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.

Don’t let the season’s longer days go to waste, make the most out of the weather and head out on some local adventures. June is Pride Month, and the best resource for what’s happening is the Pride Toronto website.

The Toronto Real Estate Board has released the numbers for May. We are seeing the same trends we’ve seen over the past few months; more listings on the market than this time last year, and fewer sales. Prices are down slightly compared to last year, with the exception of townhouses. There are definitely opportunities for buyers, especially for those who need more space!

As predicted, the Bank of Canada has reduced the key interest rate by .25%. I don't think this will have an immediate impact on the market, but it should give confidence to buyers that interest rates have peaked and are on the way back down, though we won't see the rates go as low as they were in 2020 and 2021.

Click here for the full newsletter

A lot has happened in the real estate market over the past few weeks, and the changes keep coming.

In April, not only did the Bank of Canada hold rates steady again, it indicated that an interest rate reduction was in the future cards. It will likely only be .25% when it happens – perhaps as early as June – but it would easily be enough to spur some people into action.

The federal government also released a budget and announced that starting on August 1, first-time homebuyers will be able to use up to $60,000 of their RRSPs for a downpayment (up from $35,000) and lenders will be able to offer them a 30 year amortization term as opposed to 25 years.

Will this have a major impact on the market? Probably not. The difference between monthly payments would be less than $250 on a $500,000 mortgage. However, it will help some first-time buyers enter the market, and that is definitely a good thing. Click here for more 

As for the market itself? March saw more of the same kinds of activity we’ve seen this year so far. We continue to see an abundance of new listings coming out and not as many sales. I rack this up to as potential buyers (investors and end users) wait for interest rates to drop. We’re definitely seeing this in the condo market more than the single-family home market.

In actual numbers:

In C08 (Yonge east to the Don Valley, Bloor to the Waterfront), there were 417 new listings in March and 128 sales, which is roughly only about 30%.

In C01 (Yonge west to the Dufferin rail tracks, Bloor to the Waterfront), the numbers were slightly higher – 757 listings with 256 sales, which means roughly 1/3 of the listings sold.

That may seem low, but even in the hottest market you’re lucky to see 60% of the homes listed actually sell. The number of properties being listed is lower than what’s being reported. I’m seeing listings being re-listed and refreshed, which skews the numbers. (Each time a property is re-listed, it counts as a new listing.)

What’s to come this spring?

I believe we’ll see a continued trend of more properties coming out on the market and fewer sales across the board. In specific sectors, we’ll see a higher percentage of single family homes selling, compared to condos.

Until interest rates come down, there won’t be a substantial change in activity levels even with the changes in the Federal budget.

I always like to highlight opportunities in the market. While it’s never good karma to take advantage of someone’s circumstances, there are deals to be had on condos. Some (though not many) sellers have to sell. There are definitely units that have been on the market for a while and are not getting traffic. When an offer comes along, the sellers are thankful to see it. It’s not desperation - people are just generally ready to negotiate because they want to get their property sold, especially if it has been on the market for so long.

I know buyers are waiting for interest rates to go down, but I don’t think it’s sunk in for buyers that this interest rate climate is probably the new normal for a while to come. We’re unlikely to see rates as low as they were in 2020 any time soon.

If you're curious about what's happening in your neighbourhood, please get in touch! 

Happy Spring... a time when we're re-energized, renewed and refreshed... and that includes my website. Take a peek at the revamped www.BE-AT-HOME.com and let me know your thoughts!

Scroll down and I've got some market predictions, bathroom upgrade ideas, and places to find the best fish & chips... as well as some exciting new property offerings!

Also below, and despite a little controversy, Hot Docs is set to return at the end of April with a full range of programming, from a film about trans-trendsetter Jackie Shane to films about world politics, and the climate.

As for the market, the unseasonably warm weather this winter led to a busier-than-usual market in March, and with signs pointing to an interest rate reduction coming this year, we anticipate the spring market will continue to be busy as more listings are hitting the market each week!

