Toronto Real Estate Market Review - December 2023

The latest insights into the Toronto real estate market for November 2023 have arrived, offering a nuanced perspective on the current scenario. Typically, we delve into specific market segments, providing tailored advice for our clients. However, this month, we're starting with crucial advice that applies to both buyers and sellers.

Overview of the Market: The fall market concluded with a somewhat sluggish performance, except for pre-construction, which remained remarkably active. December, traditionally a slow month for real estate, has witnessed a further dip in activity. Buyers are adopting a cautious "wait-and-see" strategy, while sellers continue to list their properties. Notably, there are currently 31,440 homes listed for sale in Ontario, with Toronto-Proper seeing 7,228 listings, significantly higher than previous years.

Interest Rate Update: The Bank of Canada maintained its benchmark interest rate at 5.0% in its December 5th announcement, marking the third consecutive decision. With a weakening economy and easing price pressures, the focus now shifts towards potential rate cuts in 2024. The upcoming announcements are scheduled for:

• January 24
•  March 6 
• April 10
• June 5
• July 24
• September 4
• October 23
• December 11

Anticipations suggest a hold on January 24th, but a possible cut by March 6th, impacting the Toronto Spring real estate market significantly.

Advice for Buyers: Despite the current lull, this may be one of the best times to buy in Toronto. With a surplus of listings, low competition, and properties lingering on the market, now presents a unique opportunity. The prediction of a potential interest rate cut emphasizes the importance of acting before the market heats up. Focus on your monthly payment rather than the rate, as the current inventory features remarkable homes in top neighborhoods. Act now, or risk facing increased competition and bidding wars in the near future.

Advice for Sellers: Contrary to common advice, now might not be the ideal time to sell unless it's an absolute necessity. Sellers are cautioned to hold off unless compelled to do otherwise. If selling is inevitable, consider taking the next month or two to make improvements to enhance the property's appeal. Strategic upgrades, decluttering, and painting in January can position your property favorably when the market picks up. Additionally, having a knowledgeable broker by your side, one who assesses market trends regularly, will provide valuable insights for informed decision-making.

In conclusion, these insights aim to equip both buyers and sellers with a strategic approach amid the evolving dynamics of the Toronto real estate market. Stay informed, stay prepared, and make decisions that align with your unique circumstances. If you need any help with tackling you’re real estate journey, please do not hesitate to reach out. 

Best regards,

- Michael Simone