June 2024 Market Report
Hey Friends!
Summer is almost here!
Summer just happens to be the favourite season for the TO Group.
We absolutely love summer and we wait all year for the warm weather and long fun-filled days.
A few of the many things we love about summer:
- Ford and Chris just happen to both have birthdays in July
- Beach Volleyball
- (more) Jays games
- Golf
- An ice cold beer (or two) on one of Toronto’s many patios
Enough about us, let’s take a few minutes to give you another real estate update for June 2024
After what feels like months of waiting, the Bank of Canada has made their first decrease in the overnight lending rate. With a collective sigh of relief from many, the BoC decreased the rate by 0.25% on Wednesday to sit at 4.75%. While the decrease won’t have a huge effect on affordability, it is a sign that things are starting to move in the right direction.
Many expect the initial drop in rates to result in more decreases over the next year or so (possibly adding up to 1.5%).
Generally speaking, there is usually a bit of a delay before we start to see these changes take place in the market, so we’ll see how quickly things unfold over the next few months.
So what does this mean? Well, if you have a variable mortgage for $1,000,000 (using round numbers), your monthly savings will be approximately $155 with the decrease of 0.25% to the overnight rate. It sure doesn’t seem like a lot, but it all adds up! If anything, this will likely start to give buyers a bit more confidence in Toronto real estate and they will likely enter the market. Often when we see more buyers enter the market, we see more competition, and we see price increases.
If you have been waiting to purchase your first home, or an investment property, now could be a great time to put your plan into action! The rate cuts are good news for many and there are currently plenty of great opportunities out there that we don’t expect will last very long.
This could be one of the best times to purchase a home in the last few years. Reach out at any time to chat about what this could mean for you!
As the warm weather comes, the real estate market tends to slow. People start to focus their attention on summer vacations vs. buying their next home. This is exactly what we saw happen as May transitioned into June.
Overall, prices in the city of Toronto stayed relatively flat comparing May 2024 to May 2023, coming in 0.3% lower than the previous year. The biggest change that we saw was the decrease in sales by 17.8% year-over-year. Even more interesting is that new listings in the GTA were up 21% over the same time period, meaning that there were many more options to choose from than what buyers are used to. There is plenty of speculation out there as to why this happened, however the most popular opinion is that buyers are waiting for rates to come down further before going shopping. Many families are getting stretched financially due to inflation and the higher cost of living which doesn’t always align with a move.
We noticed that the freehold market moved more quickly than the condo market, especially if a home was newly renovated and checked all of the boxes. There are plenty of condos to choose from out there, so buyers have ample choice to find their perfect home or investment.
Check out the May year-over-year stats below for more information on the current market. If you would like statistics specific to your neighbourhood, an updated Comparative Market Analysis for your home, or help deciphering what the numbers could mean for you, please let us know and we would be happy to provide that for you.
2118 Bloor St W unit 402 is an absolute stunner!
Big, Bright, and Beautiful on Bloor St W! Welcome home to this luxurious retreat at Picnic condos, a boutique building in High Park! This oversized corner unit features a custom floor plan, ample floor to ceiling windows, and is beaming with natural light. The modern kitchen showcases Scavolini cabinetry, high-end european appliances, upgraded gas cooking, and sleek Caesarstone countertops, complete with a breakfast bar. The open concept living space is perfect for entertaining friends and family and includes a walk out to a private balcony featuring a gas line for a BBQ. The Primary retreat boasts a picturesque tree-top view, dual walk through closets with built-in shelving, and a spacious spa-like 4-piece ensuite. Steps to all of the amazing shops, restaurants, cafes on Bloor St W, TTC, and the sprawling 400 acre High Park!
Check out www.2118BloorWest.com for more info and photos!
