Freehold House Recovery Is Happening
We are tracking much fewer sales than a year ago—in fact, it’s 20% less. That being said, the demand has served the values, which have remained relatively stable. It’s integral to be discerning and not look at the overall stats in the GTA. After all, real estate is local.
Condos Remain Slower
Condos remain slow, primarily due to the smaller units, the bachelors, the one-beds, and the two-bed 600 square foot units, not to mention the three-bed 700-800 square foot units. Suffice to say, the reason these are slower is beyond the cost of borrowing money, it’s the livability of these units. As much as there have been a lot of condo developments in recent years, a vast majority of the units have been catered to investors/speculators who had solely been thinking about value increase and their return on investment. The livability of the units was not of much consideration, partly because the acquisition price was/is prohibitively high for truly livable units – the landlords couldn’t manage the higher mortgage amount even with the higher rents. There are also fewer transactions in the livable 2 and 3-bedroom units, so the price increase was simply not there over the years.
On the hunt for more Toronto real estate insights? Explore these recent posts from our 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?
Slow Down Due To Storms
I will begin this portion by clarifying weather storms versus the stormy trade winds in the next section. Toronto (and Ontario) got hit by more snow in a three-day period than we have seen in over 25 years. This was on top of a good snow covering to begin with. The city came to a complete stop for a day; that day lingered into family day weekend, and it all but created a week off in the real estate market. It’s one thing to have fewer people active in the snow, it’s another thing when you cannot find a parking spot on the street due to the snow banks, and another when many two-way streets turned to one-way streets with snow accumulation. We thank the city for their efforts in clearing the roads; it was a lot of work, and we applaud their speed and tactics.
Tariffs
Trade winds are one thing, but this has been a full-on flurry of tariff threats, implementations, pauses, and ongoing uncertainty. It’s sufficient to see that the American agenda is and will have wide ranging effects this year and potentially beyond. At a minimum, we can attest that this is a huge distraction. Some clients have some anxiety and concern, which we can appreciate. The unknown and change are always a challenge to navigate. As much as the year has been uncertain in real estate, we do see signs suggesting that the competition in freehold housing will sustain and potentially grow. The condo market will continue to take time to settle and increase in value.
Our advice is to always focus on your needs and your ability to choose from the options you have. In time, we will have a clear sense of where we are, allowing people to move forward more confidently. The journey there (at any time) is unknown.
This, too, shall pass.
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.
