Thank you to everyone who came out to our 8th annual Holiday Cheer!
We were able to collect over 200 non-perishable food items which we will be donating to the Food Bank. Thank you for your continued support in the real estate industry.
Here are some photos from the event that you are welcome to download.
Cheers to 2025!
Canadians are looking ahead to 2025 with a positive outlook on the housing market, prompted by a series of interest rate cuts in the latter part of 2024. RE/MAX Canada and its network of brokers and agents are expecting a more active market next year, with the national average residential price likely to increase by five per cent, and sales anticipated to rise in 33 out of 37 regions surveyed, with sales increases of up to 25 per cent.
This renewed confidence in the market is notably being felt by first-time homebuyers (seven per cent) according to a Leger surveyed commissioned by RE/MAX Canada as part of the 2025 Housing Market Outlook Report. RE/MAX brokers and agents in 81 per cent of regions surveyed noted that first-time homebuyers were the key demographic anticipated to drive market activity in 2025.
RE/MAX brokers and agents nationwide, were asked to share a year-over-year analysis of their local market between January 1 and October 31 and share their estimated outlook for 2025. Ahead of 2025, it’s anticipated that 44 per cent regions will shift to a sellers' market (Victoria, BC, Greater Vancouver Area, BC, Edmonton, AB, Regina, SK, Sudbury, ON, North Bay, ON, Simcoe County, ON, York Region, ON, Windsor, ON, Thunder Bay, ON, Kenora, On, Fredericton, NB, Saint John, NB, Halifax, NS, Truro & Colchester, NS, and St. John’s Metro, N.L), while 33 per cent regions will shift to balance out (Vancouver Island, BC, Kelowna/Central Okanagan, BC, Winnipeg, MB, Kitchener-Waterloo, ON, Mississauga, ON, Brampton, ON, Durham, ON, Toronto, ON, Ottawa, ON, Sault Ste. Marie, ON, Kingston, ON, and Prince Edward Island), 17 per cent will shift to a buyers' market (Hamilton, ON, Burlington, ON, Peterborough, ON, Kawartha Lakes, ON, Muskoka, ON, and Haliburton, ON), while six per cent will experience mixed market conditions (Calgary, AB and Niagara, ON).
Based on their insights, the majority of the regions surveyed noted that first time homebuyers are one audience group driving the market across the nation, and many are looking for townhomes and small residential properties such as bungalows, while move-up and move-over homebuyers are looking for larger properties with additional space. On the flip side, retirees are seeking to down-size in most regions, with the exception of Calgary who are seeking villas and larger condominiums. Similar, to last year, many homebuyers are still looking for detached homes, as well semi-detached homes with income potential to off-set rising cost of living. These trends are likely to continue heading into 2025, according to RE/MAX brokers across the country.
Move-up buyers and investors are expected to drive the bulk of sales activity in 2025, with single-detached houses being most in-demand in the region.
First-time homebuyers are typically buying condominiums and apartment units in the $450,000 – $750,000 price range. With the costs of homes in the city, first-time buyers are opting to enter the housing market through the condo market as they continue to save the larger down payments needed for other property types.
Move-up buyers are buying townhomes, semi-detached and detached homes in the $750,000 – $2,000,000 price range. Meanwhile, retirees are downsizing into condo apartments within the $1,000,000 – $2,000,000 price range, and the healthy supply of condos in the Toronto housing market right now provides a variety of options.
Planned new construction projects are being shelved, with many projects only proceeding if they have already been started.
Home sellers are feeling more confident heading into 2025 as homebuyers begin to re-enter the market. Reduced interest rates and prices, and loosening of mortgage regulations including the 30-year amortization announcement, will all make it easier for first-time homebuyers to purchase a home in Toronto as housing supply continues to increase.
Source: Remax.ca
The RE/MAX Quest for Excellence scholarship program is a cash scholarship that recognizes students for their ongoing community contributions and pursuit of leadership. Through this scholarship program, RE/MAX Canada is pleased to offer 40 scholarships of $1,000 each to students across Canada (except for Quebec).
The 2025 Quest for Excellence program will invite eligible students to write and submit an essay based on one of three key themes: charitable community contribution; the vision for a brighter future; and ensuring Canadians have a safe, secure and affordable place to call “home.”
“At RE/MAX Canada, we understand the importance of supporting the communities where we live and work,” says Christopher Alexander, President, RE/MAX Canada. “Through initiatives like the Quest for Excellence, we aim to not just help students achieve their educational goals, but to also inspire a culture of giving back. These programs serve as a beacon, illuminating future leaders within our communities.”
“The 2025 Quest for Excellence scholarship program is about more than just providing financial assistance; it’s about recognizing students who are dedicated to their communities and driven by a passion for leadership,” says Anthony Volpini, Executive Director, Marketing at RE/MAX Canada. “We look forward to receiving more powerful stories and ideas shared by students who are striving for a better future.”
To apply for the Quest for Excellence scholarship, eligible students are invited to write and submit an online essay that is a minimum of 500 words in length, answering one of the following questions:
What does a “bright future” look like for you?
How have you demonstrated leadership or charity within your community to make it a better place?
How can we ensure fair and affordable housing for all Canadians?
The 2025 Quest for Excellence scholarship program is open until March 9 2025 11:59PM ET.
