signs in your neighbourhood, you’re not alone. No matter how slow the market appears to be, there are always new homes hitting the market in the fall, and this month is no exception. However, it’s SOLD signs that are actual indicator of whether the market is getting busier.

You may not be keeping track the way I as a Realtor does, but not all of the ‘new’ listings are actually new. Many properties were for sale over the summer and, when the buyers didn’t materialize, some listings were terminated and then those home were re-listed. Pick almost any street with past listing inventory, homes were taken off the market in August and re-listed since the day after Labour Day.

Currently, there are slightly more than 10,000 residential properties up for sale in Toronto. (Ranging from $250,000 for a one bedroom condo at Jane and Finch to $34,918,778, for the penthouse at 1 Bloor Street West.) How many of those are new? It’s a tough stat to follow. Realtors are able to track the listing history of an individual property but the practice of re-listing makes it hard to analyze the statistics as a whole segment of the market.

What the numbers can tell us is that there is a lot of inventory available compared to the number of properties that are selling. In August, in the City Toronto (not GTA), 4,177 new listings were entered in the system which meant there were 8625 available properties for sale. There were only 1,718 properties sold meaning only 19.9% of the properties listed actually sold.

As you’ve probably heard, the other news is that the Bank of Canada lowered the key interest rate for the third time in a row. Will this have a major impact on the market? I don’t think it’ll be MAJOR but it’s a step in the right direction. It’s still not enough to bring investors back in droves, which was a large part of what was driving the large part of the condo market and in small part single-family homes. Every decrease helps though and once we start to see a level of stability with the rates, it will create more confidence in the market and that’s when we’ll see marked increase in sales.

Of course, any decrease will really help buyers that really needs to buy. It makes buying a home that much more affordable. For buyers who are stretching their budget, every dollar counts.

Quite honestly, my guess is that it’s too soon to say this is the new bottom of the market. I think it’s still wise to take more of a conservative approach and anticipate another rate decrease… or three. The only exception would be if you’re looking for a particular kind of property, and the opportunity presents itself, it’s a good time to make a move because that opportunity may never cross your path again.

Sellers are still holding firm to what they believe the value of their home is, but if they’re serious about selling, they may be more flexible on price if and when they get an offer. Right now, it’s still not uncommon to see some major negotiating happening.

Here's what I will predict for the next few months:

• Many buyers will continue to take a wait and see attitude. They’re waiting for rates to go down further and it won’t be until rates are stable that we’ll see more activity in the market. Consumers will then accept that this is what the market is, rather than waiting to see what it will become.

• It won’t be until interest rates are under 4% that we’ll see any level of excitement coming back into the market, if at all.

• We’re going to continue to see a further uptick of listings hit the market. A lot of sellers are thinking they’ll get more money now that interest rates are a quarter point lower but, because there’s such a glut of product available, there’s possibly going to be downward pressure on prices since there is so much more product for buyers to choose from.

Toronto’s real estate market is constantly changing – if you’re curious about what’s happening in your neighbourhood, get in touch!

Did you know that pet ownership in Toronto skyrocketed by 18% during the pandemic? That's right, according to narrativresearch.ca, more and more people in the city welcomed furry friends into their homes. While our pets bring us joy, not everyone is as enthusiastic about them as we are. With so many animals and people in close quarters, it's crucial to have rules in place to keep the peace.

Looking for a new home for you and your beloved pet? You need to know the rules! Watch out for buildings that don’t allow pets at all. These are often older buildings from the 1980s when pet ownership wasn’t as common.

Most Toronto condo buildings are pet-friendly, but they come with some restrictions. Cats and dogs are usually welcome, but exotic pets might not make the cut. Some condos also have weight limits for dogs—many new buildings require you to be able to carry your pet through common areas to avoid any accidents. And, of course, your pet must always be leashed.

How much have things changed? Some new buildings go above and beyond. The Merchandise Lofts feature a rooftop dog run, X condos offer a green space for dogs, 76 Shuter has a dog bath area, and Fabrik at Richmond and Spadina even boasts a pet spa. Plus, three buildings in CityPlace share a large dog run.

The building's pet rules are available in the status certificate and condominium documentation. Although you might not see this info until you make an offer, your friendly neighborhood realtor should be able to help you find the details.

Even if you follow all the rules, if your pets are barking when you’re not home or aggressive in common areas, the condo board has the right to ask you to remove them. I know one woman who had to move because her two boisterous dogs generated too many complaints. While it's rare, it can happen. Everyone has a right to quiet enjoyment—so if you have a yappy dog, expect some complaints.

Living in a Toronto condo with your pet can be a fantastic experience, but knowing the rules and choosing the right building are key to a happy home for everyone!

