For Buyers: 

• Panic buying is over (for now).  It is true however, that properties in great locations and with unique characteristics, are still driving more than one offer and selling above the asking price – and slightly above in some cases – so it is [yet and it always will be] advisable that you have your pre-approval in place and all your documents sorted out. That way you will be ready to move on once we find the perfect home for you.
• You have more choices. Although inventory remains low, or at least what we like to call “quality” inventory, and depending on your budget, Buyers can now explore the options out there, breathe easier and have more space to make a decision. 
• It is true that interest rates have largely affected the affordability of many buyers, but you still have the option to get into the market. You can now choose your rate (not a fixed one though) and go out to find your home.  As rent prices hit an all-time high, it is worth considering buying vis-à-vis the historical upward trend in Toronto real estate prices. 

For Sellers: 

• Forget about the value of your home or if you “missed” the train for not selling in February 2022. If you’re thinking about your home’s value based on what happened in the first quarter of this year, you are using an approach that will not help you to gain perspective of the market. We are certain that if you had the fortune of buying with us at any time in the last 10 years, you obtained the best price and conditions by the time you put your offer in. 
• Prices are solid and holding their ground because we are not being flooded with inventory and because our city drives most of the housing demand in Ontario. The adjustment in prices is temporary and you can congratulate yourself for owning a home in Toronto.
• If you are on a variable rate mortgage and have reached the threshold rate, cut on unnecessary expenses and adjust your finances to “ride the wave” for now. This too shall pass and the rates will not remain high forever. Trust the fact that your home is shielding you and your money from inflation and helping to create wealth for you and your family down the road.

There is confidence in our real estate market and we are confident in our market. Do not make any decisions without the right advice. We are your real estate advisors and part of your wealth creation team. Just reach out to us for guidance, we’ve got you covered.

Get expert insights on the current real estate market. Book a Discovery Call with our team today to discuss your specific needs and make informed decisions about buying or selling. If you want to stay updated on market trends or real estate advice, follow us on social media! 

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1. Although another small increase in the interest rate might happen, the worst is behind us as the peak of the hike has passed. There are signs that show the system and Canada will be able to remain resilient while inflation comes under control.
2. Given the short-term shock caused by the increased borrowing costs, some property price adjustments might continue happening depending on the location, amount of inventory available in that location and the type of property. 
3. We expect to see an increase in the demand for ownership, most likely after the first half of 2023, as the dust settles and immigration numbers continue to rise, with most people coming to the GTA, many of which are looking to buy.
4. The pressure on the rental market will continue in our city. So far we have seen a double-digit rent increase due to the growth in the demand caused amongst other things by the reopening of colleges and universities, the [partial] return to working from the office, as well as the return of some of the people that had left the core. In the condo market, the competition for rental units has intensified and multiple offers will most likely remain common. It will be interesting to see the dynamic of the market when renters decide to buy instead if the cost of rent continues to rise to a level where paying for a mortgage makes more sense.

Taking one day at a time, adjusting to the changes and keeping the right information at hand will help us all go through this time.

Keep calm: You are building wealth through Real Estate.

It is no secret that owning real estate and especially your principal residence is an asset that most people hold on to dearly and believe in as a wealth creating tool. The old saying that “location, location, location” is the most important aspect of a purchase, gains more strength as the market cycle moves along its stages, and particularly when it hits bottom. So if you’re looking to buy your first home, move up to a bigger one, sell your current home to “right-size” or invest on a property that generates income, make sure you pay close attention to the location.  

As inflation traces its way and while it’s put under control, be mindful that your property is shielding you from the loss of value. For instance $100,000 put in the bank would currently earn you anywhere from 2.5%-3.5% annually, 2 years ago would have earned you much less than that and with our current inflation at 6.9%, it has already eroded any gains you obtained. On the other hand, if you bought 2 years ago, put as part of the downpayment  on a property, those $100,000, have already outperformed any other investment. 

A couple of examples (using the Home Price Index – HPI as reference of increase/decrease in value):

For a condo bought in November 2020

• Purchase price: $800,000
• Downpayment: $160,000
• HPI for condos since November 2020: 29.37% (varies per neighbourhood)
• Price in November 2022: $1,035,000
• $160,000 put into a condo 2 years ago has generated 147%. ($235,000)

For a detached home bought in November 2020

• Purchase price: $1,500,000
• Downpayment: $300,000
• HPI for detached homes in Toronto: 8.8%
• Price in November 2022: $1,635,000
• $300,000 put into a detached home 2 years ago have generated 45% ($135,000)

BUT, most likely you did not pay cash for any of these properties. Let’s say you put a 20% downpayment and if that is the case your $160,000 in the condo has generated a whooping 147% ($235,000) and your detached home 45% ($135,000). You are combining appreciation with leverage, so your property has appreciated but the amount of cash has returned much more.

It may sound like a very basic calculation, but deduct the amount of interest paid through your mortgage, and even basic maintenance during this same period, and your investment is still generating gains. For a more detailed calculation, feel free to reach out!

For those who bought as the market peaked, you are also ok. Prices will continue to move up in the following years – most likely at a slower pace compared to what we experienced during the pandemic – but the strong demand for housing in our city will continue to be constant and one that will not allow prices to go back to much lower levels than what we are seeing today. 

If you own income-generating properties that are carrying themselves through the rent, you are doing well, you don’t need to care what the market does, your property will continue to appreciate and for all scenarios, while prices can change over a period of time, real estate values have gone up, ALWAYS. Or ask your grandmother about the property she bought in Toronto back in 1970.

When looked at as a long-term investment, real estate has never let us down. The upward trend in prices will continue and appreciation is one of the best ways to create not just wealth, but generational wealth.

Ready to make your move in the real estate market? Get a head start on your plans for 2023 by booking a Discovery Call with our team. During the call, we’ll discuss your specific real estate needs and help you understand what to expect in the market over the next few years. Don’t miss out on this opportunity to get expert insights and make informed decisions about your real estate goals. Schedule your Discovery Call today! If you want to stay updated and get the best tips about Toronto real estate in 2023, follow us on social media!

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The City of Toronto Garden Suites By-law is now in full force and this will now allow a greater variety in the type and form of housing that can be built as part of the City’s Expanding Housing Options in Neighbourhoods (EHON) program focused on missing middle housing and gentle intensification. Garden suites are not only a solution to increase housing choice for current and future residents, but can also provide help to homeowners to offset mortgage payments on their primary residences.

If a proposed garden suite meets various performance criteria, such as maximum building height and setbacks, as well as all applicable bylaw standards, only a building permit application is required.

Any garden suite proposal that does not meet the Zoning By-law requirements can seek a minor variance application at the Committee of Adjustment. Through that process, City Planning staff review the application to determine if the proposed variances are appropriate and meet the intent of the Official Plan policies and the Zoning By-law.

You are encouraged to check out the City of Toronto Garden Suites By-law to learn about the rules, regulations and key considerations in order if you wish to consider adding a garden suite to your primary residence.

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