Let's talk about what’s going on in the Greater Toronto Area’s (GTA) real estate market in April 2024.  It’s been a bit of a rollercoaster ride with some areas picking up while others face challenges.

 Overall sales are down 5% compared to April 2023 but if you recall the Bank of Canada last spring communicated that the next rate announcement was going to be a rate drop and what happened was two rate increases – one in June and another in July 2023.  The promise of rate cuts resulted in the 2023 spring market bouncing back. However, After the 2 rate increases in June and July 2023, the real estate market drastically slowed down. In April 2024 new listings were up 47.2% compared to April 2023 and the average sale price is up .03% compared to April 2023. 

Starter Homes Making a Comeback:

The starter freehold homes priced in and around $1 million have experienced a bounce back.  They are back in demand and are selling quickly and often selling with multiple offers with buyers who sat on the sidelines most of 2023 jumping back into the housing market.  Buyers are competing again, hoping to snag a deal before the interest rates drop.

 

More Houses on the Market, Higher Hopes for Sellers: 

 

We are seeing a lot more houses being listed for sale compared to last year, up by about 47.2%.  Sellers are feeling optimistic, hoping for a busy spring with interest rates expected to fall soon.  This increase in listings shows sellers are feeling confident as they see more and more homes sell quickly, and buyers are eager to jump in and get into the housing market.

 

Condo Market Hit the Brakes: 

But it’s a different story for condos, especially in Toronto.  There’s suddenly a flood of condos for sale. It’s like the market hit a pause on condos, signaling some tough times ahead for this part of the market.  However, given that construction of new condos has also come to a halt, and the aggressive population growth the condo market will eventually bounce back.

 Unfortunately, the recently announced changes to the capital gains tax are most likely not helping the condo market as some investors may have decided to attempt to sell before the changes to the capital gains tax come into effect on June 25^th.

Population Boom and Housing Crunch:

The main reason for the dramatic spike in demand for housing is Canada’s aggressive population boom in the past 3 years.  More people means more demand for housing, which will in the foreseeable future result in increased pressure on housing prices until the supply of housing can meet demand which will likely take some to happen.

So, April 2024 shows us that the GTA’s real estate market is a bit of a mixed bag.  Freehold homes in and around the $1 million range are selling quickly, $2- 3 million sales are slow and over $5 million is experiencing a robust market.  The cottage country market continues to be sluggish which is not completely surprising as this is the market that slows down the quickest during economic uncertainty.

 Some parts of the real estate market are heating up while others are cooling down,  As we navigate through these changes, it’s all about being smart and staying informed to make the best decision for buyers, sellers, and everyone in between.

 If you have any questions or are curious about what is happening in your neighbourhood and would like to chat, reach out. I would be happy to help

Condo Market Challenges:

The condo market in Toronto is facing unique challenges, particularly for investors with variable-rate mortgages experiencing negative cash flow.  A spike in condo listings is evident. , and the recent tax changes to Airbnb may further impact condo inventory shortly.  The federal government recently announced that owners of short-term rentals will not be allowed to deduct expenses from rental income moving forward for short-term rentals with some exceptions such as renting space in primary residences and cottage properties.

Looking Ahead:

While the current situation poses some challenges for sellers and buyers, there is s glimmer of hope on the horizon.  Economic indicators point to the BOC potentially starting to lower the overnight rate sometime between May – July 2024.  The Bank of Canada has recently softened it’s language to imply that inflation doesn’t necessarily need to reach the target of 2% before they will consider starting to drop the overnight rate, which suggests a more flexible approach to monetary policy. 

 

As we navigate these complex market dynamics, staying informed and adapting strategies according is key for buyers and sellers alike.  Keeping a close eye on the economic indicators and central bank decisions to anticipate potential shifts in the real estate market will be key.   My recommendation to buyers is if now is a good time to buy, you can get qualified for a mortgage and feel comfortable carrying the monthly mortgage payments now is an ideal time to get actively looking for your dream home.  As of now you have negotiation power and can include conditions to ensure your purchase is a good investment you also have more inventory to pick from and will most likely not have to compete with other buyers when you find the perfect home for you.

 

Do you have questions about buying or selling in our current market?  Reach out and let’s chat. . 