I know it's hard to fathom but, yes, we’re already in August! Even though the summer months seem to have flown by, there is still plenty of time left to enjoy the warm weather and all the exciting events happening in the city.

With so many cultural festivals this month, it’s hard to pick the best one. For a full list, click here. If you’re looking for an event with tons of tasty cuisine, The Toronto Korean Fest is definitely a top pick. And, after indulging in those savoury delights, be sure to follow it up with a sweet treat at one of city’s top spots to get a delicious cinnamon bun.

On the real estate front, there was some promising news from the Bank of Canada in July - the key interest rate dropped by .25%, bringing the prime rate to 4.5%. This may not significantly impact the slower August market, but coupled with a potential rate drop in September, it could fuel the fall market in a very positive way.

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The Bank of Canada recently announced the second interest rate reduction in a row! In my opinion, it’s a step in the right direction, and not to be a naysayer, but I don’t believe it will have much of an impact. For homeowners with variable mortgages, the difference is negligible, and the change doesn’t really affect those with fixed mortgages.

The main problem for the condo market is that Toronto’s rental market is not as strong as it was. So, when rent won’t cover the carrying costs, it’s not an attractive purchase for most investors. Considering the majority of available properties are smaller studio or one bedroom apartments, without investors, sales will continue to be low.

I was optimistic and hoping for a .5% reduction. But even if that had happened, we’re in the dead of summer and inventory remains high. How high is it, you may ask? Realtor.ca currently lists over 7,000 condo units available in Toronto and over 2,700 houses. For example, in areas like the MLS district of C01 (Yonge to Dufferin, Bloor to the lake) and C08 (Yonge to the DVP, Bloor to the lake, there were 2595 condos listed for sale and 352 sales in July alone. That means that only 13.5% of the condo listed for sale were selling.

Interestingly, prices aren’t dropping. Year-over-year, condo prices were down by .9% in July, which is less than $8,000. Those who bought in 2020 and 2021 obviously don’t want to lose money on their property if they were to sell now. In some areas prices have dropped significantly since then; thankfully not in most areas though. According to this Toronto Star article, prices are down by an average of $60,000.

My opinion? I don’t think the market will rebound until people get used to the fact that interest rates will never be as low as they were during the pandemic.

When we hit the sweet spot of interest rates being at 4% or lower and when buyers accept the reality this may just be as good as it gets for a while, we’ll see some action in the market and eventually, we’ll start to see prices go up again

I know some realtors are trying to scare people into thinking that if they don’t buy now, they’re going to lose out. But with the amount of inventory on the market, many sellers don’t have a lot of leverage. The harsh reality is that buyers are in the driver’s seat; unless of course you are selling a very unique, exceptionally appointed home in a highly desirable neighbourhood. Those homes will always fly off the shelves regardless of the market.

The other factor here is that even though inflation is being kept in check, people are being conscious about their spending habits. In addition to increased mortgage payments, we’re all looking at higher prices for groceries, gas, and utilities.

My advice for potential sellers is to be realistic in terms of what’s happening in the market. Some sellers are of a mindset to list their property to see what happens, which is something I recommend against. An up-market where there are motivated buyers is the market in which to test the waters, not this one.

By “just trying” to see what happens, sellers who don’t need to sell are flooding the market with listings. This will make it more likely that people who have to sell will reduce their price. If your neighbour is forced to sell their home at a lower price, that’s the comparable you’ll be facing when you list your home again.

Keep in mind, in markets like we’re in, there are always opportunities for qualified buyers. Some sellers really need to sell, so there can be room for negotiation. If interest rates scare you, one thing to consider is starting with a variable rate mortgage with the knowledge (or at least hope) that rates will continue to go down, then in many cases (check with your mortgage broker) you may be able to lock into a fixed rate when you feel that rates are as low as they’re going to go.

You know I love to talk real estate, so if you have any questions, please get in touch!

I’m going to make a bold statement: just because you own a car doesn’t mean you have to buy a house with parking. In fact, you may end up saving money by buying a property without a parking spot.

At one point in time, I said I would never buy a house that didn’t have parking, but that’s exactly what I ended up doing, and for the time that I owned the house, finding parking wasn’t ever a problem - and it was smack dab in the middle of downtown.

It’s pretty common to find homes in the older part of Toronto being sold without dedicated parking because the homes were built before cars were ever a consideration. For many years, homeowners solved the problem by converting their lawns into front pad parking. The problem is that front pad parking comes with drainage issues, aesthetic problems (they’re ugly) and the fact that every new parking pad effectively removes at least one street parking spot.

There is currently a moratorium on new parking pads in the old city of Toronto. Homeowners outside the city can apply for permission to build a parking pad, but it often takes years.

