condosandcastles

The GTA resale housing market activity was muted during August due to a seasonal lull in sales during the second half of the summer and as buyers awaited the Bank of Canada’s last interest rate decision on Sept 06th, a rate hold, following its July increase to a 22-year high of 5.0%. This is your recap of the August stats followed by my thoughts and analysis of what is going on in today's residential real estate market. 

If you are planning on entering the real estate market soon or are currently a homeowner, it’s important to follow along with the Bank of Canada’s rate announcements. These rate changes will have a direct impact on the housing market and housing affordability. You’ll be able to manage your expectations of the housing market better and make better decisions when it comes to your home ownership journey and budget.

The next announcements are Oct 25th and Dec 6th. Buyers should be in the market today taking advantage of the current rate hold and looking for those opportunities that exist. Take advantage of First Home Savings Account (FHSA)

September numbers won't be in until the first week in October but I'm seeing a similar pattern play out; softer prices and lower sales volume than seasonal normal. The fall market is the 2nd busiest market.

Affordability will remain a hot topic and controversial issue heading into the fall market. 

On Sept 21st Finance Minister Chrystia Freeland tabled new legislation to implement the promised removal of GST from new rental developments, and to revamp Canada's competition laws, framing the bill as a package that will result in more affordable housing and groceries, eventually.

Key takeaway:

The longer interest rates remain high, the more upward pressure there will be on listings as homeowners face difficulties managing their finances. So far, banks have been very accommodative with borrowers by allowing them to extend out amortizations. However, as more mortgages come up for renewal, more supply and motivated sellers can be expected to arrive on the market. While prices will be supported by demand fundamentals remaining strong due to record high population growth and supply being in a structural deficit, some further downward pressure on prices is possible in the near-term.

That's it for this episode of the Real Estate Podcast with me, Nico James-Bock, a broker with Royal LePage Signature Realty in Downtown Toronto. You can always review the charts posted to my various channels, call me when you feel the need, and/or fire off a quick text or email. 

Ciao Ciao

Helping you increase wealth through #realestate
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Canada's inflation rate reversed its brief cooling trend last month and moved higher, to a 4.4 per cent annual rate.

Economists had been expecting new data released by Statistics Canada to show the cost of living had eased from March's 4.3 per cent pace to something around 4/4.1 per cent. 

Instead, it moved higher again, as the cost of things like gasoline, rent and mortgages increased during the month.

This increase in the inflation rate will not come as welcome news to the BoC, which has been raising its interest rate aggressively since March 2022 wrestle down the inflation rate to a more palatable 2 or 3 percent.

Welcome to another episode of The Real Estate Podcast with me, Nico James-Bock, a Broker with Royal LePage Signature Realty in Downtown Toronto. Pay close attention to my 10 takeaways.

In summary, based on the information we have, combined with the historical data we study, the adage, “When’s the best time to buy real estate...yesterday”, still rings true. This is no blip. We will continue to see this inflation dance as the powers that be try and wrestle it downwards. From my personal and professional experience, the sooner you enter the market with a long-term view, the better your results. First-time Buyers and most Renters*: Get off the fence! Take advantage of opportunities in the assignment and pre-construction markets now! 

As for existing homeowners and investors, patience continues to be profitable, and will likely do so for many years to come.

Caio ciao

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It has been just over a year since the BoC started hiking interest rates. While the economy has remained very resilient, the housing market has undergone significant changes. There is a rapidly growing housing shortage. As population growth remains strong and immigration targets rise, new home construction cannot keep up with the demand, putting pressure on prices. Demand for rental properties is also surging, and rents have risen sharply for new tenants. In this episode of The Real Estate Podcast with me, Nico James-Bock, a Broker with Royal LePage Signature Realty in Downtown Toronto, here are the 5 things YOU need to know about today's GTA residential real estate market:

1. The GTA Is In A Sellers Market
2. Prices are trending upwards...at a more moderate pace
3. Inflation is trending downwards
4. Low Inventory Attracting Many Buyers...if the conditions are right
5. Immigration Levels are way up

A seller's market is a market condition characterized by a shortage of goods available for sale, resulting in pricing power for the seller. The main shift we’re seeing as a result of the many interest rate hikes beginning in March of 2022, is that sellers are not yet in a position to dictate price, like they were during the pre-pandemic years and briefly at the beginning of 2022 (Nov 2021- Feb 2022).