As we navigate the ever-changing Greater Toronto Area (GTA) landscape of the real estate market, it’s crucial to stay informed about the latest trends and predictions.  It can be challenging to predict what will happen in the future.  In this blog update, we delve into the current state of the market, touching on key factors such as interest rates, inflation, housing demand, and economic indicators. 

Interest Rates and the Bank of Canada (BOC):

 
 
The Bank of Canada’s recent decision not to increase rates may signal a potential shift in future rate changes.  Many experts argue that the BOC may have overshot rate increases, with a rapid climb from 1.75% to 5% in just 18 months.  While the next year might pose challenges for mortgage renewals and variable-rate holders, there’s optimism that the BOC may start to reduce the overnight rate within the next 6 months or by mid-next year. 

Inflation and Housing Affordability:

 
 
Inflation during the pandemic was initially driven by super cheap rates and supply challenges, but as the market normalizes, profit margins are stabilizing.  However, the aggressive surge in mortgage interest rates has led to a 30% increase in mortgage payments, contributing to ongoing inflation.  The stress test is also impacting buyers’ ability to qualify for a mortgage and therefore enter the real estate market, leading some to rent, thereby driving up rental costs by 7%. 

Housing Demand and Immigration (Population Growth):

 
 
Despite the current economic challenges, demand remains robust, fueled by a significant influx of immigrants to the country.  Housing construction struggles to keep up with this demand, contributing to the current market dynamics.  While pent-up demand is still prevalent, potential buyers are adopting a wait-and-see approach, affecting the length of time for homes that are listed to sell.   

Job Market and Economic Indicators:

 
 
The job market is normalizing, with unemployment rates rising and job vacancies decreasing.  The quit rate, which spiked during COVID, has returned to 2019 levels.  These indicators, combined with the slowdown in the economy, Homes are currently taking longer to sell, and sellers need to adjust their expectations based on current market conditions if they want to sell.    

Condo Market Challenges:

 
 
The condo market in Toronto is facing unique challenges, particularly for investors with variable-rate mortgages experiencing negative cash flow.  A spike in condo listings is evident. , and the recent tax changes to Airbnb may further impact condo inventory in the near future.  The federal government recently announced that owners of short-term rentals will not be allowed to deduct expenses from rental income moving forward for short-term rentals with some exceptions such as renting space in primary residences and cottage properties. 

Looking Ahead:

 
While the current situation poses some challenges for sellers and buyers, there is s glimmer of hope on the horizon.  Economic indicators point to the BOC potentially starting to lower the overnight rate sometime between May – July 2024.  The Bank of Canada has recently softened its language to imply that inflation doesn’t necessarily need to reach the target of 2% before it will consider starting to drop the overnight rate, which suggests a more flexible approach to monetary policy.
 
As we navigate these complex market dynamics, staying informed and adapting strategies according is key for buyers and sellers alike.  Keeping a close eye on the economic indicators and central bank decisions to anticipate potential shifts in the real estate market will be key.   My recommendation to buyers is if now is a good time to buy, you can get qualified for a mortgage and feel comfortable carrying the monthly mortgage payments now is an ideal time to get actively looking for your dream home.  As of now you have negotiation power and can include conditions to ensure your purchase is a good investment you also have more inventory to pick from and will most likely not have to compete with other buyers when you find the perfect home for you.
 
Do you have questions about buying or selling in our current market?  Reach out and let’s chat. 

 

 

 

 Selling your home is a significant decision that comes with a myriad of choices, one of which is whether to go it alone or enlist the services of a real estate agent.  While it’s entirely possible to sell your home without a realtor, there are various factors to consider before taking the plunge.  In this blog post, we’ll explore the pros and cons of selling your home on your own and provide insights to help you decide if it’s the right choice for you.

Pros of Selling Your Home Without a Realtor

 

Save on Commission Fees:

Real estate agents typically charge a commission fee, which can be a significant cost.  By selling your home yourself, you can potentially save thousands of dollars on commission.

Control Over the Process:

When you sell your home independently, you have complete control over every aspect of the transaction, from setting the listing price to negotiating offers and managing showings.

Personal Involvement:

You can directly interact with potential buyers, which allows you to present your home in the best light and share your personal connection to the property.