318 King St E unit 801 is one of the best valued condos in Corktown!
Welcome home to boutique urban living at The King East. This Oversized 1-bedroom condo offers the perfect blend of modern comfort and convenience. Enjoy the open concept living space with approx 9′ ceilings and concrete accents for a super cool loft-style feel. Includes a large bedroom with plenty of closet space and natural light. The modern open concept kitchen features full-sized stainless steel appliances (including a gas range), stone countertops, and floor to ceiling windows. This beautiful residence features 600 square feet of awesome in addition to the spacious balcony – complete with a gas line for a BBQ and stunning city views. Within walking distance to everything you need – Distillery District, St. Lawrence Market, George Brown College, parks, some of the best restaurants in the East end of the city. Multiple options for commuter access and TTC – including the future Ontario Line station that will be completed across the street. Move in and enjoy everything that this beautiful residence has to offer.
Check out www.318king.com for more info and photos!
The Bank of Canada has the following rate announcements scheduled for 2024. Interest rates have an integral effect on how our real estate market operates so it will be interesting to see how things unfold as the announcements come.
- Wednesday, July 24
- Wednesday, September 4
- Wednesday, October 23
- Wednesday, December 11
We are looking forward to some summer fun, but keep in mind that the summer real estate market is often full of opportunity. Let’s chat about what opportunities we can find for you!
As always, we would be happy to help you and any of your friends, family, colleagues, or neighbours with real estate services or advice. If you can think of anyone that could use our help, feel free to make an introduction! We promise we’ll make you look good ;)
Cheers!
Chris and Ford
May 2024 Market Report
Hey Friends!
We are EXCITED to feel the warm weather and to see the beautiful trees and flowers blooming throughout the city. Neighbours are hanging out on their front porches again and we can’t help but notice that more people are smiling ?
The real estate market is active and homes are being bought and sold.
Let’s take a few minutes to give you another Real Estate update for May 2024.
The Government of Canada dropped a bit of a surprise on us all a couple of weeks ago in relation to Capital Gains Taxes in Canada. This resulted in a bit of a worried frenzy among investors, financial planners, and accountants. The toughest blow is that they aren’t giving our citizens much time to change their plans that have likely been in place for years.
In relation to real estate, if you dispose of your capital property that is NOT your principal residence, the current rule states that 50% of the gain is included in your taxable income.
The new proposed rule will be that 66.7% of the gain will be included in your taxable income, if the property is disposed of on or after June 25, 2024.
There are some differences between individuals vs. corporations and trusts. For individuals, the first $250,000 of a capital gain realized after June 25, 2024 will be taxed at 50% and anything over and above that will be taxed at 67.7%
We are seeing a lot of real estate investors rush to the market looking for a quick sale in order to avoid the increased tax. If you own a secondary property, let’s take some time to do some quick math before making a snap-decision.
Assuming that you are in the highest tax bracket at 53.53%, a capital gain of $350,000 would result in a difference of approximately $9,000 more out of pocket with the new rules vs. the old ones.
Although it’s not ideal, it’s likely not as bad as it sounds. Where it will have the largest effect will be on people who have held an investment property for more than a decade who have realized a larger gain over time.
Now, don’t freak out! If you had no plans on selling your secondary property, it may not make sense to get it sold before June 25, 2024 (or maybe not even this year at all!). If it was on your radar to sell it this year, it may be worth getting it on the market and sold before June 25.
Just reach out! We are here to help you walk through all of your options. It would also be a great idea to touch base with your accountant and/or financial planner :)
Remember, teamwork makes your real estate dream work!
The Buyers are out and the Sellers are more willing to list their homes for sale after seeing prices bounce back after the brief dip caused by the hikes in interest rates. April came and went and interest rates stayed the same. The next rate announcement is June 5th and there is plenty of anticipation on whether or not the Bank of Canada will start to drop the interest rates. We’re sure that a drop in rates would be welcome by many!
Year-over-year stats were relatively flat with slight increases of approximately 3% overall in the city of Toronto. We did however see a 6% increase in all home types in the city of Toronto comparing March/24 to April/24, which is not uncommon for a traditional spring market.
