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Essential Analytics - November 2023


The Toronto Regional Real Estate Board has recently published its market report for November 2023. Let's take a closer look at some of the key metrics and our expert takeaways you need to know about:

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Essential Analytics - October 2023

The Toronto Regional Real Estate Board has recently published its market report for October 2023. Let's take a closer look at some of the key metrics and our expert takeaways you need to know about:

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Essential Analytics - September 2023

The Toronto Regional Real Estate Board has recently published its market report for September 2023. Let's take a closer look at some of the key metrics and our expert takeaways you need to know about:

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Summer Market Reflections

We hope that everyone is enjoying a safe and happy summer!

As we soak up the remaining days of summer here are our real estate reflections:

In February 2022, the Bank of Canada, in response to inflation, began raising the bank rate from less than 1% to the current 5%. This interest rate hike spiked fear in the minds of many buyers who retreated to the side-lines in the Spring of 2022. As the buyer market softened, sellers who did not adjust their expectations were dismayed that they had missed the frenzied peak market prices. Some chose not sell and some sold for very reduced prices.

That said, we’ve seen some strong activity in certain pockets this past Spring. Bloor West was hot with new listings attracting multiple offers while other areas struggled. Why was this? Proximity to the subway? Price point? Style of home? It was an interesting phenomenon because, if higher interest rates had sent buyers to the side-lines, why were they buying in certain pockets and not others? It’s difficult to say for sure; however, this is where our market knowledge benefits both buyers and sellers. We helped both buyers and sellers achieve their real estate goals by knowing where to look for buying opportunities and knowing how to successfully prepare and market our seller’s homes.

Cottage country real estate has also experienced a change in activity. Buyer competition has cooled dramatically since the pandemic when people were fleeing the city for larger “work from home” spaces. We helped happy clients purchase their dream country farms and waterfront cottages and condos during that time. At the moment cottage country prices have softened and there are good opportunities for buyers seeking recreational properties to buy now during the slower summer market. As local realtors in cottage country, we can help you find the perfect getaway property for your family to enjoy for years to come as well as being a great investment.

So, what’s ahead? There are mixed messages. The signals from the Bank of Canada indicate that, although stubborn inflation is still present, they may not increase interest rates anytime soon; however, there is no guarantee if the economy doesn’t cool itself. The war in Ukraine is still a factor that drives prices, particularly prices associated with food and petroleum products. And, at home in the GTA, there is an unsatisfied demand for housing, particularly affordable housing, which continues to be fuelled by aggressive immigration policies. It’s truly hard to imagine that house prices will not continue to rise over time as the GTA market has historically proven, regardless of occasional downturns.

The only thing we know for sure is that real estate is not an exact science. Every home is unique as is every client who has a unique set of circumstances and the market is continually recalibrating. Dave and I do not have a crystal ball (well, we actually do but, we cannot read the future with it). However, we do watch the market closely and pivot quickly to adapt and advise our clients appropriately in real time.

As Fall approaches, we anticipate an increase in market activity. If you are considering a move this Fall, please give us a call to chat about your real estate objectives. We have recently helped other clients achieve their real estate goals and we would be happy to assist you as well. Please take a moment to review our sales and what our clients are saying about us.

The Fall Home Show at the Enercare Centre is happening September 29 - October 1, 2023. Please reach out if you would like two tickets to the show. 



Sales




Testimonials


The process of selling our 30+ year family home could not have been better managed than in the caring hands of Nancy and Dave. 

Kudos for their efforts in the dead of winter to effectively market and sell our property in a short period of time. 

The transition to condo living began with the discovery of a unique property that fit all of our needs. With Nancy and Dave’s expert sleuthing and quick action we were able to purchase this jewel in record time!

We can’t say enough about their tenacity, empathy and professionalism at all times. It was easy to hand them the reigns with confidence.

Thank you Nancy and Dave!

 B & J Sutherland | Mississauga



This year we purchased our first home with the help of Nancy and Dave and we couldn’t be more happy with their services! They were patient, knowledgeable, and extremely diligent in making sure we found a place that met our needs and budget. We really lucked out and they got us an amazing deal on a place that far exceeded our expectations. Thanks to them we are now living in our wonderful new home and have appreciated their support throughout the entire process.

