The November 2023 Toronto real estate market stats are in! And usually each month I break down segment by segment what’s happening in the market and provide advice to my clients about what to do within these segments if you’re buying or selling.
But this month is a little different because I will start with some major advice for buyers and sellers.
The Overall Market
The fall market is officially over and to be honest, it was a bit sluggish, except for pre-construction which was incredibly active.
Many listings hit the market during September, October and November – some sold but many are still sitting. And now that we’re in December, which is typically the slowest month for real estate, things are even quieter.
Buyers have been sitting and waiting – waiting to see what’s going to happen with interest rates, waiting to see what’s going to come on the market, and waiting to see what the competition is doing. Literally a wait-and-see strategy.
But sellers are still listing homes and condos. Many would like to sell, some are testing the market, and some need to sell.
Did you know there are currently 31,440 homes listed for sale in Ontario? That’s a lot of listings.
In Toronto-Proper, there are currently 7,228 homes listed for sale, which is historically much, much higher than previous years.
So where are the buyers? They’re waiting and seeing, as I mentioned earlier. So many have pre-approvals in hand but aren’t making offers. But that could be one of the biggest mistakes they make.
Interest Rate Announcement
The Bank of Canada left its benchmark interest rate unchanged on Wednesday, December 5th as market watchers shift their eyes toward rate cuts in 2024.
The central bank kept its policy rate at 5.0% in its third consecutive decision and its final rate announcement of 2023.
In a statement announcing the widely expected hold, the Bank of Canada pointed to a weakening economy and easing in price pressures like consumer spending as signs that tighter monetary policy is working to bring down inflation.
Overall inflation cooled sharply to 3.1% in October, down from a peak of 8.1% in June 2022. Canada’s economy meanwhile contracted in the third quarter with a steeper drop than most forecasts expected.
The outlook for 2024’s announcements are scheduled as follows:
- Wednesday, January 24*
- Wednesday, March 6
- Wednesday, April 10*
- Wednesday, June 5
- Wednesday, July 24*
- Wednesday, September 4
- Wednesday, October 23*
- Wednesday, December 11
A quick prediction – we’re going to see another hold on January 24th, but as we approach March 6th, I think we’re going to see the first cut that’s going to send the Toronto Spring real estate market spinning faster than we can imagine.
What does that mean for buyers and sellers? Let’s take a look.
Advice for Buyers in Today’s Real Estate Market
Now could potentially be one of the absolute best times to buy in Toronto that we’ve seen in a very long time. With the overflow of listings on the market, the time of year, coupled with no competition and listings that have been sitting for months, you could get the house or condo of your dreams, that you never thought possible before.
Yes, many will clutter your mind with “what about the rates” and “wait until rates go down” but I promise you, that once that first rate announcement happens that shows any kind of cut, every buyer in town will be making offers.
That means competition, bidding wars and inventory that’s going to be depleting quickly. All of those buyers sitting on the sidelines are going to jump in and think they’re the only ones with this strategy, and boy will they be wrong.
That’s why I’m saying get into the Toronto real estate market right now. OK so December is busy so if you can’t make time, hit the ground running in January, BEFORE that first interest rate announcement. Because you just never know.
If you’re buying, don’t you want to take your time looking, finding the perfect home, getting a home inspection, examining the status certificates for condos, and making offers with confidence rather than blind hope? This is what I wish for all of my buyer clients, and now is a dream buyer’s market. But it’s not going to last long, and the end is near.
So, let’s take on all of those nay-sayers that say now isn’t the best time to buy, and that you should wait until rates come down. I’ve done this exercise in the past, but I’ll show it again here.
Right now, is the time to get into the market. Focus on your monthly payment and not the rate. There is so much inventory available in the market and the homes out there are amazing and in the top neighbourhoods in the city.
Rather than following the heard saying rates are too high right now to buy, look at your situation and assess what you can afford monthly. A good financial deep dive will help you immensely.
Advice for Sellers in Today’s Real Estate Market
Many agents will tell you that now is a great time to list. My advice – DO NOT SELL right now. Unless you are in a situation where you absolutely must sell, pump the breaks and don’t do it. You’ll be doing a disservice to yourself and will only face disappointment.
I understand that sometimes you need to sell. I had a client who had no intention of selling, but they were casually looking in the market for their forever home. Taking their time, looking at all of the amazing homes out there, and in their favourite neighbourhoods, they ended up finding their dream home for a price that even I could hardly believe.
So that meant they had to sell. But they went into the listing process knowing they were going to get less for their home than at the peak of the market, but the upside on the buy made up greatly for the lower price they got on their current home.
If selling is in your future, my advice is to take the next month or two to make those improvements you’ve been thinking about. When rates drop and the market starts to peak, you’ll want your house or condo to be looking perfect.
Get painting in January, upgrade where you can, do some decluttering, tidy up and get ready. Because when the market hits you’re going to want to be ready to list at a moment’s notice.
Also, get a very good Broker on your side – one that works the numbers weekly, and examines what’s happening in your current neighbourhood, and also in the neighbourhood you want to be in. Get reports, keep in touch and be educated on the real facts, not just what the headlines say.
So that’s my report this month – some honest advice for those in the market and those interested in being in the market.
Working With Me at TRB
I hope you’ve found this useful – my background is based on numbers (I was the head of finance for a big Toronto ad agency before real estate), so my approach to the market is very numbers-focused for my clients.
Something you may not know, (but hopefully you do) is that I help many clients buy and sell real estate daily. I am the Founder and Lead Broker of Toronto Realty Boutique and I specialize in listing homes and condos, representing buyers of all budgets, and I also do a lot of work in the Toronto pre-construction market.
If you would like to see the November market stats, I’ve posted them on my Instagram account so you can see where each market segment sits. Here is an easy link for you to use to check them out: https://www.instagram.com/p/C0uEiRDvWWM/
If you’re thinking about buying or selling and want a Broker who can not only represent you better than anyone else but who can also sort through the numbers and help you make the best move, don’t hesitate to contact me anytime.
~Romey Halabi
Founder & Lead Broker, Toronto Realty Boutique
416-999-1240
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