The Importance Of Confidence Cannot Be Overstated
Cash Is King, But So Is Confidence.
As much as we would love to have more of both, our real estate market is facing a crossroads of confidence. If 2025 has taught us anything, it is that we should not assume business as usual as to what tomorrow brings. Ever since January, there has been a lack of confidence in the global economy. And, specifically, what will happen to Canada’s trade as the US, Canada, and Mexico look to reset their trade agreement? We are all left wondering what tomorrow (and the years to come) look like for our economy and, ultimately, our job security and confidence.
Markets need some level of confidence to push upwards. In a time of uncertainty, we have seen (and likely will for some time) fits and spurts of strength. In the real estate market, there may be weeks or a month of stronger activity in the freehold housing arena, followed by a softening. Condos are slow, full stop, and will likely struggle for several years to come. Without confidence in the state of our economy and job market in the coming months and years, buyers will hesitate to make offers. If buyers hesitate, then listings will sit on the market. If listings linger on the market, then values will soften. It begs the question: where is the value floor?
Thinking about buying a home? Click here to browse my featured listings.
Looking for more insights into Toronto real estate? Check out these related posts from my blog!
- Where to Buy A Toronto Condo If You Don’t Want To Live Downtown
- What Are Must-Make Repairs Before You Sell Your Toronto Home?
- Is Rosedale A Family Neighbourhood?
How will Toronto’s real estate market build up confidence?
We need a stronger job economy, we need a strong position in the upcoming negotiation of CUSMA (Canada-United States-Mexico Agreement), lower BoC lending rates, perhaps even a loosening of foreign buyer rules (possibly allow Americans to buy principal residences?), and remove the City of Toronto Land Transfer Tax; the list could go on and on. Ultimately, we need to find a way to get the condo market moving. This is essential. If employment is poor (which it is) in the 24-34 year-old range, it will be tough for these would-be first-time buyers to stay in an expensive city like Toronto, save money, and buy a one-bedroom condo. We need to see a floor on condo values, followed by a value recovery. We need condo values to stabilize, then begin generating value growth to stabilize the freehold housing market further. As the saying goes, a high tide raises all boats.
This market is spotty, and we expect it to soften more in the coming months, that being said we cannot be certain, so we need to be wise today and make the right steps to achive our defined success. Today’s buyers with courage, cash, and confidence will look back on this time as a great opportunity and be happy they bought when they did.
Long-term, Toronto is on solid ground; mark our words, there will be another housing crisis in the 2028-2023 range. We would love to see the boom-bust cycle addressed, but that is a challenge for the government to initiate; it is better left to a more robust analysis.
Have questions about buying or selling in today’s market? I have answers! Reach me by email at ryan@ryanroberts.ca or call 416-925-9191.