The number of sales were also down year-over-year which meant increased choice for buyers. This and an increased number of available listings has also helped to keep the prices flat.
Freehold homes continue to get more attention than the condo market, garnering more multiple offer situations and quicker sales. As always, a properly presented and priced property will still move in almost any market (we can help with this!)
Overall, we feel that this is a relatively healthy market and there isn’t as much tension compared to spring markets in recent years – a much more enjoyable experience for buyers and sellers.
Check out the April year-over-year stats below for more information on the current market. If you would like statistics specific to your neighbourhood, an updated Comparative Market Analysis for your home, or help deciphering what the numbers could mean for you, please let us know and we would be happy to provide that for you.
Welcome home to boutique urban living at unit 801 at 318 King St E, The King East, where style meets comfort in this impressive one bedroom condo. This residence offers an inviting open-concept living space with engineered hardwood floors, approximately 9-foot ceilings and stylish concrete accents, evoking a trendy loft-style ambiance.
The modern kitchen features full-sized stainless steel appliances, sleek stone countertops and a new subway tile backsplash. Floor-to-ceiling windows fill the space with natural light throughout the day with spectacular sunsets to follow in the evening.
The spacious bedroom boasts large closets for plenty of storage, engineered hardwood floors and frosted glass sliding doors.
Spanning 600 square feet of wonderful living space inside, this residence also features a generously sized balcony with the convenience of a gas BBQ, perfect for outdoor dining, entertaining friends or simply unwinding while taking in the city views.
Suite 801 also includes the added convenience of ensuite laundry, a large front hall closet and a locker.
Check out www.318king.com for more info and photos.
We have been blessed to have had the opportunity to help many of you and your people so far this year.
We truly appreciate your support and feel extremely honoured that you choose The TO Group to refer to your family, friends, and colleagues. Thank you!
Cheers!
Chris and Ford
June 2024 Market Report
Hey Friends!
Summer is almost here!
Summer just happens to be the favourite season for the TO Group.
We absolutely love summer and we wait all year for the warm weather and long fun-filled days.
A few of the many things we love about summer:
- Ford and Chris just happen to both have birthdays in July
- Beach Volleyball
- (more) Jays games
- Golf
- An ice cold beer (or two) on one of Toronto’s many patios
Enough about us, let’s take a few minutes to give you another real estate update for June 2024
After what feels like months of waiting, the Bank of Canada has made their first decrease in the overnight lending rate. With a collective sigh of relief from many, the BoC decreased the rate by 0.25% on Wednesday to sit at 4.75%. While the decrease won’t have a huge effect on affordability, it is a sign that things are starting to move in the right direction.
Many expect the initial drop in rates to result in more decreases over the next year or so (possibly adding up to 1.5%).
Generally speaking, there is usually a bit of a delay before we start to see these changes take place in the market, so we’ll see how quickly things unfold over the next few months.
So what does this mean? Well, if you have a variable mortgage for $1,000,000 (using round numbers), your monthly savings will be approximately $155 with the decrease of 0.25% to the overnight rate. It sure doesn’t seem like a lot, but it all adds up! If anything, this will likely start to give buyers a bit more confidence in Toronto real estate and they will likely enter the market. Often when we see more buyers enter the market, we see more competition, and we see price increases.
If you have been waiting to purchase your first home, or an investment property, now could be a great time to put your plan into action! The rate cuts are good news for many and there are currently plenty of great opportunities out there that we don’t expect will last very long.
This could be one of the best times to purchase a home in the last few years. Reach out at any time to chat about what this could mean for you!
As the warm weather comes, the real estate market tends to slow. People start to focus their attention on summer vacations vs. buying their next home. This is exactly what we saw happen as May transitioned into June.