Cons of Selling Your Home Without a Realtor

 

Selling your home on your own is a viable option, but it’s not without its challenges.  Carefully weigh the pros and cons, and consider your comfort level, expertise, and the specific real estate market conditions in your area.  If you decide to go the For Sale by Owner (FSBO) route, be sure to do your homework, seek professional advice when needed, and be prepared for the responsibilities that come with handling every aspect of the sale.  On the other hand, if you prefer a smoother, more guided process, enlisting the services of a realtor might be the best choice for you. 

In the ever-evolving landscape of the Greater Toronto Area (GTA) real estate market, the impact of the high mortgage rates, inflation, and the uncertainty surrounding the future Bank of Canada rate hikes continues to influence buyer bahaviour and market dynamics.   As we delve into the latest market trends, it’s evident that significant shifts have occurred since the first couple of months of 2022.
 

Market Normalization:

The real estate market has undergone a process of normalization, steering away from the historical records set in 2021 and early 2022.  The unsustainable trend of aggressive bidding wars during this period has given way to a more balanced market.  The unprecedented 121,712 properties sold in 2021, a result of pent-up demand from the COVID-19 hit of 2020, set the stage for a recalibration.
 

Impact of Bank of Canada Rate Hikes:

With the increase of interest rate hikes by the Bank of Canada, the market began to normalize further.  Prospective buyers, mindful of the changing economic landscape, shifted to the rental market.  This shift resulted in an intense rental market, witnessed by soaring rents and bidding wars for available rental properties. , a more immediate comparison to June 2023 reveals a 29.8% decline, hinting at a market in transition.  New listings, on the other hand, surged by 11.5% compared to July 2022 but faced a 13.5% dip compared to June 2023.
 

Stability in the Face of Uncertainty:

Contrary to concerns about a housing market crash, several factors suggest stability in the GTA. Aggressive population growth in Ontario, with over $1M in new residents added to Canada in 2022, places substantial demand on housing.  The federal government’s commitment to increasing immigration and population growth exacerbates this pressure.  The ongoing wealth transfer among baby boomers, and the early transfer of inheritances, further support the younger generation’s entry into the housing market.
 

Bank of Canada’s Rate Pause and Impact:

The Bank of Canada’s spring communication of possibly pausing interest rate hikes hinted at a cautious approach to assess the impact on inflation. This spring communication alluding to a possible pause prompted a temporary resurgence in buyer activity, particularly for smaller starter homes, however, the subsequent resumption of rate hikes in June and July led to a renewed retreat of buyers to the sidelines.
  

September Market Update:

 September 2023 marked an unexpected downturn, with the lowest number of sales since the financial crisis of 2007/2008.  
 
 
 
Uncertainty regarding interest rates prompted buyers to delay their home purchases.  As we entered the fall market, sales typically picked up, but this year witnessed a notable increase in new property listings.  The impact of reduced sales and increased listing inventory typically results in a drop in average sale prices.  However, prices are up 3.4% compared to August 2023 and up 3% compared to September 2022.  Historically the prices drop but what we are seeing alludes to the ongoing pressure on prices as we move forward.
 

Advice for Buyers and Investors:

Amidst this evolving market, our advice to first-time buyers, investors, and those eyeing recreational properties is clear: now is the time to act.  Ontario’s appeal to high-profile employers ensures a sustained influx of new residents, contributing to the ongoing housing crisis.  Developers struggle to match the pace of demand, emphasizing the urgency for buyers to enter the market.  It all comes down to supply and demand and the supply of new housing stock is just not able to keep up with the demand and as a result, we will continue to see upward pressure on prices.
  
While uncertainties linger, we do not foresee a housing market crash in the foreseeable future.  Waiting for the market to hit bottom is risky, as evident by the recent shifts.  If you have questions or would like to chat, reach out.  Let’s navigate this dynamic real estate landscape together.
 

 

As we navigate through the intricate twists and turns of the Greater Toronto Area (GTA) real estate market, it’s clear that the numbers from July 2023 hold valuable insights into the direction we’re headed.  At the heart of these insights lies the challenges of real estate supply and demand, shedding light on the direction of this real estate market.  While we saw a cooling-off trend in bidding wars, primarily attributed to seasonal slowdown and recent Bank of Canada rate hikes, the broader context of the market speaks volumes about the real estate market’s resilience and potential.
 
