June 2023 Market Update
The demand for housing continues to be strong! GTA realtors reported the sale of 9,012 homes in May, up 24% from last May’s 7,226. Sadly, new listings were down by 18.7% over the same period and as we all know it’s all about supply and demand. This shortage of homes for sale resulted in multiple offers on well-priced properties and brought the average sale price in May up to $1,196,101. This scenario is repeated in rental properties where bidding wars on rental units are no longer the unusual.
Toronto’s population continues to grow and our government’s commitment to increase immigration to 1.5 million over the next 3 years will only exacerbate the situation. For the last 20 years builders have not been able to build enough units to satisfy Canadian population growth and the increase in house prices has resulted. That situation will only get worse in the coming years. The rise in borrowing rates started in 2022 resulted in builders delaying their plans to build, and housing starts in 2022 are down significantly from previous years.
One can blame the building department’s red tape process, high interest rates, government bureaucracy, and foreign investors, however none of that will change the fact that we have a drastic shortage that’s not going to improve in the short-term or even the medium term.
So, if there’ a high wind, one can wait for it to pass, or hire a master sailor to hoist the sails, take advantage of the weather and get you to your destination ahead of the others!
We are not master sailors, but we are master realtors. We know the market, we know the opportunities, (they are out there!) and we can help you navigate the intricacies of the real estate market.
If you have any questions about real estate, need help in refinancing, thinking of buying or selling, please give us a call and let us put our experience to work for you.
Opportunities abound, we would be happy to discuss them with you.
Have a great June!
Yours Sincerely,
Your Friends in Real Estate.
Mark and Keith
PS, we are never to busy to answer any questions that you or your family have.
The demand for housing continues to be strong! GTA realtors reported the sale of 9,012 homes in May, up 24% from last May’s 7,226. Sadly, new listings were down by 18.7% over the same period and as we all know it’s all about supply and demand. This shortage of homes for sale resulted in multiple offers on well-priced properties and brought the average sale price in May up to $1,196,101. This scenario is repeated in rental properties where bidding wars on rental units are no longer the unusual.
Toronto’s population continues to grow and our government’s commitment to increase immigration to 1.5 million over the next 3 years will only exacerbate the situation. For the last 20 years builders have not been able to build enough units to satisfy Canadian population growth and the increase in house prices has resulted. That situation will only get worse in the coming years. The rise in borrowing rates started in 2022 resulted in builders delaying their plans to build, and housing starts in 2022 are down significantly from previous years.
One can blame the building department’s red tape process, high interest rates, government bureaucracy, and foreign investors, however none of that will change the fact that we have a drastic shortage that’s not going to improve in the short-term or even the medium term.
So, if there’ a high wind, one can wait for it to pass, or hire a master sailor to hoist the sails, take advantage of the weather and get you to your destination ahead of the others!
We are not master sailors, but we are master realtors. We know the market, we know the opportunities, (they are out there!) and we can help you navigate the intricacies of the real estate market.
If you have any questions about real estate, need help in refinancing, thinking of buying or selling, please give us a call and let us put our experience to work for you.
Opportunities abound, we would be happy to discuss them with you.
Have a great June!
Yours Sincerely,
Your Friends in Real Estate.
Mark and Keith
PS, we are never to busy to answer any questions that you or your family have.