To be eligible, entrants must be a Grade 12 student attending high school in Canada in the September 2024 – June 2025 academic year. Entrants must not have previously participated in a commencement ceremony.
Should you have any questions please email: questforexcellence@remax.ca. Do not email your essay, please enter at the link provided above.
One entry per person.
RE/MAX Canada will review the essay submissions and award 40 scholarships, of $1,000 each, to qualifying Grade 12 students.
Read the full rules and regulations here.
*All essay entries become the property of RE/MAX Canada. Photos and names of winners may be published in print or in digital formats and shared with media. Each RE/MAX office is independently owned and operated.
The Quest for Excellence scholarship program is an annual program that started in 2000 in Western Canada. Prior to expanding across Canada, the program awarded $16,000 in scholarships to 16 students in British Columbia, Alberta, Saskatchewan, Manitoba, Yukon Territory and Northwest Territory, in the amount of $1,000 per scholarship. To date, RE/MAX has disbursed $384,000 through the Quest for Excellence scholarship program. For more information, please visit https://blog.remax.ca/quest-for-excellence/
Ravi Singh discusses the current environment of the market including the recent inflation numbers and the recent drop in the Bank of Canada's lending rate. What does this mean for you as a homeowner? potential seller or buyer? or real estate investor? Please tune in and let us know if you have any questions!
Ravi Singh was name one of the most Interesting People in Real Estate by Inman News in 2016. Award winning Realtor with ReMax Hallmark and team leader at The Connexus Group.
Connexus Group and RE/MAX are always looking to give more to our clients. Whether you’re just finished selling, buying or moving into your place, you deserve an amazing getaway. 20 winners will win a $1500 Expedia gift card and be on their way to some serious relaxation. Best at Giving Back!
Here’s a ‘highlights’ summary of the significant real estate milestones across the entire Toronto Real Estate Board territory and the City of Toronto specifically for AUGUST 2024 as we slide into the fall real estate market.
• Across the entire TRREB Board, AUGUST sales (4,975) were -5% below last year
• Active Listings (22,653) however were +46% above those in August 2023-highest since 2008
• The ratio of sales-to-listings dropped slightly again during the month to 22% in August – a definitive indication of a buyer’s market
• The August average sale price came in at $1,074,425– a -1% drop from the 2023 average one year ago and the 2nd lowest this year since January
• The GTA real estate market ‘velocity’ slowed more to 28 days-on-market
• Detached home sales in August 2024 with a purchase price over $2,000,000 were up by +1% (276 houses) while condo apartment sales over $2M were up by 9% (12 suites) compared to August 2023
• The CONDO townhouse / highrise share of the overall market was steady at 36% during the month but all condo-type sales (1,793) were the lowest since 2002
• In the City of Toronto only, detached house sales (484) increased by +7% from 2023 while the average detached sale price ($1,692,239) was up +3% compared to a year ago
• In August Toronto semi-detached sales (133) were down by -4% year-over-year while the average semi sale price ($1,204,678) was lower by -3% compared to last year
• Downtown condo active listing numbers were up BIG time again… an increase of +44% in C01 and by +27% in C08 from last year
• August year-over-year downtown condo sales declined in C01 (-22%) and fractionally up in C08 (+4%) compared to 2023
• The downtown condo days-on-market average increased to between 36 & 34 days in both C01 and C08… several days slower than in July
• The August ratio of sales-to-listings for high-rise condos downtown stayed constant in deep buyer market territory in both C01 (14%) and in C08 (16%), caused principally by the large increase in condo suite inventories
• In the 905 districts, August saw average detached and condo apartment home prices decline by around -2% to -1% compared to 2023. Sales numbers were slightly lower (-3% houses / -4% condos) from one year ago
• With 5-year fixed-rate mortgages now available but uncommon at 4.39%, we are still, in my opinion, too high to influence the market very much. If we get the BoC rate down into the 3’s by the end of the year, we might look for a better market next spring
With the long-anticipated decline in interest rates finally starting to materialize, early indicators from RE/MAX brokers and agents across Canada suggest steady housing market activity this fall, with average sale prices across all housing types expected to increase between one and six per cent in most regions by year’s end. Ahead of the next Bank of Canada (BoC) interest rate announcement on September 4, two in 10 Canadians (16 per cent) said they will feel more comfortable engaging in the real estate market once they see there is more than a 100-basis-point cut to the BoC’s lending rate between now and the end of the year, according to a Leger survey commissioned by RE/MAX.
Ahead of further anticipated interest rate cuts by the Bank of Canada, it seems that even the mere prospect of lower rates has boosted confidence among first-time homebuyers, with one-quarter of Canadians (25 per cent) actively saving for a home purchase and confident they will be able to buy soon (with the majority being younger Millennials and Gen Zs aged 18-24, at 35 per cent).
On the flipside, dropping interest rates now may prove too little, too late for some current homeowners, with 14 per cent saying they need to renew their mortgage soon, and with the current higher interest rate, they may need to sell their home.
When it comes to financial savings, the Leger survey revealed that while a home purchase is listed among the top three priorities for 25 per cent of Canadians, it has taken a back seat to day-to-day expenses such as utilities and food (58 per cent), and travel (45 per cent).
In the search for affordability, one-quarter of Canadians say that they are considering moving to another country (28 per cent) and 25 per cent say they are reconsidering whether to have children or start a family due to housing affordability challenges.
