Bank of Canada cut its benchmark rate for the 7th time down to 2.75%, fixed mortgage rates have come down from the peaks of 2023, yet the real estate market is stuck. If we were living in normal times, the real estate market would take off.....but the T word has frozen the market and to certain extent the economy.
Glass Half Full
If your employment or business is secure, there are buying opportunities: less competition and lower costs of borrowing.
Glass Half Empty
If you are in the automotive sector, steel, aluminum or a potentially tariff targeted sector, prudence is the best approach. Until we have our Federal election and the government negotiates a trade deal with the US, it's best to take a wait & see approach.
Move Up Buyers
This is an opportunity for move-up buyers: selling the smaller asset to buy the bigger home as there is less competition and lower interest rates as long as employment/business is safe.
Condo Owners
Sorry there aren't good news for another couple of years when the shortfall in building starts catches up to the marketplace. If you need to liquidate, the question is what are you willing to walk away with.
Home Sellers
It needs to be 10 out 10. Declutter, stage, paint, needs to look pristine and price based on local market conditions (not 2021 prices). Buyers are fickle and in some sub markets/locations have lots of choice.
My Perspective
This is a good balanced market. Last few deals were negotiated back and forth with conditions as the way it should be and homeowners are getting reasonable interest rates.
I believe sellers/buyers will jump back into the market once a negotiated trade deal is in place. Many understandably sat on the sidelines for the past 2 years due to higher interest rates. Reasonable interest rates and economic certainty will have a positive effect on the real estate market.
What do you think? Let me know.
Real Estate Market Insights
On a macro level, March sales across the GTA were down 23.1% compared to March 2024 (5011 vs. 6519) with a lot more supply of properties for sale: New listings up 28.6% and active listings up 88.8%.
The Toronto Regional Real Estate Board (TRREB) includes 7 regions (see image below). It's difficult to paint the whole market in one brush as local pockets are experiencing different levels of activity.
If you are looking for market activity for a specific location and type of property, reply and I will provide micro data relative to your local pocket.
Contemplating making a move up from your current home? Reach out if you would like to understand your buy/sell scenarios.
Image courtesy of TRREB
Important Dates
April 15: Inflation Report 💰
April 16: Bank of Canada Interest Rate Announcement 📈
May 9: Jobs Report 💼
Vacancy Tax Reminder
A reminder April 30 deadline is approaching for the City of Toronto. Make sure you file prior to the deadline and keep a print out of the completed filing. Last year, some residents were charged in error the vacancy tax and it took months to resolve due to the City's backend system issues. Click on the link below to complete your filing.
Note this year the vacancy tax is at 3% of property assessed value.