Click here for the full newsletter

We might be in the shortest month of the year, but the city is brimming with exciting upcoming events. One in particular to keep watch for is Sugar Shack TO... maple syrup enthusiasts unite!! And, if you’re a night owl, the city has got you covered with some fantastic 24-hour dining options.

The Bank of Canada chose to hold interest rates steady at the end of January, but even without a rate decrease, we're seeing more activity in the market, including a return to multiple offers because there are so few properties on the market. If you are considering making a move this year, now is the time to get started!

Click here for the full newsletter

In the first three days after March Break, the Toronto housing market was inundated with new listings. Will that translate into sales? We’ll have to wait until the March numbers are released, but one thing to keep in mind is that in February, the average single family home was on the market for 26 days, while the average condo took 41 days.

The spring market traditionally begins after Easter, but because we’ve had the warmest winter on record since 2009, house hunting has become more appealing and with the exception of March Break, it’s been a busy month!

One thing is for certain - there’s less emotion in the market than there was before, especially for condo buyers. Buyers are confident that they’ll find what they want. Last month there were about 4,400 condos on the market, including 2,237 that were listed in February.

There also doesn’t seem to be any sense of urgency around units that are usually in high demand which is adding the amount of time properties are staying on the market. Add to that, a lot of listings are being terminated and then relisted either at the same price or at a lower price which increases the "property days on market" even more.

The reason this is happening is people are still testing the market looking for a deal. When it comes to condos, if they are looking to purchase, they are being careful and waiting patiently for the right opportunity.

Case in point, a unit at the Massey Harris lofts (not my listing!). It shows beautifully and they don’t come up very often, but after three weeks, the price was lowered. It went from $1,149,000 to under $1M and as of this writing, it’s still on the market.

Single family homes are a different story. One thing I’m noticing is that so many sales are significantly over asking (like hundreds of thousands of dollars), which could partly be due to underpricing, but also people are expecting an interest rate drop and they’re trying to get ahead of the expected uptick in the market because of lowered rates.

I think when we get the March stats, we’ll see the price of condos remain fairly stagnant, but there will be price growth in the single family home market.

The media is also driving the market. If you read the headlines, you see things like “First-Time Buyers Are Bringing On Bidding Wars And Closing In On $1M Listings”

“What will Toronto's spring housing market look like? Experts say first-time buyers are back — and prices could jump 6% this year”

I often am asked when is the best time to make a move and my answer is always the same. You can try to strategize the market and time it perfectly, but it's rare that one ever hits the bottom or the top of the market. Those that succeed most in real estate, are those that ride allong the middle over time. Quite, honeslty, it always comes down to making a move at the time that’s best for you.

I can’t predict if there will be a substantial difference between what’s happening in the market now and what will happen later this spring. Even if the Bank of Canada decreases the interest rate, it’ll be a quarter of a percent, which will give people some positivity. It may drive a few buyers forward, but I don’t know whether it’ll be substantial.

If you’re curious about what’s selling in your neighbourhood or just want to talk real estate, give me a call!

There’s a lot of talk about what’s happening with housing in Toronto and the real estate market in general, so here is my take on the property tax increase, TRESA, and interest rates.

It was recently announced that the city was proposing an increase to property taxes of 10.5%, or even as much as 16.5%, depending on how much help the Federal government was going to give the city. In the end, it’s understood the property tax increase will land around a 9.5% increased… still a big pill to swallow for some.

Although an almost double-digit increase sounds like a lot, it will work out to about $30 more per month for the average Toronto homeowner and likely something that most homeowners will be able to absorb. For those with variable rate mortgages currently feeling the pinch, a potential interest rate reduction later this year may save more than that.

Toronto homeowners pay some of the lowest property taxes in the region.

Here’s a good piece from the Star with come clear explanations of how property tax is calculated.

TRESA, aka the Trust in Real Estate Services Act will affect buyers and sellers. If you want to know everything about the changes, click here.

However, the one change that will affect buyers and sellers is that both sides now have the ability to have open bids. Before, in a multiple offer situation, the only person who knew the details of each offer was the seller.