Survey Says...
About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC and RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.
Detached home values climb in over 80% of Fraser Valley communities; 70% of Greater Vancouver; and 40% of the GTA’s 905 areas
With first-time buyers locked out of the country’s most expensive housing markets, move-up/down buyers and investors have been fuelling detached home-buying activity in the first six months of 2024 in the Greater Toronto Area (GTA), Greater Vancouver Area (GVA) and Fraser Valley. RE/MAX surveyed 83 communities across the GTA, the GVA and the Fraser Valley, and found that 30 per cent reported an upswing in the number of detached housing sales in the first half of the year (25/83), while close to 40 per cent of markets (33/83) reported an increase in values. Toronto detached homes led the other regions in rebounding sales momentum, with just over 34 per cent of neighbourhoods in the 416 experiencing stability or growth in buying activity — ahead of the 905, Greater Vancouver and Fraser Valley. Meanwhile, detached price appreciation was led by Greater Vancouver and the Fraser Valley, driven by limited inventory levels. Fraser Valley took the lead, with 83.3 per cent (5/6) of local areas noting an upswing in average price, followed by Greater Vancouver, which saw median values increase in 70.6 per cent of neighbourhoods.
“While affordability remains the top obstacle for first-time homebuyers, more experienced buyers and investors are taking advantage of softer housing values, making their moves ahead of the Bank of Canada’s end to quantitative tightening,” says RE/MAX Canada President Christopher Alexander. “Pent-up demand continues to build, with an estimated 20,000 to 25,000 buyers currently lying in wait in the GTA, and another 5,000 buyers in the Greater Vancouver area ready to pull the trigger. The first interest rate cut in June did little to incentivize buyers, but early indications show the second may have struck a nerve.”
To illustrate, the 10-year average for sales in the Greater Toronto area is just over 92,000 annually. Given the drop to 66,000 sales in 2023, and just over 75,000 homes sold in 2022, the region’s real estate market has seen a shortfall of 43,000 sales during the past two years alone. The same argument can be made for the Greater Vancouver Area, where annual sales have typically averaged over 33,000 during the past decade. Over 26,000 homes sold in 2023, while close to 29,000 homes sold in 2022 – a shortfall of about 11,000 transactions.
“Buying intentions slowed, while new household formation, lifecycle events, immigration and population growth have continued,” says Alexander. “The right conditions will undoubtably unleash demand. Meantime, certain neighbourhoods have proven stronger than others.”
In the Greater Toronto real estate market, pockets that posted notable percentage gains in home-buying activity include Dufferin Grove, Little Portugal, Trinity-Bellwoods, Palmerston-Little Italy, Niagara, University, Kensington-Chinatown, Bay St. Corridor, Waterfront Communities (C01); Oakwood Village, Humewood-Cedarvale, Yonge-Eglinton, Forest Hill South (C03); Rosedale-Moore Park (C09); Leaside, Thorncliffe Park, Flemingdon Park (C11); Rockcliffe-Smythe, Keelesdale-Eglinton West, Caledonia-Fairbank, Corso Italia-Davenport, Weston-Pelham Park (W03).
“Vibrant downtown/midtown communities remain a perennial favourite among purchasers in Toronto, who are vying for detached properties in coveted blue-chip neighbourhoods such as Rosedale-Moore Park, Forest Hill South, the Kingsway, Leaside, and The Beaches, as well as gentrified areas including Trinity-Bellwoods, Palmerston-Little Italy, and Corso Italia-Davenport,” says Alexander.
*Source: https://blog.remax.ca/detached-houses-toronto-vancouver/
Here’s a ‘highlights’ summary of the significant real estate milestones across the entire Toronto Real Estate Board territory and the City of Toronto specifically for JUNE 2024 as we cruise through our summer real estate market.