Overall, prices in the city of Toronto stayed relatively flat comparing May 2024 to May 2023, coming in 0.3% lower than the previous year. The biggest change that we saw was the decrease in sales by 17.8% year-over-year. Even more interesting is that new listings in the GTA were up 21% over the same time period, meaning that there were many more options to choose from than what buyers are used to. There is plenty of speculation out there as to why this happened, however the most popular opinion is that buyers are waiting for rates to come down further before going shopping. Many families are getting stretched financially due to inflation and the higher cost of living which doesn’t always align with a move.
We noticed that the freehold market moved more quickly than the condo market, especially if a home was newly renovated and checked all of the boxes. There are plenty of condos to choose from out there, so buyers have ample choice to find their perfect home or investment.
Check out the May year-over-year stats below for more information on the current market. If you would like statistics specific to your neighbourhood, an updated Comparative Market Analysis for your home, or help deciphering what the numbers could mean for you, please let us know and we would be happy to provide that for you.
2118 Bloor St W unit 402 is an absolute stunner!
Big, Bright, and Beautiful on Bloor St W! Welcome home to this luxurious retreat at Picnic condos, a boutique building in High Park! This oversized corner unit features a custom floor plan, ample floor to ceiling windows, and is beaming with natural light. The modern kitchen showcases Scavolini cabinetry, high-end european appliances, upgraded gas cooking, and sleek Caesarstone countertops, complete with a breakfast bar. The open concept living space is perfect for entertaining friends and family and includes a walk out to a private balcony featuring a gas line for a BBQ. The Primary retreat boasts a picturesque tree-top view, dual walk through closets with built-in shelving, and a spacious spa-like 4-piece ensuite. Steps to all of the amazing shops, restaurants, cafes on Bloor St W, TTC, and the sprawling 400 acre High Park!
Check out www.2118BloorWest.com for more info and photos!
318 King St E unit 801 is one of the best valued condos in Corktown!
Welcome home to boutique urban living at The King East. This Oversized 1-bedroom condo offers the perfect blend of modern comfort and convenience. Enjoy the open concept living space with approx 9′ ceilings and concrete accents for a super cool loft-style feel. Includes a large bedroom with plenty of closet space and natural light. The modern open concept kitchen features full-sized stainless steel appliances (including a gas range), stone countertops, and floor to ceiling windows. This beautiful residence features 600 square feet of awesome in addition to the spacious balcony – complete with a gas line for a BBQ and stunning city views. Within walking distance to everything you need – Distillery District, St. Lawrence Market, George Brown College, parks, some of the best restaurants in the East end of the city. Multiple options for commuter access and TTC – including the future Ontario Line station that will be completed across the street. Move in and enjoy everything that this beautiful residence has to offer.
Check out www.318king.com for more info and photos!
The Bank of Canada has the following rate announcements scheduled for 2024. Interest rates have an integral effect on how our real estate market operates so it will be interesting to see how things unfold as the announcements come.
- Wednesday, July 24
- Wednesday, September 4
- Wednesday, October 23
- Wednesday, December 11
We are looking forward to some summer fun, but keep in mind that the summer real estate market is often full of opportunity. Let’s chat about what opportunities we can find for you!
As always, we would be happy to help you and any of your friends, family, colleagues, or neighbours with real estate services or advice. If you can think of anyone that could use our help, feel free to make an introduction! We promise we’ll make you look good ;)
Cheers!
Chris and Ford
May 2024 Market Report
Hey Friends!
We are EXCITED to feel the warm weather and to see the beautiful trees and flowers blooming throughout the city. Neighbours are hanging out on their front porches again and we can’t help but notice that more people are smiling ?
The real estate market is active and homes are being bought and sold.
Let’s take a few minutes to give you another Real Estate update for May 2024.
The Government of Canada dropped a bit of a surprise on us all a couple of weeks ago in relation to Capital Gains Taxes in Canada. This resulted in a bit of a worried frenzy among investors, financial planners, and accountants. The toughest blow is that they aren’t giving our citizens much time to change their plans that have likely been in place for years.
