Market Snapshot:

The numbers are in for the Toronto housing market and to nobody’s surprise, fewer properties sold than last August and the average price for all housing types were also down. As a rule, August is almost always one of the slowest months of the year so this isn’t groundbreaking news. I was hoping that there might be a turnaround in September, but unfortunately, much of the market is still feeling sluggish.

Echoes of the late ‘80s??

I don’t think we’re anywhere close to that yet but, depending on the housing type, it might feel that way to some. Way back then, there was an overall malaise to the market in general. Interest rates hovered at about 10% (unfathomable now!) and inventory levels were very high. The average days on market soared and nothing was selling, so sellers were dropping their prices like a rock. We’re not there in our overall market, but the sense of uncertainty and the wait and see attitude from buyers is familiar, especially in the condo market. 

Why is this happening?

The media has been reporting a slight increase in mortgage defaults, but I believe (and this is backed by CTV) that some are secondary and investment properties. I imagine that investors are the ones defaulting because it’s difficult to rent an investment property where the rent covers today’s rates and price points, and they are having trouble selling their units because there’s so much inventory. People that live in their homes have a higher incentive to keep paying their mortgage as best they can. Investors are more likely to walk away and take the loss if pushed to that point.

Everyday expenses - groceries, utilities, gas - are eating into budgets. Even if people qualify for a mortgage, many feel stretched and hesitant to take on more debt.

When the news is full of economic warnings, international conflicts, and shifting government policies, it’s no wonder people hit pause. Big moves feel risky when the future is so unpredictable.

Rate cuts aren’t enough

With the recent Bank of Canada rate decrease, interest rates are at the lowest they’ve been in three years. However, I don’t see anything on the horizon that’s going to change buyer sentiment any time soon unless we get back down the interest rates we had during the pandemic, and I don’t foresee that happening. 

In addition to that, even if the prime rate decreases, the big banks aren’t adjusting their fixed mortgage rates so there really isn’t much of a savings being felt. Lowering the prime rate really only benefits those with variable mortgages or lines of credit.

Short-term outlook

My prediction is that the market will remain stagnant for a while. Investors who can’t sell are renting out their units for less as the rental market becomes flooded, which means it’s a good time to be a renter… and with the continued sense of market unpredictability, some may feel that renting is a safer bet for their situation at this time.

My advice for sellers

Sellers will continue to face increased competition. In an up-market, every sale sets a new precedent at a higher price. In today’s market, precedents are still being set - but in the opposite direction.

If there are multiple listings on your street or in your building, your goal should be to sell first out of all of them. That requires standing out, both in presentation and in price. An attractive price often means going lower than you’d like, but that’s the reality we’re facing. You can list at any number you choose, but pricing too high only guarantees your property will be overlooked while someone else sets the benchmark.

My advice for buyers

The leverage you have as a buyer right now is fantastic, regardless of whether a seller is willing to accept an offer, they’re willing to negotiate. You may end up paying a little more now than if you hold off and buy in a year, but if you’re secure in your finances and living in a space that no longer suits your needs and moving into a different space would mean a better quality of life, it’s something to strongly consider.

My prediction for the September numbers?

We will see a huge uptick in the number of new listings. There are over 11,900 listings currently available. I don’t think we’ll see a significant number of sales. Of course there will be sales but prices overall will also/probably continue to slowly soften. 

The bottom line

Waiting and watching can cost you - or it can set you up for the right move. If you’re unsure which way to lean, reach out today and we’ll walk through your options together.

Can you believe it’s already August? Summer always seems to fly by, but there’s still plenty of time to soak it up. Whether you're catching some patio sunshine, sneaking away for a weekend escape, or just enjoying a slower pace, August is all about taking a breath and enjoying the little things.

In this issue, you’ll find a few ways to make the most of what’s left of summer - from spots where you can escape the city buzz to where to find the best Italian food in town.

Before we look ahead, here’s a quick glance back at July's real estate stats: sales were actually up compared to July 2024, though prices have continued to soften. That being said, sellers continue to list their properties giving buyers more options to choose from. Considering the Bank of Canada continues to hold interest rates steady, the hope is that with this stability, it might just help move a few more buyers into action and sales numbers will continue to grow.

Click here for the complete newsletter

In July 2024, interest rates were still high and that was reflected in the number of sales. Now that rates are lower, it’s not a surprise that sales were up this July (not by much, but it’s an improvement!)

Why? People are seeing more stability in the market and are beginning to see the value again. There is a ton of inventory (over 11,700 properties are currently on the market), which means that power has swung back into buyers’ hands, and they’re able to negotiate. Yes, there are still multiple offers in the key neighbourhoods for the perfect house but for the most part prices have softened.

While the Bank of Canada may hold rates steady for the next little while - with a potential cut later this year - smart buyers are moving forward now.

If you're both buying and selling, it's better to sell first in this market. That way, you're in a stronger position to negotiate on a new home and, once your home is sold, you can focus on finding the right place without all the what-ifs. Buyers sometimes worry there won’t be anything out there, but once we start looking, they usually feel a lot more confident. With so much on the market, there will be something that ticks all the boxes.

If you’re a seller, with so much competition, this is not the time to “test” the market to see if maybe you can get a jaw-dropping sale price. You have to set a realistic price, otherwise you’re just wasting your time.

This is a different market than it was a year ago, and some sellers aren’t adjusting well to this new reality – they hope that what they read in the news about softening prices isn’t what’s going to happen with their property.

