Happy New Year everyone! This is an interesting time in Toronto real estate as many perceive that there has been a shift in the market. The last quarter of 2023 saw many properties hit the market for sale and then just sit there. For the first time in a long time, price sensitivity had become an issue. Agents are being forced to actually price their properties correctly and not have the market do their work for them. And this business of pricing low and then holding back offers with the intention of the property selling for way more … well, we will have to see if that returns as a frequent practice.
So where does this leave us as we start this new year? Experts predict that the high interest rate increases last year have dramatically affected property affordability, and as such the market will have to readjust. Some optimists feel that this slowdown is to be short-lived and demand for Toronto real estate will come soaring back. Several years ago, we had a few months of quiet, but then almost overnight someone turned the tap back on and properties started selling again. It is possible that there is a pent-up demand that has been just waiting to see where things land. Serious buyers cannot wait forever so it is entirely possible that we will have a busy spring market. This week I have already seen multiple offers on a triplex in the Annex, so that shift may have already started. Of course, if the Bank of Canada actually lowers interest rates any time soon, many feel that will also drive many buyers back into the market.
Royal LePage is forecasting a 6% increase in prices this year so obviously they feel that the market is going to keep up. “Looking ahead, we see 2024 as an important tipping point for the national economy as the majority of Canadians acknowledge that the ultra-low interest rate era is dead and gone,” said?Phil Soper, President and CEO,?Royal LePage. “We believe that the ‘great adjustment’ to tolerable, mid-single-digit borrowing costs will have a firm grip on our collective consciousness after only modest rate cuts by the Bank of?Canada.”?
I look forward to getting back into the field this year and seeing where the Toronto duplex and triplex market is heading. If you or someone you know is looking to get into an income-generating property, please don’t hesitate to reach out. I have been buying, selling, and leasing income properties in the GTA for over twenty years, so I’m sure I can add some valuable insight to your next real estate sale or purchase. Just reach out to me any time at email@example.com.
Municipal Property Taxes to Increase Significantly in Toronto in 2024
There was always talk of a significant increase to cover the budget shortfall.
Rental Rates in Toronto Far Higher Than the National Average
As it becomes more expensive to carry a mortgage each month in Toronto many people are looking to rent
2023 Toronto Income Property Highlights
The Toronto income property market remained strong in 2023 despite external pressures on monthly affordability.