• Across the entire TRREB Board, JUNE sales (6,213) were a big -16% below last year
• Active Listings (23,613) however were +67% above those in June 2023-highest since 2010
• The ratio of sales-to-listings dropped again during the month to 26% in June – a definitive indication of a buyer’s market
• The June average sale price came in at $1,162,167– again a -2% drop from the 2023 average one year ago
• The GTA real estate market ‘velocity’ slowed slightly to 20 days-on-market
• Detached home sales in June 2024 with a purchase price over $2,000,000 were down by -18% (461 houses) while condo apartment sales over $2M were flat (20 suites) compared to June 2023
• The CONDO townhouse / highrise share of the overall market declined slightly to 32% during the month and all condo-type sales (2,007) declined by -26% from 2023
• In the City of Toronto only, detached house sales (744) slowed by -8% from 2023 while the average detached sale price ($1,758,649) declined by -1% compared to a year ago
• In June Toronto semi-detached sales (236) were down by -21% year-over-year while the average semi sale price ($1,282,973) declined by -9%
• Downtown condo active listing numbers were up BIG time again… an increase of +77% in C01 and by +89% in C08 from last year
• June year-over-year downtown condo sales declined both in C01 (-28%) and in C08 (-33%) compared to 2023
• The downtown condo days-on-market average stayed relatively steady at between 26 & 25 days in both C01 and C08
• The June ratio of sales-to-listings for high-rise condos downtown slid again this month into deeper buyer market territory in both C01 (14%) and in C08 (12%), caused principally by the large increase in condo suite inventories
• In the 905 districts, June saw average detached and condo apartment home prices decline by around -3% to -4% compared to 2023. Sales numbers were all negative (-12% houses / -26% condos) from one year ago
• I don’t expect the market to make any improvements until later in the fall, and only if there are significant interest rate declines and an uplift to our economy. Sellers are in trouble but buyers, if they can afford it, have a definite advantage right now
Here’s a ‘highlights’ summary of the significant real estate milestones across the entire Toronto Real Estate Board territory and the City of Toronto specifically for MAY 2024 as we close out our spring real estate market
Across the entire TRREB Board, MAY sales (7,013) were a huge -22% below last year
Active Listings (21,720) however were +83% above those in May 2023-highest since 2013
The ratio of sales-to-listings dropped again during the month to 32% in May – edging further towards a neutral market
The May average sale price came in at $1,165,691– a -2% drop from the 2023 average one year ago
The GTA real estate market ‘velocity’ stayed constant at 19 days-on-market
Detached home sales in May 2024 with a purchase price over $2,000,000 were down by -22% (526 houses) while condo apartment sales over $2M were lower by -37% (24 suites) compared to May 2023
The CONDO townhouse / highrise share of the overall market was steady at 35% during the month and all condo-type sales (2,467) declined by -25% from 2023
In the City of Toronto only, detached house sales (851) slowed by -12% from 2023 while the average detached sale price ($1,826,370) declined by -5% compared to a year ago
In May Toronto semi-detached sales (274) were down by -4% year-over-year while the average semi sale price ($1,416,496) increased marginally by +1%
Downtown condo active listing numbers were up BIG time again… an increase of +101% in C01 and by +96% in C08 from last year
May year-over-year downtown condo sales declined both in C01 (-28%) and in C08 (-31%) compared to 2023
The downtown condo days-on-market average stayed relatively steady at between 25 & 26 days in both C01 and C08
The May ratio of sales-to-listings for high-rise condos downtown slid again this month into deep buyer market territory in both C01 (17%) and in C08 (17%), caused principally by the large increase in condo suite inventories
In the 905 districts, May saw average detached and condo apartment home prices decline by around -3% compared to 2023. Sales numbers were all negative (-22% houses / -26% condos) from one year ago
Although we did have a 0.25% Bank of Canada rate drop this month, I believe it will take a further 0.5% to 0.75% decline before we see stability in the market. Sellers are in a bit of a pickle but buyers, if they can afford it, have a distinct advantage right now
Here’s a ‘highlights’ summary of the significant real estate milestones across the entire Toronto Real Estate Board territory and in the City of Toronto specifically for MARCH 2024 as we enter the busiest months of our real estate spring market.
Across the entire TRREB Board, MARCH sales (6,560) were -5% below last year
Active Listings (12,459) however were +23% above those in March 2023
• The ratio of sales-to-listings remained relatively level during the month at 53% in March – staying in a modest sellers market
• The March average sale price came in at $1,121,615– close to the same as the 2023 average and up slightly to +1.2% compared to one year ago
• The GTA real estate market ‘velocity’ increased again to 20 days-on-market
• Detached home sales in March 2024 with a purchase price over $2,000,000 were up by just +1% (418 houses) while condo apartment sales over $2M decreased significantly by -42% (11 suites) compared to March 2023
• The CONDO townhouse / highrise share of the overall market dropped again slightly to 36% during the month and all condo-type sales (2,377) declined by -10% from 2023
• In the City of Toronto only, detached house sales (647) slowed by -3% from 2023 while the average detached sale price ($1,708,437) was identical to a year ago
• However March Toronto semi-detached sales (222) were up by +10% year-over-year while the average semi sale price ($1,300,403) increased by +3%
• Downtown condo active listing numbers were up big time… an increase of 64% in C01 and by 55% in C08 from last year
• March year-over-year downtown condo sales declined both in C01 (-21%) and in C08 (-30%) compared to 2023
• The downtown condo days-on-market average stayed relatively steady at between 31 & 25 days in both C01 and C08
• The March ratio of sales-to-listings for high-rise condos downtown were steady and still in buyer market territory in both C01 (24%) and in C08 (20%), caused principally by the large increase in condo suite inventories
• In the 905 districts, March saw average detached and condo apartment home prices flat compared to 2023. Sales numbers were all negative (-3% houses / -8% condos) from one year ago
• With 5-year fixed mortgages now available in the 4.99% range, the market is showing some resistance to rates in the high 4% range and it might take a Bank of Canada rate cut or two to shake that off
Here’s a ‘highlights’ summary of the significant real estate milestones across the entire Toronto Real Estate Board territory and in the City of Toronto specifically for APRIL 2024 as we enter the busiest months of our real estate spring market.