Rhian & Adam | The Kingsway





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Essential Analytics - August 2023

The Toronto Regional Real Estate Board has recently published its market report for August 2023. Let's take a closer look at some of the key metrics and our expert takeaways you need to know about:

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Essential Analytics - July 2023

The Toronto Regional Real Estate Board has recently published its market report for July 2023. Let's take a closer look at some of the key metrics and our expert takeaways you need to know about:

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Essential Analytics - June 2023

The Toronto Regional Real Estate Board has recently published its market report for June 2023. Let's take a closer look at some of the key metrics and our expert takeaways you need to know about:

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Essential Analytics - February 2023
The Toronto Regional Real Estate Board has recently published its market report for February 2023. Let's take a closer look at some of the key metrics and our expert takeaways you need to know about:
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Essential Analytics - January 2023

The Toronto Regional Real Estate Board has recently published its market report for January 2023. Let's take a closer look at some of the key metrics and our expert takeaways you need to know about:

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New legislation enacted to cool the housing market - Will it work?

As of January 1, 2023, two new government programs came into effect with the intent to cool the housing market and provide more affordable housing.


The first program is Toronto’s Vacant Home Tax which is an annual tax that will be levied on vacant residences. A property is considered vacant if it is not used as a principal residence, occupied by a permitted party or is left vacant for 6 months or more during the previous calendar year. Those residences subject to Vacant Home Tax will be taxed at a rate of 1% of the property’s 2022 Current Value Assessment (CVA).


The intent of the Vacant Home Tax is to increase the supply of housing by discouraging owners leaving any secondary residences that they own vacant, rather than leasing them. All residential property owners in Toronto will be required to declare the status of their property (s) annually, even if they live there. Residences should have received notice in the mail from Toronto revenue Services. The declaration must be submitted by February 2, 2023.


Will speculative real estate investors sell their vacant properties? In February 2021, the Toronto Regional Real Estate Board (TRREB) released a report in which 40% of investors surveyed indicated that a Vacant Home Tax would prompt them to sell their investment properties. However, we have seen a strengthening in the rental market and higher rents, which may encourage investors to hold onto their properties throughout 2023 and wait for sales market prices to regain strength. Therefore, there may not be an influx of homes or condos listed for sale, and rent prices may continue to increase due to lack of affordable inventory to purchase - not the results many had hoped for. Foreign investors may just absorb the tax costs as part of doing business and live with the Vacant Home Tax just as every Toronto home purchaser has learned to live with the Toronto Land Transfer Tax, which is paid in addition to the Ontario Land Transfer Tax, as part of closing costs associated with choosing to live in the city.


The second program is the Federal Prohibition on the Purchase of Residential Property by Non-Canadians Act. This legislation will restrict anyone who is not a Canadian citizen, permanent resident or foreign commercial business from purchasing a residential property for the next two years. This marks the start of the federal government’s attempt to cool speculative foreign purchasing that is believed to be responsible for driving up the housing prices across the country, particularly in larger cities like Toronto and Vancouver.


Restrictive measures have been utilized in the past with limited results. In April 2017, the Ontario government implemented the Ontario’s Fair Housing Plan (HFP), a comprehensive package which included measures intended to help more people find affordable homes, increase supply, protect buyers and renters and bring stability to the housing market. It included a 15% Non-Resident Speculation Tax (NRST) on the prices of homes in the Greater Golden Horseshoe (GGH) purchased by individuals who were not Canadian citizens, permanent residents of Canada or were foreign corporations. This was meant to discourage speculative purchasing by non-residents. The implementation of this plan did result in a reduction of foreign buyer purchases from approximately 5-10% in 2017 down to 1.8% by 2019, varying from region to region. In October 2022, the NRST increased to 25% to further discourage foreign buyers.


What overall impact did the FHP have on house sales and sales prices? TRREB postulated that the psychological effect associated with the FHP contributed to an 18% decline in home sales in 2017. There was, in fact, a flattening of home sales through 2017 with the average sale price for a home coming in at $750,000. However, that did not last long. The previous upward trend in prices returned in 2018 and accelerated during the pandemic in 2020, hitting an average peak price of approximately $1.2 million in early 2022. It took a huge turn of events such as the war in Ukraine, rising interest rates and inflation to stall the climb in prices. In December 2022, TRREB reported that the average home price was $1,079,000.


Given that the real estate market has already experienced a reduction in non-residential purchases, there may be very little further impact on the housing market as a whole. Also, we cannot lose sight of further implications that the Purchase of Residential Property by Non-Canadian Act may have on our overall economic wellbeing. The Canadian Real Estate Association (CREA) stated, “Parliamentarians that supported the introduction of these measures need to recognize they will have a detrimental impact of Canada’s reputation, labour market, economy and severely hinder our ability to attract global talent”.


These two new legislative measures may not significantly impact housing availability or affordability. Time will tell.


If you have further questions about any information discussed in our BLOG please reach out to us and we will be happy to answer your questions.
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Essential Analytics - November 2022
The Toronto Regional Real Estate Board has recently published its market report for October 2022. Let's take a closer look at some of the key metrics and our expert takeaways you need to know about:
 
 
 
 
 
 
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