The Toronto Regional Real Estate Board reported 7,531 sales in April 2023, down by 5.2 per cent compared to April 2022. In comparison to March 2023, sales increased on an actual and seasonally adjusted basis. New listings were down by 38.3 per cent on a year-over-year basis. The average selling price in the GTA was $1,153,269 in April, down 7.8 per cent compared to $1,250,704 in April 2022. 

The average selling price also increased compared to this past March. TRREB Chief Market Analyst Jason Mercer has stated that demand for housing has picked up relative to supply, therefore, we are seeing renewed upward pressure on home prices. For a short period of time, higher borrowing costs trumped the impact of the constrained housing supply in the GTA. Renewed competition between buyers is once again shining the spotlight on the persistent lack of listings.   

With the renewed demand for resale homes, buyers have now begun to take a closer look at the option of purchasing new construction, residential low rise and high rise developments.  New construction has been a great way for buyers to get into the market as the deposit structures are spread out over the construction life cycle of the development.  

That's it for today's episode. As always you can reach out to me through any of my channels.


Ciao :-)

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In this episode of the Real Estate Podcast with Nico James-Bock,  seven condo and 3 castle (freehold) pre-construction projects will be presented:

The CondoWiz™Top 10 Pre-Construction GTA Projects: 

1. AKRA Living -  Curated Properties - Yonge St & Eglinton Avenue East 
2. Kipling Station Condos - CentreCourt - Dundas St W & Aukland Rd (just west of Kipling Avenue) at the Kipling Mobility Hub
3. Lansing Square  - Almadev - Sheppard & Hwy 404
4. Raglan House - CamrostFelcorp - Bathurst & St Clair Ave West
5. Union City - Metropia - Unionville next to the Go Train Station
6. Porta - M(M Developments - Downtown Belleville
7. Northshore - National Developments - 490 Plains Rd E in Burlington
8. Lot 16  (Freehold) - Sphere Developments - 16 Melbourne Ave in St Catherines
9. Mila II (Freehold) - Madison Group - 1555 Midland Ave* Scarborough (*Midland Ave & Lawrence Ave E)
10. Midhurst Valley (Freehold) - Sundance Homes - Springhurst, North of Barrie

That's it for today's episode. I'm Nico James-Bock, a broker with Royal LePage Signature Realty in Downtown Toronto and founder of The CondoWiz™Group.  As always you can reach out to me through my various channels:

www.RealEstateWithNico.com
https://www.instagram.com/thecondowiz_gta/
https://www.instagram.com/nico_realestate/
https://www.linkedin.com/in/nicojamesbock/
https://www.facebook.com/RealEstateWithNico
nbock@royallepage.ca
Office: (416) 203-0355

Helping you increase wealth through #realestate
https://nico.royallepage.ca/
https://www.facebook.com/RealEstateWithNico
https://www.linkedin.com/in/nicojamesbock/
https://www.instagram.com/nico_realestate/
https://twitter.com/Nico_RealEstate

As we moved from 2022 into 2023, the Greater Toronto Area (GTA) housing market unfolded as expected. The number of January sales and the overall average selling price were similar to December 2022. On a year-over-year basis, both sales and prices were down markedly, continuing to highlight the impact of higher borrowing costs on affordability over the last year.

Welcome to another episode of The Real Estate Podcast with me, Nico James-Bock, a Broker with Royal LePage Signature Realty in Downtown Toronto.

The YouTube version is available by clicking HERE

“Home sales and selling prices appear to have found some support in recent months. This coupled with the Bank of Canada announcement that interest rate hikes are likely on hold for the foreseeable future will prompt some buyers to move off the sidelines in the coming months. Record population growth and tight labour market conditions will continue to support housing demand moving forward,” said Toronto Regional Real Estate Board (TRREB) President Paul Baron.
GTA REALTORS® reported 3,100 sales through TRREB’s MLS® System in January 2023 – in line with the December 2022 result of 3,110, but down 44.6 per cent from January 2022. The average selling price for January 2023 at $1,038,668 was slightly lower than the December 2022 result and down by 16.4 percent compared to the January 2022 average price reported before the onset of Bank of Canada interest rate hikes. The MLS® Home Price Index (HPI) Composite Benchmark was in line with the December result, but down by 14.2 percent compared to January 2022.

The 5-year trend line shows prices are stabilizing again during the month of January. Bidding wars are making a comeback but only in certain circumstances and micro-markets.

