Real Estate Update June 2023

July 2023

Dear Friend,

The hunger and desire for home ownership was very evident in June’s sales activity as 7,481 homes sold on the Toronto Real Estate Board, up 16.5% over June of 2022. Despite the uncertainty surrounding the Bank of Canada’s outlook on inflation and interest rates, buyers were out and active and the average home price increased due to the high demand and low listing inventory of homes available for sale.

It seems that we continue to be heading for a perfect storm for the housing market, a storm that will continue to drive prices even higher than they have been before. Let’s review the elements of this coming storm:

1. A resilient economy that refuses to slow down despite sharp increases in borrowing costs.

2. A serious lack of homes for sale

3. Fewer homes being built as builders slow down construction due to higher borrowing costs.

4. Government red tape slowing building permit approvals.

5. Anticipated population growth with 1,500,000 new immigrants to Canada by 2025.

6. Generation Z (those born from 1995 on, representing 20% of the population) and looking to get out of their parents’ homes and explore life.

As a real estate agent, I am constantly asked, “How can people afford today’s prices? Well, to be blunt, those who can afford to buy in Toronto will buy and those who can’t afford to buy in Toronto will buy outside of the city where prices are more affordable and those who cannot buy will rent, pushing up rental rates.

Unfortunately, demand is out pacing construction. How high can prices go? Look at New York, Paris, or London to get a preview of Toronto’s future prices.

My experienced recommendation has not changed over the last several years. “This is a great time to buy a real estate investment property or upgrade your home.” If you are considering these options, I strongly recommend that you consider doing it sooner than later.

There is good news! You have a friend in real estate! Give me a call, let’s explore your options! Let me use my experience and knowledge to help you and your family!

Have a great July.

Your Friend in Real Estate.