Even with a property that’s priced well, it’s the properties that are “totally done” where a buyer can move right into and live in their dream aesthetic, that are selling the fastest. Unless a home is in a specific neighbourhood, it’s rare that something in need of renos goes over asking, unless it’s priced really low… and even then it’s rare.

If you don’t have to sell, my advice is just relax and enjoy the rest of summer. Let’s see what the fall brings!

If you’re thinking of making a move this fall, let’s talk. Whether you’re buying, selling, or still figuring things out, it’s worth a conversation. The market may be shifting, but that doesn’t mean you can’t move forward with confidence.

Toronto’s real estate market is anything but traditional this year. There was a very slow start to the spring market, but it feels like things are starting to move again.

Prices might have dipped, so while some folks are still doom-scrolling real estate headlines, others are out there making moves - and finding deals. With more listings to choose from and a little less competition, now might just be the moment to strike (or at least sneak in an offer and see what happens).

With the amount of inventory available, I don’t think it’s any surprise that prices came down a bit. I think that we’ll continue to see a slight price drop when July stats are released– it’s certainly not unusual for activity levels to slow in the heat of the summer.

As well, I believe we’ll continue to see inventory levels grow with sellers who feel now is the right time to sell. It feels like there’s more positivity in the market, perhaps because people are willing to invest again or they’re feeling like there’s a good opportunity out there and it’s worth taking the plunge.

As has been the case over the past few months, there are a number of variables affecting the market. Most banks are predicting that we won’t see another interest rate deduction on July 30, though there are mixed opinions about where rates will be at the end of the year.

And then of course, there are “the tariffs”. The latest announcement is that a tariff of 35% will kick in on August 1, but nobody can predict if that will actually happen. I think people will be watching, but are going to be less incensed, concerned and/or bothered by them than they were in April.

There could be a slowdown, but I don’t think it will stall the market as it did this spring, unless something more dramatic happens, which would not be unprecedented.  Crystal ball, anyone?!?

What we really need for the market to pick up again is stability because that will help people feel confident that the turmoil is nearing it’s end.

On the bright side, homes are still selling (2319 properties sold in June) so there is still movement. The properties that sell the fastest are renovated homes in the more popular neighbourhoods, especially those that are priced right. The challenge is pricing it properly because as prices continue to go down, buyers are looking at recent sales, and they want their purchase to be for a little bit less.

Where are the opportunities right now?

Properties that need some work are a smart place to start. Homes that have been sitting on the market for a while can also present a real opening. They might be appear overpriced to the hopeful buyer, sure - but many sellers won’t budge until there’s an offer in front of them. Sometimes, you don’t truly spot the opportunity until you take that first step and put something on paper. You can’t win unless you play!

If you're thinking about entering the market, this could be your moment to act. Let’s talk about what’s out there and how to make it work for you.

Summer’s almost here, along with long days, warm nights, and all the sunshine we’ve been waiting for. Let’s soak it up and make the most of it!

Toronto is home to some amazing restaurants. If you’re curious about where to find the city’s best Vietnamese spots, you’ll find more information below. And if you're planning your next getaway, you'll find some great ideas for European vacations.

The Bank of Canada held the key interest rate steady at 2.75%. While it’s not the rate drop many were hoping for, it’s still 2% lower than where we were last June. Combine that with lower average home prices, and the carrying costs on a new property are far more manageable than they were two years ago. With so much inventory on the market, it’s a great time for first-time buyers or investors to take a serious look.

Click here for the complete newsletter

The May numbers from the Toronto Real Estate Board reveal it’s absolutely a buyer’s market, and TRREB had a positive spin on their press release (GTA Homebuyers Benefited From More Listings in May).

The May real estate market brought no real surprises, just more of what we’ve been seeing for the past few months. It’s not unusual to see 50+ homes hitting the market on any given day, with only ten to fifteen sales being recorded. At the same time, the number of showings across the board is down considerably.

So what’s driving this? Buyer confidence, or lack of it, is playing a huge role. Even with interest rates holding steady, people aren’t necessarily rushing into the market. Some are betting that we’ll see a rate cut before 2026, but others aren’t so sure. The result? Buyers feel like they hold all the power and are perfectly comfortable waiting it out if they don’t see the right deal. If the deal’s not great, many are simply waiting for something better.

Despite all this, I expect we’ll see sales numbers creep up slightly this month, simply because it’s that season when people think more seriously about making a move. But don’t expect prices to rise. Inventory levels should stay high, and while prices may soften further, I’m not predicting a major drop.

What is selling, you may ask?

You have to be in the sweet spot of a totally renovated home in a key neighbourhood. I’m still seeing lots of showings in Riverdale and other very popular and high-demand neighbourhoods. Offer dates being set which oftentimes, result in multiple offers. But elsewhere, nobody’s showing up on offer night. And how about condos? Well, they aren’t showing much movement but there definitely are still some sales being recorded. Sadly, just not as many as most sellers would hope for.

Right now, there’s an opportunity for buyers to get into a home at a price that would have been unthinkable a year or two ago. Sure, the home you’re selling might not fetch what it would have back then either, but in a down market, moving up makes more sense. If everything’s down 10 percent, your loss on the sale is more than offset by the savings on the purchase of your next home.

So what does this all mean? There are deals to be had, but we’re also seeing consumers pull back, hesitant to make a move. They’re hanging on to their money, watching the headlines, and waiting for a sign that NOW IS THE TIME. The truth is, you can’t time the market. You’ll only know when a market has hit bottom after prices have started to rise. But if you buy smart and hold onto your property for a while, you’ll still come out ahead.

Thinking about making a move while the market is in your favour? Let's talk about your options and how to take advantage of today's conditions. Reach out anytime.