FROM THE DESK OF IRENE VALMAS
With summer here and a new government leading this great country, one would expect to see improvement in the real estate market and the Canadian economy. This is not the case. An ongoing tariff war with the United States and no direction or budget from the Federal Government has Canadians remaining uncertain about their future. Until a tariff deal is reached and this new government releases a budget which creates a more positive environment for the private sector, the Canadian economy and by extension the Canadian real estate market will continue to underperform.
However, it is not all bad news. The Toronto housing market did show signs of improvement in June. The overall number of sales for the month was down only 2.4% year-over-year which is a noticeable improvement when compared to March, which was down 23.1% year-over-year. With lower borrowing costs and a more buyer friendly market, more Torontonians are taking advantage of lower prices as home ownership becomes a more attainable goal.
For those of you who like to see the stats, here they are:
SALES
Sales in June were down 2.4% y.o.y. with 6,243 sales last month compared to 6,397 in June 2024.
In contrast, May sales were down 15.6% y.o.y. with 6,231 properties changing hands compared to 7,206 for the same period last year.
PRICES
Average Monthly Sale Prices Q2 of 2025 compared with 2024.
|
Month |
Avg. Price 2025 |
Avg. Price 2024 |
|
April |
$1,107,463 |
$1,152,868 |
|
May |
$1,120,685 |
$1,167,646 |
|
June |
$1,101,691 |
$1,164,491 |
|
Prices remained consistent over the second quarter without any meaningful decline. Overall, unemployment is up at 8.8% in Toronto. Canada’s inflation number is way down at 1.9%. It feels like the entire economy is being propped up by government spending with a $96 billion deficit projected for this year. Hopefully, the fall budget will provide a boost to consumer confidence and investment spending. What can you expect for the remainder of 2025? A slowly improving market. Although Q1 was likely to be the worst quarter we will see this year, we are not expecting a great improvement in the real estate market through the end of 2025. What should you do if you are a Buyer? The bottom feeders are in the market and that is a good sign. Savvy buyers are negotiating some great deals by taking advantage of motivated sellers stuck in a market with excess inventory and few people actively looking to purchase. We are expecting similar buyer conditions for the remainder of the year. What should you do if you are a Seller? If you have to sell now, then price your property to sell. As a Seller, it is natural to dislike bottom feeders and lowball offers but they are part of the market recovery and we should be grateful they are there. It has to start somewhere. If you are thinking of selling, ask me how to best get the balance right between Price, Appearance and Traffic so your property sells in the shortest amount of time. What is new for Landlords: July and August are the best months of the year to find a tenant. Although there is substantial inventory available, first year students should be looking to find a home for the start of the school year in September. Rents are down and pricing your property accordingly is key to avoid costly vacancies. For Tenants: The summer months are not the best time to find a new apartment. Inventory numbers usually drop to yearly lows, and you can expect much more competition when applying for apartments. If you are thinking about Buying or Selling or if you are a landlord with property to lease, please feel free to contact me.
IRENE VALMAS/I.V.REAL ESTATE Sales Representative 416.368.5262 [email protected] - www.bradjlambrealty.com |
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