• Across the entire TRREB Board, APRIL sales (7,114) were again -5% below last year
• Active Listings (18,088) however were +74% above those in April 2023
• The ratio of sales-to-listings dropped during the month to 39% in April – edging towards a neutral market
• The April average sale price came in at $1,156,167– almost identical to the 2023 average one year ago
• The GTA real estate market ‘velocity’ increased marginally to 19 days-on-market
• Detached home sales in April 2024 with a purchase price over $2,000,000 were up by +4% (512 houses) while condo apartment sales over $2M were identical (23 suites) compared to April 2023
• The CONDO townhouse / highrise share of the overall market stayed steady at 36% during the month and all condo-type sales (2,587) declined by -6% from 2023
• In the City of Toronto only, detached house sales (750) slowed by -2% from 2023 while the average detached sale price ($1,822,244) was up +2% compared to a year ago
• However April Toronto semi-detached sales (240) were up by +3.4% year-over-year while the average semi sale price ($1,365,061) increased by +3%
• Downtown condo active listing numbers were up BIG time again… an increase of 100% in C01 and by 78% in C08 from last year
• April year-over-year downtown condo sales declined both in C01 (-10%) and in C08 (-17%) compared to 2023
• The downtown condo days-on-market average stayed relatively steady at between 31 & 25 days in both C01 and C08
• The April ratio of sales-to-listings for high-rise condos downtown was unchanged and still in buyer market territory in both C01 (22%) and in C08 (20%), caused principally by the large increase in condo suite inventories
• In the 905 districts, April saw average detached and condo apartment home prices flat compared to 2023. Sales numbers were all negative (-9% houses / -1% condos) from one year ago
• It looks like expectations that the BOC will lower rates soon is wrong and buyers are stepping to the sidelines waiting for a positive rate change signal. Alternately, condo buyers might want to take negotiating advantage of high inventories and purchase at a discounted price
Here’s a ‘highlights’ summary of the significant real estate milestones across the entire Toronto Real Estate Board territory and in the City of Toronto specifically for FEBRUARY 2024 as we slide towards the spring market.
• Across the entire TRREB Board, FEBRUARY sales (5,607) were +18% above last year
• Active Listings (11,102) however were +15% above those in February 2023
• The ratio of sales-to-listings rose once again during the month to 51% in February – venturing into a modest sellers market
• The February average sale price came in at $1,108,720– slightly above the 2023 average and +1% compared to one year ago
• The GTA real estate market ‘velocity’ sped up somewhat to 25 days-on-market
• Detached home sales in February 2024 with a purchase price over $2,000,000 were up by +13% (326 houses) while condo apartment sales over $2M decreased by -13% (13 suites) compared to February 2023
• The CONDO townhouse / highrise share of the overall market dropped slightly to 37% during the month and all condo-type sales (2,048) jumped by +13% from 2023
• In the City of Toronto only, detached house sales (568) increased by +18% from 2023 while the average detached sale price ($1,657,026) was lower by -3% from a year ago
• Similarly, February Toronto semi-detached sales (181) were up by +26% year-over-year while the average semi sale price ($1,319,884) increased by +3%
• Downtown condo active listing numbers were up big time… an increase of 38% in C01 and by 41% in C08 from last year
• February year-over-year downtown condo sales increased in C01 (+6%) and were up in C08 (+1%) compared to 2023
• The downtown condo days-on-market average stayed relatively steady at between 31 & 35 days in both C01 and C08
• The February ratio of sales-to-listings for high-rise condos downtown moved up although still in buyer market territory in both C01 (25%) and in C08 (23%), defined mainly by the large increase in condo suite inventories
• In the 905 districts, February saw average detached home prices up by 2% compared to 2023 while condo apartment prices in the 905 districts were lower by -3% compared to last year. Sales numbers were all positive (+22% houses / +14% condos) from one year ago
• With 5-year fixed mortgages now available in the 5.09% range, the market might be recognizing that rates in the 4-5% range might be the new normal and they’re unlikely to change much in the next 6-12 months
Here’s a ‘highlights’ summary of the significant real estate milestones across the entire Toronto Real Estate Board territory and in the City of Toronto specifically for JANUARY 2024 as we start off the new year.
• Across the entire TRREB Board, JANUARY sales (4,223) were +37% above last year and were almost average for the month
ü Active Listings (10,3093) however were +9% above those in January 2023
• The ratio of sales-to-listings was up slightly again at 42% in January – a modest start towards a busier market
• The January average sale price came in at $1,026,703– slightly below the 2023 average and -1% compared to one year ago
• The GTA real estate market ‘velocity’ overall slowed even more to 37 days-on-market
• Detached home sales in January 2024 with a purchase price over $2,000,000 were up by +18% (175 houses) while condo apartment sales over $2M increased by +9% (12 suites) compared to January 2023
• The CONDO townhouse / highrise share of the overall market was up slightly to 39% during the month and all condo-type sales (1,658) jumped by +75% from 2023
• In the City of Toronto only, detached house sales (342) increased by +7.5% from 2023 while the average detached sale price ($1,570,520) was up +5.7% from a year ago
• Similarly, January Toronto semi-detached sales (106) were up by +26% year-over-year while the average semi sale price ($1,199,531) increased by +4%
• Downtown condo active listing numbers were up big time… an increase of 24% in C01 and by 40% in C08 from last year
• January year-over-year downtown condo sales increased in C01 (+32%) and were up in C08 (+159%) compared to 2023
• The downtown condo days-on-market average slowed again to between 38 & 45 days in both C01 and C08
• The January ratio of sales-to-listings for high-rise condos downtown moved up although still in buyer market territory in both C01 (24%) and in C08 (26%), defined mainly by the huge increase in condo suite inventories
• In the 905 districts, January saw average detached home prices basically flat compared to 2023 while condo apartment prices in the 905 districts were lower by -3% compared to last year. Sales here showed contrasts (+33% houses / +31% condos) from one year ago
• With 5-year fixed mortgages now available in the 5.09% range, the market might be recognizing that rates in the 4-5% range might be the new normal
High housing values, interest rates and taxes contributing to post-pandemic exodus from Canada's most expensive provinces.