In relation to real estate, if you dispose of your capital property that is NOT your principal residence, the current rule states that 50% of the gain is included in your taxable income.
The new proposed rule will be that 66.7% of the gain will be included in your taxable income, if the property is disposed of on or after June 25, 2024.
There are some differences between individuals vs. corporations and trusts. For individuals, the first $250,000 of a capital gain realized after June 25, 2024 will be taxed at 50% and anything over and above that will be taxed at 67.7%
We are seeing a lot of real estate investors rush to the market looking for a quick sale in order to avoid the increased tax. If you own a secondary property, let’s take some time to do some quick math before making a snap-decision.
Assuming that you are in the highest tax bracket at 53.53%, a capital gain of $350,000 would result in a difference of approximately $9,000 more out of pocket with the new rules vs. the old ones.
Although it’s not ideal, it’s likely not as bad as it sounds. Where it will have the largest effect will be on people who have held an investment property for more than a decade who have realized a larger gain over time.
Now, don’t freak out! If you had no plans on selling your secondary property, it may not make sense to get it sold before June 25, 2024 (or maybe not even this year at all!). If it was on your radar to sell it this year, it may be worth getting it on the market and sold before June 25.
Just reach out! We are here to help you walk through all of your options. It would also be a great idea to touch base with your accountant and/or financial planner :)
Remember, teamwork makes your real estate dream work!
The Buyers are out and the Sellers are more willing to list their homes for sale after seeing prices bounce back after the brief dip caused by the hikes in interest rates. April came and went and interest rates stayed the same. The next rate announcement is June 5th and there is plenty of anticipation on whether or not the Bank of Canada will start to drop the interest rates. We’re sure that a drop in rates would be welcome by many!
Year-over-year stats were relatively flat with slight increases of approximately 3% overall in the city of Toronto. We did however see a 6% increase in all home types in the city of Toronto comparing March/24 to April/24, which is not uncommon for a traditional spring market.
The number of sales were also down year-over-year which meant increased choice for buyers. This and an increased number of available listings has also helped to keep the prices flat.
Freehold homes continue to get more attention than the condo market, garnering more multiple offer situations and quicker sales. As always, a properly presented and priced property will still move in almost any market (we can help with this!)
Overall, we feel that this is a relatively healthy market and there isn’t as much tension compared to spring markets in recent years – a much more enjoyable experience for buyers and sellers.
Check out the April year-over-year stats below for more information on the current market. If you would like statistics specific to your neighbourhood, an updated Comparative Market Analysis for your home, or help deciphering what the numbers could mean for you, please let us know and we would be happy to provide that for you.
Welcome home to boutique urban living at unit 801 at 318 King St E, The King East, where style meets comfort in this impressive one bedroom condo. This residence offers an inviting open-concept living space with engineered hardwood floors, approximately 9-foot ceilings and stylish concrete accents, evoking a trendy loft-style ambiance.
The modern kitchen features full-sized stainless steel appliances, sleek stone countertops and a new subway tile backsplash. Floor-to-ceiling windows fill the space with natural light throughout the day with spectacular sunsets to follow in the evening.
The spacious bedroom boasts large closets for plenty of storage, engineered hardwood floors and frosted glass sliding doors.
Spanning 600 square feet of wonderful living space inside, this residence also features a generously sized balcony with the convenience of a gas BBQ, perfect for outdoor dining, entertaining friends or simply unwinding while taking in the city views.
Suite 801 also includes the added convenience of ensuite laundry, a large front hall closet and a locker.
Check out www.318king.com for more info and photos.
We have been blessed to have had the opportunity to help many of you and your people so far this year.
We truly appreciate your support and feel extremely honoured that you choose The TO Group to refer to your family, friends, and colleagues. Thank you!
Cheers!
Chris and Ford
