And… we have lift-off. After months of speculation from economists, analysts, and armchair experts alike, the Bank of Canada has decreased the overnight lending rate by 25 basis points. While this may seem like a small gesture from a financial standpoint, it is one that could have a rather profound impact on the Toronto real estate market, as many are viewing it as a positive sign of things to come.
While it may not translate into a significant change to monthly mortgage payments, the cut marks the first time in more than four years that we have seen any decrease to the all-important lending rate, and, as such, it is widely expected to buoy sentiment among those who have remained on the sidelines.
"Affordability is expected to improve further as borrowing costs trend lower," said Jason Mercer, Chief Market Analyst at TRREB. "However, as demand picks up, we will likely see renewed upward pressure on home prices as competition between buyers increases."
Recent data supports this outlook. According to a Royal LePage survey, more than half of Canadians who put their home-buying plans on hold in the last two years stated they would return to the market when the Bank of Canada reduced its key lending rate. With this rate cut, we anticipate a busier than usual summer market.
The latest TRREB report shows that while new listings outpaced demand, there is still a delicate balance in the market. May 2024 saw a total of 7,013 home sales, a 21.7% decrease year-over-year, while new listings increased by 21.1% year-over-year to 18,612. Despite the slight dip in pricing resulting from supply outweighing demand, the market conditions in the resilient Toronto market remain dynamic.
Last month’s stats demonstrate that buyers have been proceeding with caution. The recent reduction in borrowing costs, however, is likely to attract more of them to market, including, perhaps, first-time buyers, potentially alleviating the tight rental market conditions. Ultimately, the increase in new listings provides more options for buyers, giving them greater negotiating power.
As we move forward, it is crucial for both buyers and sellers to stay informed and strategic. Buyers should be prepared for a more competitive landscape but can leverage current conditions to their advantage.
For more insights and personalized advice, please reach out. Our team of strategic advisors is here to help you navigate these changing market conditions with confidence.
Central Toronto Market Spotlight
In Central Toronto, year-over-year numbers reveal a nuanced picture: semi-detached home prices have increased by 1.47%, while detached prices have decreased by 9.55%, and condo prices have seen a slight dip of 1.31%. This variability highlights the differing dynamics within property types. As we delve deeper into the summer market, though, Central Toronto is poised to emerge as a particularly vibrant area. Recent trends, as well as anecdotal evidence from our own team – including increased showings and the return of multiple offers – indicate that buyer interest here has arrived even ahead of the interest rate cut, a testament to the strong pent-up demand that has been accumulating over the past year. In this micro-market, we expect to see notable price rebounds and increased sales activity.
Welcoming Stephanie Newlands and Kasey Mundinger
Heaps Estrin Goes West
We could not be more thrilled to officially welcome the newest members of the Heaps Estrin Team, Stephanie Newlands and Kasey Mundinger. Stephanie brings more than a decade of experience in Toronto real estate to the team, having spent 13 years with Berkshire Hathaway HomeServices. In that time, she has launched and rebranded a brokerage, and forged incredible relationships with her clients – primarily in the city’s west end – by providing them with consummate care and overseeing countless successful outcomes in her role as a broker.
By joining the Heaps Estrin Team, Stephanie is looking forward to further growing her business and to sharing, with her clients and her community, the increased support and robust service offerings that come with being part of this strong organization. Stephanie’s Dedicated Sales Assistant, Kasey Mundinger, has joined her in this transition and our team could not be happier about having this dynamic duo on board. We can't wait to see what we accomplish together.
1414 Bayview
Cocktails & Caviar
We were delighted, recently, to celebrate the upcoming opening of 1414 Bayview at Cocktails & Caviar, an agent and broker event, hosted at The Lobby by Heaps Estrin.
About 1414 Bayview: Dive into an unparalleled opportunity to secure pre-occupancy pricing at 1414 Bayview, starting at just $1.325M. These 44 meticulously designed residences are on the cusp of completion, ready to redefine Leaside living across eight luxurious storeys. With a variety of thoughtful floorplans tailored to meet the demands of modern luxury against the serene backdrop of a classic, distinguished neighbourhood, 1414 Bayview is a testament to a new vision for Leaside by design.
Don't let this chance slip away to claim your piece of this incredible boutique building. Act now to reserve your suite and be part of the transformation. Contact us today for a private appointment and step into your future home this spring.
HEAPSESTRIN.COM | 416.424.4910 | @HEAPSESTRIN
If you have questions regarding your data, please visit our Privacy Policy.
Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.
Not intended to solicit buyers or sellers under agency agreement or properties currently listed for sale.
© 2024 Royal LePage Real Estate Services Heaps Estrin Team. Brokerage Independently Owned and Operated. All Rights Reserved.
Leave A Comment