Gooooood morning! This is the Toronto real estate newsletter that's as exhilarating as Donald Trump dodging death by an inch. Buckle up because like the U.S. elections, this may be the climax of our inventory!
Here’s what we got for you today:
✍️ BOC to cut rates on Wednesday
📊 Inventory is starting to fall?
🔍 Realtor exposes 3 bedroom Brampton home housing 19 students
✈️ Housing costs are driving NEW Canadians to flee
Toronto
Overall
Inventory
10,285 (-0.79%)
Sold
290 (-10.77%)
Toronto
Detached
Inventory
2,268 (-2.83%)
Sold
104 (-10.34%)
Toronto
Condos
Inventory
6,735 (-0.43%)
Sold
138 (-9.21%)
Stats as of 9:30am EST.
WEDNESDAY’S RATE DECISION
The Bank of Canada is expected to announce a 0.25% cut in the interest rate this Wednesday, bringing it down to 4.50%. This is following a previous cut in June and is part of efforts to control inflation and support the economy. Recent data showing that inflation is easing, with the Consumer Price Index rising only 2.7% in June, adds to the optimism for another rate cut.
Market Reactions
Bond markets are reacting positively, and some lenders have already started lowering fixed mortgage rates. This is great news for homebuyers and those looking to refinance, as they might get better deals soon. However, many buyers are still waiting for further rate reductions before making any big decisions.
How You Can Use This News
Talk about how the rate cut can benefit buyers and those refinancing their mortgages. Highlight potential savings and improved affordability.
Post quick updates about the expected rate cut and its implications. Use eye-catching graphics to show potential savings on mortgage payments.
Send out an email explaining the upcoming rate cut and why now might be a good time to consider buying or refinancing a home. Include examples of how lower rates can impact monthly mortgage payments.
Some Talking Points For Your Calls:
Market Insights: Chat about the anticipated rate cut and how it could lower mortgage rates, making it a good time to buy or refinance.
Personalized Advice: Offer tailored advice based on their financial situation, showing how the rate cut could make homeownership more affordable.
Encourage Pre-Approvals: Suggest getting pre-approved for a mortgage now to lock in good rates and be ready when they find the right property.
IS INVENTORY STARTING TO FALL?
From analyzing our weekly statistics we saw the week of July 8th to 15th with a 0% change in inventory and this week with a -0.79% decrease in inventory. This was paired with an 21.27% uptick in condo sales during the week of July 8th to 15th.
With this movement and the predicted Wednesday rate cut looming, have we seen the top of our inventory for 2024? It’s certainly a possibility! If we continue to downtrend moving into next week it will be a strong indicator that we have and that we need to prepare for how we can handle this shifting environment.
How You Can Use This
Create content explaining the importance of tracking inventory and how it dictates how you need to play the market.
Share your findings of us potentially hitting the top of supply. You’ll be sure to grab some attention especially with media outlets pushing the narrative of high supply.
Explain how a shift in inventory growth can completely change the strategy for those looking to buy and sell.
Some Talking Points For Your Calls:
Current Market Trends: Highlight the recent 21% increase in condo sales and the slight drop in inventory, suggesting a potential market shift. Use this to emphasize the current buying opportunities.
Impact of Upcoming Rate Cut: Mention the anticipated rate cut on Wednesday and discuss how it might indicate we've reached peak inventory for the year. This can help create urgency for clients considering buying or selling.
Future Market Shifts: Discuss the potential for continued inventory decline and the importance of strategizing now to navigate the shifting market conditions. Offer personalized strategies based on these trends.
3 BEDS, 19 STUDENTS
Earlier this week, a realtor shared a wild story about being called to list a townhome in Brampton. The catch? This three-bedroom home was being rented out to 19 students! The realtor decided not to list the property due to the potential headaches involved. He pointed out issues like, what if the home sells but the students don’t move out? Going through the Landlord Tenant Board (LTB) for eviction could take 2-3 years. Frustrated, he remarked, “no wonder this country is going down the drain.”
Market Reactions
This story highlights some serious challenges in the rental market. Overcrowding can be a huge issue, and the lengthy process of evictions through the LTB can deter potential buyers. It also underscores the importance of knowing what you're getting into when taking on a listing.
How You Can Use This News
Share this story and discuss the problem with having/purchasing overcrowded rental properties. Offer tips on how to handle similar situations and emphasize the importance of due diligence.
Post about this story to spark discussions. Ask your followers what they would do in this situation and share what you would do if you were approached with this listing.
Include this story in your newsletter as a cautionary tale. Explain the risks involved in renting to multiple tenants and the importance of understanding tenant laws and regulations.
Some Talking Points For Your Calls:
Real-Life Insights: Use this story to illustrate the complexities of property management and the importance of being aware of tenant issues.
Advice for Landlords: Offer advice to landlords on how to avoid overcrowding issues and ensure their properties are compliant with local regulations.
Preparing Buyers: Warn potential buyers about the risks of buying overcrowded rental properties and the long timelines for evictions through the LTB.
NEW CANADIANS RUN FROM EXPENSIVE HOUSING
High housing costs are pushing many new Canadians to consider leaving the country. Recent surveys show that around 39% of immigrants who have been in Canada for less than a decade are thinking about moving to other provinces or even leaving the country entirely. This trend is particularly strong in expensive cities like Toronto and Vancouver, where a significant number of residents are contemplating relocation due to unaffordable housing.
Market Reactions
Many new Canadians are looking to move to more affordable regions like Alberta and the Atlantic provinces. These areas offer lower housing costs and better job opportunities, attracting people from pricier provinces. This interprovincial migration is reshaping communities across Canada and influencing local real estate markets.
How You Can Use This News
Discuss the trend of new Canadians moving due to high housing costs. Highlight the benefits of relocating to more affordable areas and share success stories of families who have made the move.
Post updates about this trend and engage your followers by asking if they have considered moving due to housing costs. Share insights on affordable housing markets.
Include this topic in your newsletter to inform your clients about the shifting trends in the housing market. Offer advice on how to navigate these changes and find affordable housing options.
Some Talking Points For Your Calls:
Market Insights: Use this story to discuss the challenges of housing affordability and the benefits of relocating to more affordable regions. You can also talk about the downsides of relocating that no one is talking about.
Personalized Advice: Offer tailored advice to clients who might be struggling with high housing costs, suggesting areas with better affordability and job prospects.
Encourage Exploration: Suggest clients explore housing markets in more affordable provinces like Alberta and the Atlantic region, where they might find better opportunities and lower living costs.
At the end of the day, most people won’t make the move. By providing your database with information and helping them explore they will naturally trust you more.
BITE SIZED NUGGETS
A message for foreign students. Students are being told they “Can’t all stay” in Canada after graduation due to new visa policy reviews aimed at managing immigration and the labor market.
The short king of tiny homes is here. This tiny home in Toronto is basically a small trailer attached to a bike. Honestly looks pretty decent especially if that means not paying $2,500/month in rent 👀
