Coming off of some pretty wild months in real estate, we thought that is was time to give you a little run down on the current landscape of the Toronto + GTA Real Estate market.
As realtors working in the field every day, we see beyond what the stats can tell you, so heres the tea.
Year Over Year.
Not much of a surprise, home prices are up across the board in Toronto and the GTA over July of last year. As a whole, the GTA is up 17% in sales prices year over year; While Toronto is up 5.6% over last year. The average sales price in both areas being over a million dollars. Also important to note – York region saw a 13.5%increase, and Durham region saw a whopping 33.7% year over year price increase, likely due to the increased demand for affordable homes and outdoor space.
So what do these statistics mean? Speaking as active agents in the market we can say that the trends of this past year have remained fairly consistent. While things may have slowed slightly as we entered the summer months, we are still seeing a lack of inventory and high demand, particularly in the lower price points (under $1 million).
This means that bidding wars are still going strong, days on market remain low, and over ask sales are commonplace.
When it comes to new development, we are seeing a focus on smaller and higher density projects (apartments, condos + townhomes) With so many buyers feeling priced out of the market, there is a need for not only inventory, but affordable inventory. With the cost of detached homes becoming increasingly expensive, builders are revving up construction on condos and townhomes in order to produce higher volumes and lower price points.
Buying via Bidding Wars.
Buyer Fatigue is real and we feel you. We hear stories on the daily of clients + friends or people that they know feeling defeated by the market after offering time and time again and being outbid. Being a buyer this past year has been hard, no doubt about it. While we have seen success for most of our buyer clients this year, we have also had to manage expectations of others or encourage them to pivot their approach.
For first time buyers especially, we don’t like to be the ones to crush dreams, but it is so important to understand that your first purchase will likely not be your dream home. Know that getting into the market is key.
Your first home may not be your “forever home” but it can be an incredibly valuable step in getting you there in the future.
Compromise can be the answer to being a successful buyer in todays market. Have an open mind and explore options, you may be surprised what awesome opportunities are outside of your current comfort zone!
Want to know how to win in multiple offers? Click here!
Selling in a Hot Market.
Okay sellers… we know, its been a pretty hot year for you! If you have sold your home recently, theres a good chance that you cashed in beyond what you had previously thought possible, so to you we say congratulations! It’s pretty clear in looking at the stats that if you have a good product and it is priced appropriately, homes are selling and sellers have been in the drivers seat.
While this is an exciting time for homeowners and many have been tempted to sell, before you do, take a moment to consider where you’re headed.
Because one thing that we know to be true is that buying and selling will always be relative to the market.
If you buy low, you will generally sell low, and if you sell high, you will probably have to buy high. And while there are occasionally those friends that hit the right timing and bought low and sold high- thats an unrealistic expectation to have unless you are downsizing or moving to a different region. So before you cash in on what seems like a jackpot sellers market, have a plan as to where you plan to go next!
As for if it’s still a good time to sell, yes, it is! Summer months are traditionally slower in the real estate market, however with many of us still unable to travel and an ongoing case of high demand, low inventory, Sellers are still in a very strong market.
Depending where you are at in your investing career, this past year could have been filled with exponential growth or a tricky hunt for a half decent deal. If you are the latter of the two, not to worry, there are ALWAYS good deals out there. It may take time, it may take adjusting expectations, it may mean a pivot to your investing strategy, but they’re out there!
When it comes to a classic single family home, buy+hold property, just like the many buyers looking for houses to call their own; you may feel defeated or priced out of the markets that you have been looking in. Our advice… Stretch your boundaries. If you are committed to a home of this nature, travel a little further, explore new towns and cities, you may be surprised at what you can find! If you still feel priced out, guess what, you aren’t alone! Maybe it’s time to consider a partnership or REIT as an alternative way to invest in real estate within your budget.
None of those options float your boat? Pre-construction is as hot as ever! If you have some capital on hand to cover the deposits, this is a great investment strategy for investors of all levels. Start putting your money into a project that you believe in and watch it appreciate before you even have the keys in hand! We are seeing so many great projects pop up in Toronto and the GTA, its simply a matter of finding the right one for you!
Check out our pre-construction page where we post a selection carefully selected pre- con projects .
Leasing In A Competitive Market.
We run into the scenario all the time, client’s looking for leases, believing that they have the upper hand and can drive the narrative of the deal. Unfortunately, that really isn’t the case right now.
While there was a moment in the rise of covid cases and air bnb laws being enforced, that we saw a Tsunami sized wave of rental units hit the market. This lead to more negotiation, incentives, lower prices, and overall a much more accessible rental market for good lease candidates. While many people still expect that market when looking for leases today, it simply doesn’t exist anymore. As with any market there are always unicorns, but overall we have seen in increase in demand – leading to the return of bidding wars fierce competition and increasing rental rates.
Not only have leases re-entered the battlefield of bidding wars, but Landlords are even more selective since the pandemic and when they say “Seeking AAA+ Tenant”… they really mean it. We’ve seen the selection process grow tighter and unfortunately if you have a poor credit score or lower income, it is incredibly difficult to secure a lease in the GTA. If you’re considering leasing, take the time to prepare your application package and consider a co-signer if you don’t show as an ideal candidate on paper. And as with anything, maintain realistic expectations about what it is that you will be able to shop for based on your budget and qualifications.
Wondering what the market has in store? We would love to chat! Contact us anytime!