While land transfer taxes and new property assessments in key markets appear to have little effect on the surface, eroding affordability levels are slowly shifting migration patterns and changing the landscape in major Canadian centres.
While land transfer taxes and new property assessments in key markets appear to have little effect on the surface, eroding affordability levels are slowly shifting migration patterns and changing the landscape in major Canadian centres.
LAND TRANSFER TAX BASED ON AVERAGE PRICE IN MAJOR CANADIAN URBAN CENTRES (2024)
In an analysis of six major housing markets including Vancouver, Calgary, Winnipeg, Toronto, Montreal and Halifax, RE/MAX found governments at all levels are collecting billions from Canadian homebuyers through levies and development fees on new construction, as well as land transfer and property taxes on residential properties. Tax rate increases, in tandem with record-high housing values and mortgage rates, have sparked a post-pandemic exodus from the country’s most expensive markets, contributing to a significant uptick in interprovincial migration numbers in Alberta and Atlantic Canada in 2023. While some homebuyers were content to move outside of core markets within their province, close to 60,000 Canadians found their answer to the current housing crisis in Alberta and, to a lesser extent, Nova Scotia, New Brunswick and Prince Edward Island. According to Statistics Canada’s Quarterly Demographic Estimates, Provinces and Territories Interactive Map, interprovincial migration doubled over already-strong year-ago levels in the first three quarters of 2023 in Alberta, with the province welcoming 45,194 people, compared to 22,278 during the same period in 2022.
Regressive tax policies are a reason for the changing migration patterns. Land transfer taxes were introduced across Canada in the 1970s as a method of generating revenue for municipalities, regardless of income. The highest land transfer taxes are found in Toronto, where buyers pay a municipal land transfer tax as well as a provincial tax. On January 1, 2024, Toronto upped the ante, introducing a luxury tax on home sales over $3 million. While the existing municipal land transfer tax (MLTT) essentially remains the same under $3 million, homebuyers that cross the threshold will find a sliding scale of taxes that range from 3.5 per cent on sales over $3 million to 7.5 per cent on sales over $20 million. On an average-priced home in the city, buyers can expect to pay close to $40,000 in taxes.
“When you think about what a $40,000 tax bill payable upon closing could do if it was applied to a down payment, it’s clearly time to incentivize the first domino,” says Alexander. “The first order of business should be revisiting the first-time buyer rebate/exemption in Toronto and Vancouver, because at $400,000 and $500,000-$525,000 respectively, they’re woefully inadequate given the average or benchmark price of properties in those cities.”
Young Canadians in particular are being impacted by taxes and this is having an impact on their home-buying decisions. A recent RE/MAX survey revealed that 40 per cent of Gen Z and 35 per cent of Millennials agree that the land transfer tax has played a role in their pursuit of home ownership, compared to 26 per cent of Gen X and 21 per cent of Baby Boomers.* As a result, there is a growing wave of younger people who are choosing to leave major centres and provinces to attain home ownership. Not surprisingly, some of the fastest-growing municipalities are inside or close to urban areas, according to Statistics Canada 2021 Census.
For example, East Gwillimbury in the Greater Toronto Area experienced the greatest increase in population between 2016 and 2021 with a 44.4-per-cent uptick; Langford, outside of Victoria, BC, and Southern Gulf Islands just outside Vancouver, were up 31.8 and 28.9 per cent respectively; Niverville, on the outskirts of Winnipeg was up 29 per cent; Carignan just outside Montreal was up 24.1 per cent; while Wolfville, Nova Scotia was up 20.5 per cent. New and proposed property tax reassessments are also creating confusion in markets across the country, including Toronto, Montreal and Halifax, with some properties assessed above recent sale prices. The Province of Ontario has yet again postponed its reassessment. With the Municipal Property Assessment Corporation (MPAC) still operating at levels assessed in 2016, new assessments in the province for the years 2023 and 2024 will likely be significantly higher when distributed.
The burden is even higher on new home construction within Canada’s most expensive markets. In Toronto, for example, taxes, levies and development fees on new condominiums – the first step to home ownership for many Canadians – is estimated to account for approximately 25 to 30 per cent of the overall purchase price. On a unit priced at $717,000, the average price for a condominium in Toronto at year-end, that accounts for roughly $180,000 to $215,000 paid by the purchaser. New low-rise housing is no exception. Based on a study by Altus Group, the Building Industry and Land Development Association (BILD) found that government fees, taxes and charges added $222,000 to the cost of an average, new single-family home in the Greater Toronto Area (GTA) in 2019 – three times higher than in major U.S. markets such as San Francisco, Miami, Boston, New York City, Chicago, and Houston.
Rising tax levels and quality of life have become a growing concern in cities throughout North America as well. Driven by domestic out-migration, more than 600,000 people left New York State for Florida, Texas, and other low-tax states in 2020 and 2023, according to US Census Data. Internal Revenue Services (IRS) data show the state lost an estimated $45 billion in taxable income between 2020 and 2023. Florida, on the other hand, welcomed more than 700,000 people during the same period, as the state’s favourable tax structure proved irresistible to buyers. “Clearly, public policy is contributing to a myriad of issues – with affordability front and centre – and there’s no relief in sight,” says Alexander. “Shelter is a basic human need, yet accessibility is becoming increasingly problematic as government reliance on the housing sector as a means of funding creates a greater divide. Affordability and opportunity are key to healthy and sustainable real estate market activity and a vibrant economy. As such, the potential economic impact of ongoing out-migration on the future of individual provinces should raise alarm bells.”