Analyzing GTA July 2023 Statistics:
 
 
Sales and Listings:

On a year-over-year basis, sales have increased by over 7.8% compared to the same period in 2022.  However, a more immediate comparison to June 2023 reveals a 29.8% decline, hinting at a real estate market in transition.  New listings, on the other hand, surged by 11.5% compared to July 2022 but faced a 13.5% dip compared to June 2023.
 
Price Trends:
 
While we have recently experienced a cooling off in the real estate market, the average sale price held its ground, remaining 4.2% higher in July 2023 than in July 2022. However, a slight 0.05% dip from June 2023 highlights the real estate market’s resilience.  Despite the recent cooling off of the real estate market price levels are still above the previous year, signifying the market’s underlying strength.
 
The Crucial Conundrum: Housing Supply and Construction Challenges:
 
Addressing the challenge of housing supply and affordability remains imperative.  Despite concerted efforts by the government, the gap between supply and demand persists.  As the government makes an effort to restore housing affordability, a stark reality exists – the solution demands a substantial surge in housing inventory.  Even as initiatives unfold in response to the surging immigration rates, the government's immediate impact on Ontario’s housing affordability seems limited.  
 
The surge in immigration, particularly in 2022, has placed additional pressure on an already limited housing supply.  This demographic influx, coupled with the continued lag in new construction, exacerbates the housing challenges.  Developers grapple with rising construction costs and a shortage of skilled trades, further constraining their ability to meet demand. Despite the government’s efforts to increase housing supply, the issue persists. Restoring housing affordability will require a substantial increase in housing inventory.  Given the significant increase in immigration, the initiatives being rolled out may not have a profound impact on housing affordability in Ontario in the near future.  The rise in rental prices may have also contributed to the increase in home sales.
 
In 2022 we saw a record number of immigrants coming to Canada, and with an expected increase in annual immigrants, the already limited housing supply is sure to drive home prices upwards.  New construction is just not able to keep up with demand.  Furthermore, Developers are struggling with construction cost increases and a shortage of trades.
 
As a result, the GTA real estate market will continue for the foreseeable future to experience a shortage of supply and demand will definitely outpace supply which will continue to place upward pressure on sale price.
 
Looking Ahead:  Supply-Demand Balance:
 
The GTA real estate market stands at a crossroads.  As we look into the future, it’s evident that supply will remain outpaced by demand, which will result in ongoing pressure on sale prices.  This ongoing shortage presents a landscape where opportunities and challenges coexist.
 
Conclusion:
 
In 2023, the housing market provides an opportunity for investors, purchasing a cottage/recreational property and first-time buyers.  While housing supply hurdles persist, the current cooldown in the market fosters an opportunity that should not be overlooked. 

I encourage you to seize the advantages of this market and explore properties aligned to your budget and preferences.  If you have any questions, want to chat, or need further assistance, please don’t hesitate to reach out.  It is my pleasure to help in any way I can. 
 

 

 

Buying your first home is an exciting milestone, but it can also be a daunting process. From navigating the real estate market to securing a mortgage, there are numerous factors to consider. As an experienced realtor, I understand the challenges first-time homebuyers face. That's why I compiled this comprehensive guide of the top 10 essential tips to help you make informed decisions and find your dream home with confidence.

1. Assess Your Finances and Set a Budget:

Before diving into the home search, take a close look at your finances. Calculate your monthly income, expenses, and debts to determine how much you can comfortably afford to spend on a home. Setting a budget early on will guide your search and prevent you from overextending yourself.

2. Get Pre-Approved for a Mortgage:

Obtaining pre-approval from a reputable lender or mortgage broker gives you a competitive edge in the real estate market. It shows sellers that you're a serious buyer and can expedite the buying process once you find your ideal home.

3. Understand the Real Estate Market:

Real estate markets can vary significantly, even within the same city. Research local market trends, property values, and the demand for housing in your preferred neighborhoods. Understanding the market will help you make informed decisions and identify potential investment opportunities.

4. Choose the Right Location (Location, Location, Location):

The location of your home is just as crucial as the property itself. Consider factors like commute times, school districts, nearby amenities, and future development plans. Selecting the right location ensures your new home aligns with your lifestyle and future needs.

