The Spring Market Scoop

What a spring market this was, as it took us all out of our slumber from March 2022 to the end of last year.  Almost as if it didn’t even skip a beat, and just resumed the expected activity of Bully Offers, Multiple Offers, and intense competition for Buyers.  A Seller's market once again -  as it has been for well over a decade now in Toronto.

What happened this year?  We all have our own interpretations and explanations.  The media headlines consistently have me dumbfounded though.  Where do they get their data?  Click bate, I guess.  The Market Handbook breaks down the data nice and neatly.  As quantitative as we can get in this business.

But to add some context to it, we have been noticing within our own client base that the consecutive rise in interest rates is preventing Sellers from upsizing their Real Estate.  Affordability-wise, they cannot afford much more than what they are currently carrying (offset by rising interest rates) therefore they are staying put.  Limiting the number of people selling at the moment.  First-time homebuyers are trying to get in.  Immigration is at a historical high.  So are the rents. All these combined factors have led to a supply depletion and pent-up demand.

Although the spring market was hot, we are watching the U.S. economy quite closely.  Initial projections assumed interest rates would begin to fall.  But with inflation numbers released, and the recent BOC quarter-point increase, we now anticipate an additional increase next month.

The spring market ran its seasonal course, as it typically does.  And the warm weather cooled the activity, as more listings hit the market over the past couple of weeks.  At the tail end of the spring market, we had some Buyers cruise comfortably into some solid purchases, where they were unable to get in a month or two earlier as they were bidding against competing offers sometimes in the double digits.

After a Sellers Spring market, at the least Buyers now have a bit of a breather and some inventory selection.  With a mortgage interest rate secured for 90-120 days prior to the recent interest rate increase, it is our opinion that right now is a good time to buy.

We are personally and professionally watching the U.S. dollar and economy ever so closely.  Some investors are hedging against the boom of Toronto real estate and investing elsewhere, whether it be in the U.S. or abroad.  But for a home to live in and a single-family residential dwelling (capital gains free investment), we still stand by staying put in the Toronto Real Estate Market.

Any questions?  Feel free to reach out.