I don’t have a problem with this in theory, because buyers have some protection. They can insert a clause in their offer that says if the seller discloses any details of their offer, they have the opportunity to revoke the offer within an hour of finding out that the details of their offer were being made public. I don’t know why any buyer wouldn’t want to have that clause, because even if a buyer wants their information kept secret, they can still see what’s in the other offers.

The problem is with all the options sellers have. Not only can the seller pick and choose which parts of the offers they receive to be transparent about (deposit, closing date, offer amount), they can also remove those options if they send bidders back to sweeten their offers.

One reason a seller might want to be open about the offers: the bidder with the highest offer may have a closing date that doesn’t work, which gives the seller an opportunity to give the next person in line, who’s closing date does work, the ability to match the other offer.

A disadvantage to being open could be that one bidder wants the property so badly they offer significantly more than anybody else. Without transparency, only the seller knows the difference between the top two bids. But with open bidding, a seller could receive less – the top bidder may offer only a few thousand more than the second highest.

The benefit for buyers would be the knowledge of how close their bid was and whether it makes sense for them to continue, or if they’re so far below the other offers they should drop out.

We’ll see how this plays out. The advantage of having the legislation come into effect now is, with the market being less competitive than it was, there are fewer situations with multiple offers, so it won’t be chaos across the city.

Finally, let’s talk about interest rates. Phil Soper, president of Royal LePage, doesn’t think it’ll be interest rate reductions that spur on the market, it’ll be consumer confidence that the price they pay for a home will increase. I hate to disagree but as I mentioned last month, I think even a small decrease in the overnight rate will make a difference in the volume of homes listed and sold this spring. The first announcement was on January 24 and the rate held. There will be further announcements on March 6 and April 10. My prediction is Toronto’s real estate market will rise again…. but it may be a few months before we see some serious movement.

KUUMBA (Feb. 1-29)

Harbourfront Centre’s KUUMBA is Toronto’s largest and longest-running Black Futures Month festival, embracing the rich tapestry of culture, diversity and creativity through a month-long celebration of Black cultural programming.

Toronto’s Valentine Market (Feb. 3rd & 4th)

Enjoy 10,000 square feet of pure Valentine’s bliss. Perfect for couples, the area features 35 handpicked vendors, engaging activities, and automatic prize entries. Capture your memories at the many photo booths, making this market the ultimate Valentine’s Day experience.

Project X (Feb. 3rd)

Experience Project X, an immersive event showcasing diverse creative disciplines. Explore gallery pieces, enjoy performances, and browse the vendor market. Beyond creativity, it’s a networking opportunity for like-minded individuals in the creative sphere.

Sweet City Fest (Feb. 9-19)

Sweet City Fest is a festival celebrating all things SWEET. Expect shopping deals, themed vendor markets and workshops, live music nights, Valentine’s Day experiences, food and drink specials, and tons of family activities for the long weekend.

Craft Beer Fest (Feb. 10th)

Celebrate Winter at the Roundhouse Craft Beer Fest! Toronto’s biggest and baddest après-brew-ski party. Gather your pals, retro ski gear, long johns, and all the flannel you can get your mitts on.

The Winter Chocolate Show (Feb. 10th)

Enjoy a delightful day dedicated to all things chocolate! Join this chocolate-filled event featuring informative seminars, delectable bean-to-bar chocolates, innovative bars, bonbons, and passionate chocolate enthusiasts. It’s a day of tasting, talking, and indulging in the world of chocolate.

Lunar New Year Celebrations (Feb. 10th & 11th)

Toronto I❤︎BEER & Taco Festival (Feb. 17th)

It’s the first ever Toronto I❤︎BEER & Taco Festival presented by Cowbell Brewing Co. and in collaboration with Fury Hot Sauce. Enjoy a fun filled day or night of beer, cider and spirits sampling, games, dancing and tacos!

Winter Stations (Feb. 19th)

Experience the enchanting Winter Stations public art exhibition at Woodbine Beach in Toronto! Each year, this unique event transforms the shoreline into a captivating outdoor gallery, showcasing imaginative art installations inspired by the winter season.