5. Work with a Reputable Realtor:

Navigating the real estate market can be overwhelming for first-time buyers. Enlisting the expertise of a reputable and trusted realtor can simplify the process and help you find properties that match your criteria. Look for an agent that you feel you can trust and that is knowledgeable and can guide and provide you with valuable information to help you purchase that perfect home.  Don’t underestimate what difference the right realtor can make in helping you find and negotiate in purchasing a home..

6. Conduct Thorough Home Inspections:

Don't let appearances deceive you. Schedule a professional home inspection to uncover any hidden issues or potential red flags in the property. This step can save you from costly surprises down the road.

7. Negotiate Wisely:

Negotiation is an essential skill in real estate transactions. Your realtor can assist in crafting a competitive offer and negotiating with sellers. Stay open to compromises while keeping your best interests in mind.

8. Factor in Additional Costs:

Beyond the purchase price, remember to account for additional costs like closing fees, property taxes, insurance, and potential renovation expenses. Being financially prepared for these costs will prevent last-minute stress.

9. Research Homeownership Incentives:

Determine if there are incentives, grants, or special programs for first-time homebuyers. Do your research to determine if there are any government incentives you qualify to make homeownership more affordable.

10. Trust Your Instincts:

Lastly, trust your instincts when making a decision. If a property feels right and meets your criteria, don't hesitate to move forward. While it's essential to be prudent, waiting too long in a competitive market may result in missed opportunities.

Navigating the real estate market as a first-time homebuyer can be both challenging and rewarding. By following these 10 essential tips, you'll be well-equipped to make confident decisions throughout the home-buying process. Remember, working with an experienced realtor is invaluable and can make your journey to homeownership smoother and more successful. Happy house hunting!

GTA Housing Market Update: Increased Demand and Limited Supply Opportunity for First-Time Buyers in 2023
TAG: TORONTO REAL ESTATE, VAUGHAN REAL ESTATE, REAL ESTATE, REAL ESTATE MARKET UPDATE, BEST VAUGHAN REALTOR, HOUSES FOR SALE

The housing market in the Greater Toronto Area (GTA) has seen significant changes in 2023. Higher borrowing costs have led to home buyers to adjust their purchasing needs, resulting in a resurgence of market activity. The increased demand, coupled with a sluggish supply of new listings, is once again driving up sales prices. As a realtor, my advice to first-time buyers is to take advantage of the current market conditions and consider purchasing a home that fits your budget. In this blog post, I’ll provide an overview of the GTA’s housing market in May 2023 and offer insights for potential buyers.

 

GTA May 2023 Stats

 

The GTA housing market continued to tighten, with notable improvements since February 2023.

 

''''''

 

Sales and Listings:

 

• - On a year-over-year basis, sales have increased by over 16% compared to May 2022.
•  
• - New listings were down in May 2023 by 28%, leading to increased competition among buyers.
•  
• - The limited supply relative to demand has resulted in bidding wars, particularly in the starter home segment, such as townhomes and semi-detached homes.
•  

 

Market Performance:

 

• - Average sale prices are still down by 1.2% compared to May 2022 but have increased by 8.4% compared to April 2023.
   

• - As of May 2023, the average sale price across the GTA was $1,196,101.

 

 

The Challenge of Housing Supply:
 

Meeting the demand for housing ownership remains a significant challenge in the GTA. Despite the government’s efforts

to increase the housing supply, the issue persists. Restoring housing affordability will require a substantial increase in

housing inventory. Given the significant increase in immigration, the initiatives being rolled out may not have a profound

impact on housing affordability in Ontario in the near future. The rise in rental prices may have also contributed to the

increase in home sales.

 

Advice to First-Time Buyers:
 

Considering the current market dynamics, I strongly recommend first-time buyers to enter the housing market in 2023. When inflation returns to the Bank of Canada’s targets, the potential decrease in interest rates may make housing more affordable but will also result in a dramatic increase in demand. The pent-up demand is likely to result in aggressive spikes in prices in the next 1 – 2 years, leading to aggressive bidding wars once again. Existing homeowners may experience less significant impacts since they sell at higher prices and buy at higher prices minimizing price fluctuation impacts on existing homeowners.

 

Opportunity for Waterfront Property Buyers:
 

If you are considering buying a waterfront property, this year presents an excellent opportunity. Cottage properties, on the other hand, have been slower to sell and are experiencing longer listing periods. The bounce back for cottage properties is yet to be seen.