After a flurry of home-buying activity at luxury price points in the final quarter of 2023 in Toronto Proper due to upcoming changes to the city’s 2024 land transfer taxes, the housing market has slowed in the Greater Toronto Area. Sales are currently trending on par or slightly ahead of year-ago levels, with economic concerns and high interest rates leaving many buyers sitting on the sidelines. While the Bank of Canada (BOC) held firm on rates in January for the fourth consecutive time since its July 2023 rate hike, inflation remains high, placing the BOC in a challenging position. That said, there are signs that quantitative tightening is drawing to a close and some economists predict rates will start coming down by mid-year. With the promise of lower rates on the horizon, the spring market is expected to be active, with trade-up buyers leading the charge, cashing in on equity gains realized over the past decade. Unlike years prior, this spring market will be characterized by a greater selection of homes available for sale and less competition in the marketplace.
*Leger online survey of 1,517 Canadians aged 18+ was completed between July 21 and 23, 2023, using Leger’s online panel. Leger’s online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/- 2.5 per cent, 19 times out of 20.
**This report includes data and insights about Canadian housing markets supplied by RE/MAX brokerages and sourced from the Canadian Real Estate Association and local real estate boards. RE/MAX brokers and agents are surveyed on market activity and local developments. Each RE/MAX office is independently owned and operated.
Have we raised interest rates too much? Here's the thing... increasing interest rates has been a tactic to manage inflation. But we are calculating inflation inclusive of mortgage payments and rent. Once we remove those housing costs from the inflation numbers... we are at our benchmark inflation target of 2%. The Bank of Canada is aware of this. In this video I highlight what this means for next steps in Canadian Housing Market.
To book a discovery call with me, please click the Calendly link below:
Here’s a ‘highlights’ summary of the significant real estate milestones across the entire Toronto Real Estate Board territory and in the City of Toronto specifically for DECEMBER 2023 as we finish off last year’s real estate market reports.
Across the entire TRREB Board, DECEMBER sales (3,444) were +10% above last year and were the 2nd lowest for the month since the year 1999
Active Listings (10,370) however were +19% above those in December 2022
The ratio of sales-to-listings was up slightly at 33% in December – in a ‘neutral’ or slight buyer market territory
The December average sale price came in at $1,084,692– basically flat over the last 10 months (the average for 2023 is $1,126,604) and up 3.2% compared to one year ago
The GTA real estate market ‘velocity’ overall slowed to 32 days-on-market
Detached home sales in December 2023 with a purchase price over $2,000,000 were up by +10% (179 houses) while condo apartment sales over $2M were down by -27% (11 suites) compared to December 2022
The CONDO townhouse / highrise share of the overall market was steady at 35% during the month and all condo-type sales (1,198) dropped by -2% from 2022
In the City of Toronto only, detached house sales (371) increased by +20% from 2022 while the average detached sale price ($1,626,980) was basically flat from a year ago
Similarly, December Toronto semi-detached sales (128) were up by +54% year-over-year while the average semi sale price ($1,173,171) increased by 2%
Downtown condo active listing numbers were up big time… an increase of 24% in C01 and by 63% in C08 from last year
December year-over-year downtown condo sales increased in C01 (+3%) and were lower in C08 (-11%) compared to 2022 with 3-month rolling average Y-O-Y sale prices showing declines of -7% in C01 and -4% in C08
The downtown condo days-on-market average slowed to between 35 & 37 days in both C01 and C08
The December ratio of sales-to-listings for high-rise condos downtown remained steady in buyer market territory in both C01 (19%) and in C08 (15%), defined mainly by the huge increase in condo suite inventories
In the 905 districts, December saw average detached home prices up +3% compared to 2022 while condo apartment prices in the 905 districts were lower by -1.2% compared to last year. Sales here showed contrasts (+11% houses / -5% condos) from one year ago
In most of our previous Toronto / GTA market downturns, the house market recovered prior to the condo one as it seems it might be happening now
While there is a lot of average data here, specific details of a local area or a particular property vary from home to home and from street to street! Please get in touch with us to discuss the details of your own home.
Secondly, prices and demand have drastically changed to interest rates. As monetary policy measures change, so does the market! If the rates are likely to traject downwards, the opportunity to execute on a purchase or a larger purchase changes!
Send us a message by filling out the form below and we can give you all the details of your particular situation!
#theconnexusadvantage
Undeterred by affordability challenges, consumer confidence in home ownership as an investment remains steady; average prices expected to rise 0.5% in 2024
Canadians’ outlook on home ownership remains positive, according to a new report from RE/MAX Canada, despite challenging market conditions in 2023, including a persistent housing shortage, and a tricky interest rate environment. According to the RE/MAX 2024 Housing Market Outlook Report, the majority of Canadians (73 per cent) are confident that home ownership is the best investment, a sentiment that remains unchanged year-over-year. Looking ahead, the RE/MAX network of brokers and agents expects the market to be slightly more active in 2024, with national average residential sale prices likely to increase by 0.5 per cent and 61 per cent of regions surveying anticipating unit sales to increase in 2024.