Fun fact: You may buy a home with a licensed front parking pad, but the license does not follow the property. You’ll have to apply to have the license agreement transferred.

There are obvious benefits to having a parking spot, including not having to circle the block, hunting for a spot. As well, people feel it’s safer to park their car right by their house, but let’s be honest, if someone’s going to break into your car or steal it, a few steps either way isn’t going to deter them. Many years ago, I owned a house in prime Cabbagetown that had laneway access to parking and the car was broken into four times – so having a parking spot is no guarantee that your vehicle is safe!

How can buying a home or condo without parking save you money? Keeping in mind that most people own their homes or condos for 3-7 years; paying monthly for a parking spot is going to cost you far less than the actual cost of buying a parking space or the price differential between homes with or without parking. While it’s true that having a dedicated parking spot or two can add re-sale value and that having a house without parking can limit the people who will even come to see your house, it’s going to cost you more upfront, if not also in the long run.

According to MPAC, a house with a parking spot is valued at about 3% more than a home without one. And a condo will cost between $40K and $100K more with a parking spot, depending on the building and your neighbourhood. If your budget is stretched, are you going to get more use out of additional space or some pavement? In addition to the money for the parking spot in a condo building, your maintenance fees are also going to be higher, as much as $80-100 per month on average.

Street parking is available almost everywhere in the city and it’s only $300/yr, including HST. If you’re considering buying a home without parking, you should check with the city to make sure there isn’t a waiting list for that street. In that case, it’s possible to get a temporary permit for surrounding streets in your neighbourhood.

Many condos are being built with reduced amounts of parking. In fact, some new developments have no parking at all! Reducing the number of parking spots being built increases the cost per spot as the builders still have to dig – and the cost is spread out amongst fewer spots, making them more expensive.

The reality is that buying a property without a parking spot is less expensive in the long run and you can end up with extra money in your pocket when all is said and done. If you don’t own a car, it’s an easy decision. If you do own a car, you have to figure out your priorities and whether the convenience is worth it to you.

The main exception is if you’re buying a condo as an investment – condos with parking command higher rents and if the tenant doesn’t want the spot, you can rent it out for $100-$200 per month, maybe even more.

If you have any questions about the pros and cons about parking spots, please get in touch!

According to the most recent sales statistics from May, the listings to date for this year have been coming fast and furious. Considering the amount of choice available, there really isn’t a better time to be a buyer, if you’ve got the funding. There were 47% more listings available this April 2024 than there were last April and and in May that number was up another 21% year over year. Add to the mix that The Bank of Canada began decreasing the prime rate by ¼ point and that there are fewer buyers out there looking, it’s an excellent time to jump into the market.

Chances are, when the Bank of Canada lowers interest rates further as they are predicting, there is going to be a crush of buyers out there, and prices are only going to go higher.

Where are the buyers right now? I think it’s a bit of a mob mentality; people think ‘if nobody else is buying, why should I?’. The same thing happens sometimes with properties. A house can languish on the market for weeks without an offer, leaving buyers wondering what’s wrong with the house. But then someone makes an offer and all of a sudden, a second offer comes along.

Now that the numbers have come in for May, it’s no surprise that numbers were even more dramatic than they were in April – more listings and fewer buyers. The good news for sellers is that prices have remained fairly steady.

Sellers these days need to be a little patient. According to TRREB, the average number of days a property is on the market (YTD) is 24, which is high when you realize that it used to be under two weeks. However, the real number sellers should be aware of is Property Days on Market (PDOM), which is 35. What’s the difference? Realtors will often re-list a property at a different price so that it seems new and fresh, but the PDOM is a more accurate representation of how many days the property has been on the market.

That said, not everything is actually selling. In C08, only 20% of the listings were selling, which seems pretty low. There are more houses selling compared to condos, but it’s still quite low.

My advice: If you need the funds from a sale of a property to close on a new property (and most people do!) right now, you should absolutely be selling first. Because there’s so much inventory, if you sell your place and give yourself a 60-90 day closing, you should be able to find something you love within that period of time.

Where are prices headed? Not surprisingly, when the market stats were published at the beginning of June, there is a slight decline in the prices of most housing types, including condos. There’s still some downward pressure from increasing inventory and decreased buyer activity. A lot of new listings are one bedroom condos, and investors are concerned that the rent they’ll be getting will not be enough, or a mortgage renegotiation won’t be affordable. With the increase in available properties for sale and some seller’s timelines, there is definitely opportunity to negotiate a very attractive sale price.

My latest is an unusual home on St. Clarens. There’s an interesting story related to this home. I actually helped the seller buy the empty lot in 2014. Although the zoning only allowed for a width of eight feet, this was perfect, because his plan was to build a home with shipping containers, which are exactly eight feet wide! You can have a look here.