 

Conclusion:
 

The GTA housing market in 2023 offers favourable conditions for first-time buyers to enter the market. Despite challenges related to housing supply, the increase in demand and limited listings opportunities still exist. As a realtor, I encourage you to take advantage of this market and consider purchasing a property that aligns with your budget and preferences.

 

If you have any questions or need further assistance, please don’t hesitate to reach out. It is my pleasure to help in any way I can.

 

 

Although the year-over-year listing and sales are down, the month-over-month numbers are showing increased activity in the real real estate market.  But why?  Hint, hint --- supply and demand.  
  
GTA REALTORS® Release April 2023 Stats
 The Greater Toronto Area (GTA) housing market continued to tighten in April 2023. On a year-over-year basis, sales edged lower compared to April 2022, but new listings were down by more than one-third. Fewer listings relative to sales meant there was more competition between buyers, supporting an improvement in selling prices since the beginning of this year.
 
“In line with TRREB’s outlook and recent consumer polling results, we are seeing a gradual improvement in sales and average selling price. Many buyers have come to terms with higher borrowing costs and are taking advantage of lower selling prices compared to this time last year. The issue moving forward will not be the demand for ownership housing, but rather the ability to meet this demand with adequate supply. This is a policy issue that requires a sustained effort from all levels of government,” said TRREB President Paul Baron.
 
GTA REALTORS® reported 7,531 sales through TRREB’s MLS® System in April 2023 – down by 5.2 percent compared to April 2022. Compared to March 2023, sales increased on an actual and seasonally adjusted basis. On a year-over-year basis, new listings were down by 38.3 percent in April 2023.
 
The MLS® Home Price Index (HPI) Composite Benchmark was down by 12.1 percent year-over-year in April 2023. Compared to March, the benchmark price was up on an actual and seasonally adjusted basis. The average selling price in the GTA was $1,153,269 in April 2023 – down 7.8 percent compared to $1,250,704 in April 2022. The average selling price also increased compared to March, both on an actual and seasonally adjusted basis.
 
“As demand for ownership housing has picked up relative to supply, we are seeing renewed upward pressure on home prices. For a short period of time, higher borrowing costs trumped the impact of the constrained housing supply in the GTA. Renewed competition between buyers is once again shining the spotlight on the persistent lack of listings and resulting impact on affordability,” said TRREB Chief Market Analyst Jason Mercer.
 
“Lack of affordability in the GTA ownership and rental housing markets has been well-documented. On top of this, households faced with steep price increases for basic goods and services have had to make tough decisions to adapt. It is time for governments to make tough choices as well. On average, every dollar a household makes in the first half of the year goes to taxes. Governments need to provide more value for every tax dollar they collect and should be looking for ways to reduce tax burdens moving forward,” said TRREB CEO John DiMichele.
  
Click Here to View Full Report
 
 
 
If you have any questions please reach out.  It is my pleasure to help in any way I can.

 

 

 

We continue to see buyers become more active after a very sluggish ten months in 2022. In March 2023 we experienced tighter market conditions compared to March 2022. Buyers are coming off the sidelines and we are seeing bidding wars once again. Although we saw an increase in new listings in March compared to February 2023 – listings remain well below the March 2022 levels. The lack of inventory persisted, resulting in buyers competing for homes and driving up prices compared to February 2023.
 

March Supply and Demand Challenge Continues

Although we experienced an increase in new listings in March the supply of homes available for sale continued to remain relatively low. In March 2023 new listings were down -44.3% compared to March 2022 but were up 25% compared to February 2023. However, in many regions listing inventory continued to be at historically low levels. The low inventory of new listings has resulted in buyers once again competing for homes resulting in multiple offers and bidding wars on these homes.

As a result, we saw that the average price increased by 1.2% compared to February 2023 but was still 14.6% lower compared to the historical record of March 2023. We are also starting to see the number of days on the market starting to drop from 33 in February to 27 in March 2023 an indication of a tightening market and properties selling quicker.

March Average Sale Price

As mentioned earlier, the lower inventory combined with more buyers coming out of the sidelines has resulted in rising prices compared to February 2023. The average sale price has increased by 1.2% compared to February 2023 but is down 14.6% compared to March 2022. Recent consumer polling suggests that demand for home ownership will continue to increase for the balance of the year.

