Real Estate Market Update - February 2024
The Greater Toronto Area real estate market continued to strengthen in February, as home sales and prices edged upwards across all market areas. Compared on a monthly and yearly basis, more homes in the GTA are selling faster and at higher price points. This resurgage in the real estate market is largely because buyers seem to be coming to terms with the elevated interest rates. As the Bank of Canada continues to hold interest rates, and experts predict rate cuts in the near future, buyers continue to re-enter the market. Some buyers have chosen to purchase in less expensive areas of the GTA or less expensive home types, in order to mitigate the impact of higher borrowing costs. Our resilient regional economy and high levels of population growth are also contributing to the tighter market conditions. The number of new listings are also up in February 2024 compared to January and compared to the same time last year, creating more choice for buyers. However, listings are not sitting for long on the market, creating low inventory scenarios in many parts of the GTA. Listings will continue to increase throughout the spring, and demand is also expected to follow suit. Reach out to me today to see how you can take advantage of these recent market changes. To see how prices have been affected in your area, please click the link below to get access to TRREB's January Market Statistics for all areas in the GTA. The stats are broken down by average sales price, number of homes sold, number of new listings, and average days on market for each property type; detached, semi-detached, townhouses, and condos. https://trreb.ca/files/market-stats/market-watch/mw2402.pdf If you want to know more about what is happening in your specific area, you can book a call with me by clicking the link below. https://calendly.com/davidrizzuto/consultation-call?back=1&month=2024-03
Toronto Homeowners Hit with Hefty 9.5% Property Tax Hike
Under a mix of scrutiny and support, Toronto City Council just approved the long anticipated 9.5% residential property tax hike - the highest increase the city has seen since 1998. The increase comes as no surprise for many, as the city attempts to close its $1.8 billion budget deficit. With the increase, Toronto home owners can expect to pay an additional $338 in property taxes this year. Toronto's budget staff originally proposed a 10.5% increase last month, but Mayor Olivia Chow and council chose to soften the blow after hearing perfuse concerns raised by home owners across Toronto. The city will have to dip into their reserve funds in order to make up for the one percent discrepancy. City council voted 18 to 8 in favour of the increase, along with the rest of Chow's proposed budget. Council has also passed a 2.95% property tax increase for multi-residential properties, 4% increase for commercial properties, and 8% increase for industrial properties. The budget includes a $126 million investment into affordable housing and shelters. These property tax hikes are seen as necessary for most city councilors and experts, as Toronto falls into deeper disrepair and debt. However, a handful of councilors and many Torontonians believe that such a large increase is unwarranted considering the current economic landscape. Some believe that the city is trying to generate more revenue from the wrong places. Even with the 9.5% increase, Toronto still has among the lowest property taxes compared to other cities in Ontario. Toronto, Vaughan, Markham, Richmond Hill, and Oakville have the GTA's lowest property taxes, while Brampton, Peterborough, Barrie, Hamilton, and Guelph have some of the highest property taxes.
Real Estate Market Update - January 2024
The Greater Toronto Area real estate market finally seems to be picking up again after a very slow end to 2023. Home sales were up in January across all market areas. Compared to December 2023, sales increased as much as 34%. Sales are also up considerably compared to last January. The amount of new listings also increased on a year-over-year basis, but not at the same pace as sales, resulting in tighter market conditions. Demand for real estate has risen since the holiday season, which is resulting in quicker sales, close to or above asking price, and in some cases, multiple offers. The recent dip in fixed mortgage interest rates has caused many buyers to re-enter the market. Sales prices are still holding steady, with no notable upticks or declines. On a year-over-year basis, average prices have not changed. However, as we enter the spring market, data is pointing towards renewed price growth. The Bank of Canada expects inflation to recede as we move through 2024, which would support lower interest rates. Experts are still predicting an interest rate drop in mid 2024, which would strengthen buyer confidence and further increase ownership demand. Over the next two years, the GTA real estate market will likely see upwards pressure on sales prices, as inventory remains low and buyer demand steadily increases. With the currently high average rents, many first-time buyers will take advantage of the coming lower interest rates, making the move to home ownership more affordable. If you would like to know more about how this changing market will affect your real estate plans, reach out to me. To see how prices have been affected in your area, please click the link below to get access to TRREB's January Market Statistics for all areas in the GTA. The stats are broken down by average sales price, number of homes sold, number of new listings, and average days on market for each property type; detached, semi-detached, townhouses, and condos. https://trreb.ca/files/market-stats/market-watch/mw2401.pdf If you want to know more about what is happening in your specific area, you can book a call with me by clicking the link below. https://calendly.com/davidrizzuto/consultation-call?back=1&month=2024-02
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