February 2024
Dear Friend,
A great start to 2024! Despite the winter weather and the higher than usual borrowing rates, January’s 4,223 sales were 37% higher than January 2023. The desire for home ownership remains high! Unfortunately, while the number of new listings was up, they were only up 6%, highlighting tighter market conditions and raising the specter of bidding wars to come. When? Well, it has already started to a lesser degree, but will really become headline news as the Bank of Canada starts cutting its borrowing rates, likely in the second half of 2024.
Toronto real estate prices reflect immigration to Canada.
As our population continues to increase, and the government's lack of response to keeping housing starts at a level to satisfy demand, prices have risen and will continue to rise dramatically. While all levels of government talk about increasing housing starts, it seems to be more of an opportunity to garner votes rather than solving the problem. As I have been saying for years, the land is there, and builders are willing and able. The governing bodies are just not willing to change or streamline a red tape system that takes years to get a building permit rather than months.
How about building more rental unit buildings to supply demand? Good idea! But with an unreasonable rent control system and a poorly and unfairly implemented Landlord and Tenant Act, few builders are prepared to build rental units. While the idea of rent controls is a good one, unless it’s properly implemented, being fair to all parties, it eventually fails all parties.
While the situation is challenging, it represents an opportunity. House prices and rents will continue to increase! If you are considering upgrading your current home, or looking to purchase an investment property, great real estate opportunities exist today! If you have a child who will be entering university in a few years, perhaps a pre-construction condominium might be the right fit. Give me a call, let's talk, after all, you have a friend in real estate.
Have a great February!
Your Friend in Real Estate,
Mitra
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