 

Outlook

There is currently increased optimism that we are seeing a recovery in the real estate market. The Bank of Canada appears to be delivering on its commitment to pause overnight rate increases. Inflation has continued to come down.

I know that there is concern about the stability of the banking system. However, what is happening in the US banking system is unlikely to ripple over to our Canadian banks as our banks have high reserves and more stringent and conservative lending practices.

There is an expectation that inflation in Canada will continue to decrease and we may possibly start to see interest rate decreases towards the end of 2023 or as early as 2024. As a result, many buyers are seeing this as an opportunity and we are seeing more and more buyers getting engaged and actively searching for a home.

Great Opportunity for Buyers

Although we are starting to see bidding wars return to the real estate market to date they are not as aggressive as we saw in 2021 and the first two months of 2022.

In the past couple of months we are starting to see average sale price increases rather than the price decreases that we experienced in the last 10 months of 2022. 2023 is the year to buy a property. I caution buyers that are waiting to see if the market will “crash”. Trying to time the market can be dangerous.

My advice to buyers and particularly first-time buyers is to buy what they can manage and continue to save and build equity rather than paying a landlord’s mortgage. If you are a first-time buyer or an investor it is a good time to get more active in looking for that perfect property.

Conclusion

Overall, the real estate market in March was marked by low inventory, increased demand, and rising prices. It is expected that these trends will continue through the balance of 2023. I project that by 2024 there will be additional pressure on prices and demand will aggressively outpace supply. Buyers have been sitting on the sidelines and immigration continues to ramp up which will in 2024 result in aggressive bidding wars particularly once interest rates start to drop. 2023 is the year to purchase real estate.

Buy and sell your home or recreational property with Sylvia Smith. She specializes in residential and recreational real estate within the Greater Toronto Area, Parry Sound, and Muskoka. Whether you are a first-time buyer, an investor or you are looking for a cottage property, she provides a seamless experience and is committed to making clients’ real estate dreams come true while protecting their interests and providing integrity and client service. If you have any questions or are thinking of buying or selling, don’t hesitate to reach out to Sylvia Smith.

 

Real estate investing can be a great way to build wealth over time. With the right knowledge and strategy, you can generate passive income and grow your portfolio of properties. If you're considering investing in real estate, here are some tips for getting started:

1. Start with a solid financial plan. Before you begin investing in real estate, it's essential to have a clear understanding of your financial situation. Consider your income, expenses, and debts, and make a plan for how much you can afford to invest. Keep in mind that real estate investing involves upfront costs, so it's important to have a strong financial foundation or have access to cash.
2. Choose the right properties. Look for properties that have the potential for long-term growth and can generate steady rental income. Consider factors like location, property type, and condition. Conduct thorough research and analysis to determine which properties are likely to provide the best return on investment.
3. Research the market. Stay up-to-date on local real estate market trends, including prices, rental rates, and vacancy rates. This can help you make informed decisions about which properties to invest in. Keep an eye out for emerging markets or up-and-coming neighborhoods that may provide new investment opportunities.
4. Understand the financing options. There are many financing options available for real estate investors, including traditional mortgages, private loans, and hard money loans. Make sure you understand the pros and cons of each option and choose the one that's right for you. Shop around for the best interest rates and terms to ensure that you're getting the most favorable financing terms possible.
5. Build a network of professionals. As a real estate investor, you'll need a team of professionals to help you navigate the process, including real estate agents, contractors, property managers, and accountants. Build relationships with trusted professionals who can help you find new investment opportunities and manage your properties.
6. Consider tax implications. Real estate investing can have significant tax benefits, including deductions for mortgage interest, property taxes, and depreciation. Talk to a tax professional to understand how these benefits can impact your overall financial plan. Make sure you're taking advantage of all the tax benefits available to you as a real estate investor.
7. Develop a long-term strategy. Real estate investing is a long-term game, so it's essential to have a clear strategy for building your portfolio over time. Consider factors like your investment goals, timeline, and risk tolerance. Develop a plan that aligns with your financial goals and investment objectives.

 

By following these tips, you can build wealth through real estate investing and create a more secure financial future. 

 

As a real estate investor and professional, I can help you navigate the process and find the right properties to help you reach your investment goals. Contact me today to learn more about real estate investing and how I can help you get started.