Toronto Real Estate: Time to Buy or Bail?

Well, I was wrong. Last week I predicted that rates were going to hold.

But I take comfort in that many economists I respect were also wrong. Ha!

Anyway, some of you really enjoyed throwing that in my face last week as if I’ve never been on the ball with other calls and trends. Lol. You all crack me up.

Looking back, I understand why the increase happened. Perhaps I was too narrow in my view and should have looked at the broader picture. A lot is going on in the world, from increasing oil prices to the upcoming shortage of fresh fruits and vegetables due to the Florida situation and rising rents here in Toronto, so putting all of that together, the hike was necessary to get ahead of what’s to come.

When rates started coming up a year ago, I said it was too late. They should have started earlier.

Well, the same logic can be applied here. Sure, they could have waited for another month’s inflation numbers to come in, but would that then be too late?

Perhaps.

Will we see another hike in July? Maybe.

Will that affect your real estate holdings in the short term? Likely.

Does that matter?

No.

Why?

Because as I’ve said countless times before, Real Estate is a long-term investment and should only be bought if you’re ready to hold the asset long-term.

Which is what most people do.

Does that mean you shouldn’t exploit the market when it’s running hot?

Of course not!

But you should always plan and budget for the long-term hold. That’s what smart, strong and successful investors do.

But I digress.

Buyer sentiment was already weakening before last week’s rate announcement. And the hike did have some people a little scared. After three consecutive holds, this hike removed the air of certainty that many were flying high on.

And if we look at sales from last week, we’re down pretty much across the board. But more dramatically in urban condos.

Condo sales were down 20.8%, while listings were up 6.7%. Not the best trend at the moment for eager condo Sellers, as we’ve now seen a 16.4% surge in condo listings in just under one month.

So at this point, if you don’t need to sell your urban condo, I’d hold off for now until supply pulls back a little. But remember, there are still folks with locked-in pre-approvals with lower rates that need to buy, so it’s not that dark yet.

So what will the next few weeks or months look like?

Unsure exactly, but we’re likely on the cusp of that summer lull I’ve been harping on about. Time to take a step back and chill for the summer if you don’t need to be in the market.

But I suspect there will be some good opportunities for cash-heavy investors as some spooked and overleverage rookie investors don’t have the stomach for these swings and are considering selling.

Still amazing opportunities in the condo assignment world and in the multi-plex market for homes with three or more units.

I need to keep this week short as I have a lot on my plate today, but happy to keep the convo going, so DM, PM, Email or text, and we’ll talk.

And if you’d like to book a call to discuss your specific real estate needs, you can do that here, and I really look forward to helping you.

Have a wonderful day, and I’ll see you next week. Don’t forget to subscribe to the blog so you get this in your inbox asap, and we’ll see you on Youtube!

(please subscribe to the YouTube Channel here, where I go over all of these reports in more detail)

 

Urban Markets: Downtown & Surrounding Areas
House Average Price: $1,665,685
House Median Price: $1,510,000
528 Active Listings
89 Firm Sales This Week
Months of Inventory (MoI) ~ 2.37(up from 2.04 last month)
Average Days on Market ~12.07

Condo Average Price: $916,230
Condo Median Price: $740,924
1775 Active Listings
114 Firm Sales This Week
MoI ~3.16  (up from  2.81 last month)
Average Days on Market (DOM) ~17.89

Urban North: Rosedale, Deer Park, Moore Park, Forest Hill, & Lawrence Park
House Average Price: $3,798,227
House Median Price: $2,700,000
151 Active Listings
11 Firm Sales This Week
MoI ~ 3.47(up from 3.11 last month)
Average Days on Market ~ 9

Condo Average Price: $1,669,344
Condo Median Price: $1,328,750
216 Active Listings
16 Firm Sales This Week
MoI ~ 3.99 (down from 4.05 last month)
Average Days on Market ~ 26

Leaside, Davisville, Yonge & Eglinton
House Average Price: $2,612,571
House Median Price: $2,750,000
48 Active Listings
11 Firm Sales This Week
MoI ~ 1.57  (up from 1.43)
Average Days on Market  10

Condo Average Price: $672,780
Condo Median Price: $612,500
128 Active Listings
10 Firm Sales This Week
MoI ~ 2.32 (down from 2.75 last mth)
Average Days on Market ~ 12

Birch Cliff
House Average Price: $1,427,167
House Median Price: $1,525,500
28 Active Listings
6 Firm Sales This Week
Months of Inventory (MoI) ~ 1.63 (down from 1.76)
Average Days on Market ~ 7

Kingston Rd Corridor to Highland Creek
House Average Price: $1,495,111
House Median Price: $1,305,000
85 Active Listings
9 Firm Sales This Week
Months of Inventory (MoI) ~ 2.14 (up from 1.71)
Average Days on Market ~ 17

Condo Average Price: $551,386
Condo Median Price: $549,900
48 Active Listings
7 Firm Sales This Week
MoI ~ 2.46 (down from 3.30)
Average Days on Market ~ 28

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