Roller Express (Dec. 1, 2023 – Feb. 4, 2024)

Enjoy 5,500 sqft of skating surface, plus a skating trail that leads into the carriageway tunnel, animated with lights for a fun retro vibe! Accompanying the roller-skating extravaganza will be free skate rentals, free skate lessons, immersive activities, tasty eats and drink options at the Snack Bar with food available for purchase, and so much more.

Toronto’s Mocktail Competition (Jan 13)

Get ready to kick off the New Year with an epic Dry January celebration as Toronto’s top mixologists compete to create the city’s best Mocktail! The event will feature a wellness market, activations, and with Ceder’s Non-Alcoholic spirits, attendees can enjoy all the taste and sophistication without the alcohol.

The Interior Design Show (Jan. 18-21)

The Interior Design Show celebrates and promotes the best in global and Canadian design, from emerging designers to legacy brands. IDS is not just a fair – it’s a total design experience.

DesignTO Festival (Jan. 19-28)

DesignTO Festival brings people together to design a better future, one that is more sustainable, just, and joyful. The Festival happens online and in-person at venues across the City of Toronto.

Winterlicious (Jan. 26th to Feb. 8th)

Savour every bite. Gather with friends and family and delight in delicious three-course prix fixe lunch and dinner menus at more than 200 local restaurants. (January 26 to February 8)

Port Union Winterfest (Jan. 27)

Port Union Winterfest is a winter community festival for all ages! Enjoy Live Entertainment, Displays, Games,Inflatables, BBQ and much more! (January 27)

Toronto Tea Festival (Jan. 27 -28)

New to Netflix in January

Netflix has revealed the full list of new movies and shows coming to its service in Canada in January 2024. Highlights for the month include Lift, The Brothers Sun, Delicious in Dungeon, and Good Grief, starring Canadian Dan Levy.

It’s about this time of year that I gaze into my crystal ball and predict what’s going to happen in Toronto’s real estate market.

It’s hard to be accurate at the best of times, but with the uncertainty around mortgage rates, it’s even more difficult. I do want to try though, so here goes.

Mortgage Rates

According to CMHC, there are 2.2 million mortgages coming up for renewal in 2024. Those who have variable rate mortgages won’t be surprised by their future payments, but anybody with a fixed rate just might be.

I don’t believe that mortgage rates will increase again, but I also think that they’re not going to go down significantly either. If your mortgage is up for renewal in the first six months of the year, it’s worth talking to your mortgage broker about a shorter-term option so that you can easily renegotiate when rates do go lower.

Though we all grumbled about the mortgage stress test, it is going to be that test that saves the market from collapse. I predict the majority of homeowners will find a way to absorb the extra costs of higher monthly payments and there will not be a tsunami of listings hitting the market which would ultimately result in a dramatic average-price drop.

Although I believe the single family home market will remain relatively strong, I do have a hunch we are going to see more investor-owned lower end condos hit MLS in the coming months and that market will be the most vulnerable. I don’t think it will be overwhelming, but even investors with fixed-rate mortgages are going to face an increase with their mortgage renewals, and unless the current rent covers the new mortgage, they may look to sell the unit.  (What’s that? You want to learn more about the complications of selling a tenanted unit? Click here.)

More lower-end condo listings will most likely result in further softening of prices for studio and one bedroom condos, which is good news for first time buyers, but with fewer rentals on the market, I predict we’re going to see rental prices increase, despite the latest news that in November, the average rent in Toronto decreased by .2% compared to October, when rents were at a record high.

Will prices go down?

We definitely will continue to see more listings on the market, and those properties will take longer to sell. The more inventory there is, the more there is going to be a softening of prices, especially if rates don’t come down and people can’t afford to buy.

That said, if mortgage rates do go down, even by a single percentage point, we will see the market roar back to life. On a $500,000 mortgage, the difference is almost $300 a month.

As always, there are key neighbourhoods in the city that will defy the odds and that won’t be affected by whatever happens with mortgage rates.

Do you agree? Disagree? Let me know!