Well, it’s been a year! For the first time in a long time our first response when it comes to Toronto Real Estate is not “it’s bonkers out there!” 

For the most part we saw a general slowing of the market, which is not a bad thing. The rate in which prices were increasing and more so, the means by which some people felt compelled to go about buying a new home was becoming unsustainable and in some cases pretty risky. 

We walked into 2023 with yet another rate hike of 25 basis points which proved to have the desired effect of cooling the housing market for the beginning of the spring. A rate hold in March and April had buyers jumping back in, resulting in a return to bidding wars and prices trending upwards. This put pressure on inflation and was cause for the Bank of Canada to raise rates twice more in June and July. These rate increases have proven to force many of us to watch our pennies a little closer. 

The final 3 rate announcements of the year saw the BOC holding the prime rate at 5.25% These latest holds are positive news, it’s true we are all feeling the pinch, but it hasn’t had the same effect on the market as the previous holds had. There was certainly some hesitancy from both buyers and sellers toward the end of 2023, the question is will this climate end in pent up demand or continued trepidation?

There is much speculation as we ease into 2024. Many of these predictions depend on how the economy fairs going forward and the direct impact of inflation and interest rates. 

We still haven't found that crystal ball but we do believe amid challenges, our city continues to showcase its enduring appeal, with a dynamic interplay of supply and demand. 

Regardless of which direction we go, here at LTHome we understand that personal circumstances play the biggest role in our clients' needs or desire to move. Trust that we have the time, experience and knowledge to help you through a successful Real Estate journey regardless of the outside noise. 

We are always happy to sit down and strategise the best options with you, regardless of if that means we take the “wait and see” approach, the “hustle now” approach, or something comfortably in between.

After a start like no other in 2022, the second half of the year was a little less appetizing - or was it? It all depends on how you look at it, which side of the fence you’re on or if you’re just sitting on that fence waiting to see what everyone else is going to do (you’re not alone!) 

​For many, many years there have been escalating complaints about Toronto’s Real Estate market. It’s fast pace and often seemingly unfair antics required just to get your foot in the door - and that foot generally cost you an arm and a leg! 

​We’ve started to see a decline in prices while interest rates and the cost of living rise across the board. Let’s not negate the fact that this has put many in a difficult position but the reality is, and always has been, for the most part Real Estate is a long game. 

There was a very short period of time where the short game was profitable, but that, along with early 2022 prices and uncharacteristically low interest rates were not sustainable.  Yes, prices have come down and interest rates have gone up. 

So where does that leave us for 2023? 

The LTHome Collective has taken out their crystal ball and here’s what we see; Currently, this is a great time to look at your options for a move if that’s one of your 2023 goals. When you are buying and selling in the same market it actually makes better financial sense to do that in a declining market rather than an inclining one. Reach out, we’re happy to explain how!

That said, based on looking at the data, dissecting the media reports and our feet on the ground, our guess is that this declining market is going to be short-lived in Toronto. It’s possible the forecasted recession becomes a looming reality and this opinion shifts but in the first couple weeks of January we are already starting to see multiple offers (bidding wars) and “Sold over asking” becoming common again.

It comes down to simple supply and demand (still!) Many would-be sellers are holding tight because they feel they’ve “lost value” with declining prices.

This might be true in the short term but in most cases if those sellers bought in 2021 or earlier, they haven’t lost anything. This lack of inventory for the buyers means the buyers have to fight for what is on the market. Many buyers took to the sidelines when prices began to decline waiting for “the bottom” (we’d love for them to let us know when that bottom happens because we fear it's here!)

However, all the buyers that were pushing prices up in early 2022 did not all buy and settle into a new home. As they slowly re-enter the market along with the return of immigration that was somewhat on hold through the pandemic, the fact that Toronto is a world-class city and appealing to many, chances are, the market will be relatively stable going forward if it doesn’t just take off again.

For us here at LTHome, we optimistically welcome a stable market but with the experience, knowledge and expertise along with a great group of professionals we can rely on, our Collective is confident in helping our clients navigate any market, even one in the throes of constant change! It’s such a better way to do business when everyone gets to walk away from the table feeling good about their Real Estate experience and that’s always what we strive for.

If you’d like to discuss the market and dig into the stats for your specific property or area, we’re always excited for an opportunity to connect with you!