Here are your Take-aways:
1. When comparing January 2023 to January 2022, with the impact of higher borrowing costs over the last year, prices and volumes are down considerably. Not news. Just a fact. The only people affected by this fact are those that bought and/or sold in Jan 2022 & again in Jan 2023.

2. The longer you hold onto real estate, the greater the appreciation. Real estate is a long-term investment. 

3. The BoC rate announcement is on March 8, 2023. The options are another small interest rate hike or no hike at all.

4. Residential real estate values are in a holding pattern in most sub-markets with slight appreciation owing to time, aggressive pricing, proper presentation

5. Demand for housing continues to remain strong as active listings continue to be well below seasonal levels.  There are currently fewer than 10,000 homes of all types available across the GTA, leaving the region with only three months of inventory.  If the Toronto Regional Real Estate Board did not register another listing we would be sold out of product in just three months.  Three months is still considered a seller's market and even with the headlines reporting a slower market, homes continue to sell quickly and in some cases with multiple bids.

That's it for today's episode. As always you can reach out to me through my various social channels:

Instagram https://www.instagram.com/nico_realestate/
Twitter https://twitter.com/Nico_RealEstate
Facebook Business Page https://www.facebook.com/RealEstateWithNico
Website:  nico.royallepage.ca / RealEstatewithNico.com
Email: Info@RealEstateWithNico.com

#HelpingYouAchieveWealth through #RealEstate

Ciao ciao

Helping you increase wealth through #realestate
https://nico.royallepage.ca/
https://www.facebook.com/RealEstateWithNico
https://www.linkedin.com/in/nicojamesbock/
https://www.instagram.com/nico_realestate/
https://twitter.com/Nico_RealEstate

Welcome to another episode of The Real Estate Podcast with me, Broker Nico James-Bock with Royal LePage Signature in Downtown Toronto. This is the first episode of 2023, a new year and new season. This first episode is also unique in that there is a Zoom recording of the podcast posted to my YouTube Channel, with charts and stats for you to view:

Podcast Season 1 Episode 1 YouTube

The Toronto Regional Real Estate Board released its final numbers for the year this week and there is a lot of interesting information. Following a very strong start to the year, home sales trended lower starting in the spring and continued throughout the balance of 2022 as aggressive Bank of Canada interest rate hikes hampered housing affordability, putting downward pressure on prices to mitigate the impact of the higher mortgage rates.

There were 75,140 sales reported through TRREB's MLS System in 2022 down 38.2% compared to the 2021 record of 121,639.  The average selling price for 2022 was $1,189,850 up 8.6% compared to $1,095,333 in 2021. This price growth was due to a strong start to the year.  

As we compare December 2022 with December of last year the adjustments in our market have become more evident.  Sales volume is down just over 48% with active listings up 169%.  With sales down and the supply of available homes up, downward pressure on pricing has begun to set in.  Prices are down 9.2% this past December compared to December 2021.

With the jump in the supply of all available home types the Months of Inventory number still remains in the seller’s market territory.  The supply of available homes for sale is still considered low which is assisting in the easing of prices; hence we are not seeing substantial price declines.  

Condominium pricing remains flat even with the volume of sales down over 50%.  Condominiums still remain an affordable way to enter the residential real estate market, with borrowing rates on the rise and the average price of freehold properties slowly moderating, condos remain in demand amongst first-time buyers and investors. 

New Home Construction wrapped up the year with fewer products entering the market and with a lower volume of sales.  Investors continued to sit on the sidelines and are waiting for borrowing costs to show some consistency before jumping into the market.  Construction costs still remain expensive and with the cost of borrowing going up, developers are unable to make any substantial adjustments to their pricing models.  However, developers have come up with some interesting promotions to attract purchasers, from cash back on closing to rental guarantees, developers are finding ways to sell units and keep buyers interested.  

That’s all for today’s podcast. Thanks for your attention. It is very much appreciated. If you want some clarity on the residential and/or commercial/industrial micro markets, or  If you have any interest in the pre-construction buying process,  don’t forget to follow and/or DM me on LinkedIn, Instagram, Twitter, and my Facebook Business Page. I post real-time stats on these channels that you don't want to miss. 

Instagram & Twitter: nico_realestate 

Facebook & LinkedIn: RealEstateWithNico

Email: NBock@RoyalLePage.ca

Website:  https://nico.royallepage.ca/

Helping you increase wealth through #realestate
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