Market Correction – Buyers Getting The Upperhand
The stats have been misleading for those of us on the ground. The most current real estate stats are just beginning to reflect what we are seeing on the streets.
The key in a transitioning market is to be nimble and flexible and pivot before your competitors. Don’t follow the market down. We can talk about how to do that if you want to sell and/or buy.
BoC has stated that we are unlikely to increase overnight lending rates again. The question now becomes when the lending rates will go down and by how much. We expect that homeowners should get comfortable with a mortgage rate in the 5.5% range in the years to come. Gone are the days of 1.5-3% range.
We encourage our current and past clients to plan for historical norms (5.5%) in the coming years. The average consumer would have you think there is a possible return to the unprecedentedly low-interest rates; we don’t see that happening any time soon.
Luxury Toronto Land Transfer Tax Increase – $3 Million & Up
This will only affect purchases within the City of Toronto over $3 million in value as of January 1st, 2024. It is a set of stepped increases over the previous amounts, including over $10 million in purchase value. You can see the implications on the City of Toroto’s Land Transfer Tax Calculator here.
TRESA – Professional Standards Changes
Client Representation remains. Customer agreements have been replaced with “Self-Represented Party” – similar to Customer service, we don’t see why anyone would want to go this route. It offers the consumer no protections. Our duty is to assist, but we cannot advise in any manner.
Moving forward, we will be acting as a Designated Representation Brokerage, whereby Multiple Representations in multiple clients represented within the brokerage can be more easily avoided and can be better handled from a legal standpoint.
Sellers now have a Disclosure Form allowing them to share specific contents of competing Buyers’ offers with all parties. We cannot see many reasons a Seller would choose to do a more open bid process. We have formulated a way to best protect our Buyer’s offers with some customized clauses to safeguard their private information and not be at a competitive disadvantage when competing with other Buyers for a property.
Happy Holidays & Happy New Year!
We are so very grateful for all of our client’s support over the years. This was once again a year to give thanks for all of the opportunities to service our clientele. We are here and looking forward to staying in touch in 2024. May you and your family have a wonderful holiday season and a happy new year!
Toronto Real Estate Market Report – November 2023
November 2023 has been quieter than expected. The sales stats are far different than our experience on the ground. The sales numbers have come in, and we have seen a large drop in total sales, in fact, the lowest tracked number of sales we have seen in over two decades at the Toronto Regional Real Estate Board. There were only 772 sales. Our overall annual markers will provide a better sense of value increase, which you can reach out to us here to discuss.
Detached Home Values
There were 153 sales in central Toronto in November 2023. The average home sold for $2,265,153, Up 10% since November 2022. The average home was on the market for 20 days – below the Toronto average days on the market – this tells us that active buyers want to buy today despite the slumping sales prices.
Semi-Detached & Townhouse Values
There were 172 sales in central Toronto in November 2023. The average home sold for $1,311,655, down 3 % since November 2022. The average home was on the market for a relatively short time of 22 days compared to the TRREB days-on-market average.
➤ Check out our top reads for anyone thinking about living in Toronto:
- Why Parents Should Invest In Toronto Condos For Their Children
- This Is the Year For Buyers To Buy In Toronto
- Selling A Home In Toronto
Toronto Condo Values
There were 483 condo sales—the average central Toronto condo sold for $804,634, down 3% from November 2022. The average condo was on the market for 23 days – this is a decrease of days on the market compared to the previous month. Note that the correction has not impacted Toronto condos as much as the freehold housing market.
Contact us here and read through our blogs to learn more about Toronto real estate.
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