Leger Survey Results
While the market is anticipated to cool in the first half of 2024, Canadians’ perceptions of real estate as a good investment haven’t shifted since 2022. According to a Leger survey commissioned by RE/MAX as part of the report, Canadians perceive homeownership as the best investment they could make (73 per cent), a number that has stayed consistent since last year’s report. Yet, more than half (54 per cent) are concerned that interest rate increases will impact their ability to engage in the real estate market. This will impact millennial homebuyers most acutely, with 73 per cent agreeing with this statement.
About the 2024 Canadian Housing Market Outlook Report
RE/MAX’s 2024 Canadian Housing Market Outlook Report includes data and insights from RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments. The overall outlook is based on the average of all regions surveyed, weighted by the number of transactions in each region.
About Leger
Leger is the largest Canadian-owned full-service market research firm. An online survey of 1,516 Canadians was completed between September 29 and October 1, 2023, using Leger’s online panel. Leger’s online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size (1,516) would yield a margin of error of +/- 2.2 per cent, 19 times out of 20.
About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC and RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.
Forward looking statements
This report includes “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “believe,” “intend,” “expect,” “estimate,” “plan,” “outlook,” “project,” and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company’s results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company’s business, the Company’s ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company’s ability to attract and retain quality franchisees, (6) the Company’s franchisees’ ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company’s ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company’s ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company’s website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.
*Source: https://blog.remax.ca/canadian-housing-market-outlook/
Enter for a chance to WIN a trip to watch Kyle Lowry play in MIAMI. Need more reasons to enter? We've got additional prizes up for grabs:
2nd prize
$500 gift card to nbastore.ca
3rd prize
$250 gift card to nbastore.ca
*Source: https://blog.remax.ca/GetHypedInMiami/
According to a new report from RE/MAX Canada, move-up buyers – that is, Canadians who already own a home and find themselves in a position to upgrade in the market – have been driving gains in the spring 2023 housing market, as they tried to get ahead of further Bank of Canada of interest rate hikes. These are the findings from a national perspective, and the trends forming in nine of Canada’s biggest housing markets.
What began as a trickle of movement into housing markets late in the first quarter turned into a swell, as move-up buyers drove strong demand for residential properties across the country throughout the second quarter of the year. Buyers took advantage of the Bank of Canada’s temporary pause in overnight rate hikes in the second quarter of the year, sparking a flurry of activity in the mid- to upper-price ranges in Canada’s biggest housing markets. Tight inventory levels placed upward pressure on values, prompting double-digit price increases in five of the nine markets analyzed, between January and June of 2023. These include Regina, Greater Toronto, Hamilton, Winnipeg and Montreal. Meanwhile, single-digit price upswings were noted in the four remaining markets – Greater Vancouver, Calgary, Ottawa and Halifax – as sellers held on to properties that fell short of peak price levels reported one year ago. Fear of further rate hikes continues to impact the market psyche, with many move-up buyers hoping to get into the market before rates climb again. RE/MAX brokers noted increased urgency in the market as buyers sought to obtain mortgage pre-approvals with guaranteed rate holds in place for a 120-day period, prior to both the BoC’s June and July announcements.
Equity gains also factored into Canadians’ decision to move up to larger homes or better neighbourhoods, despite the pandemic-induced rise and fall of real estate value. This was especially true in central and eastern Canada. With trade-up activity traditionally occurring within four to seven years of the initial home purchase, RE/MAX examined pricing in June 2018 compared to June 2023 and found that almost every market reported a significant upswing in value over the five-year period, ranging from just over three per cent in Regina to more than 80 per cent in Halifax. “While the threat of further interest rate hikes has given some pause to the market, particularly at entry-level price points, robust equity gains over the past five-year period provided the means and confidence to fuel solid buyer intentions in move-up markets across the country,” explains Alexander.
Necessity was the primary factor driving demand through the first half of 2023. Whether it was a growing family, the need for more space to accommodate new work-from-home arrangements and schedules, or a better school district, quality-of-life considerations were central to purchasing decisions. This proved true regardless of the move being made – whether downsizing or simplifying in more walkable neighbourhoods closer to the core, trading up or making lateral moves, urban or suburban.
With July’s 0.25 basis point rate hike, the BoC’s key rate now sits at five per cent, and home buying activity is expected to slow through the summer months in most major Canadian housing markets. However, once it’s clear that the BoC is nearing the end of quantitative tightening and rates start to unwind, demand for housing will likely ramp up yet again. With uncertainty around financing out of the equation, the focus should remain squarely on supply again. In the move-up market and across the board, that will translate to renewed upward pressure on pricing. “One simply cannot understate the serious repercussions the housing shortage will continue to have on Canadian real estate and affordability,” explains Alexander. “In the short term, while the BoC’s movements may clamp down on housing demand, especially at lower price points, we expect they will have unintended consequences, serving as a temporary dam causing pent-up demand to build and new home construction to contract. When the BoC decides to finally relax quantitative measures and the dam bursts, housing supply will fall even shorter amid record population growth.”
*Source: https://blog.remax.ca/move-up-buyers/
BUYING? SELLING? INVESTING? CALL US! We'd love to hear from you. 416.494.7653 theconnexusgroup@gmail.com
