Toronto’s July real estate market was weak. Although transactions were up 2% from last July and average prices were similar, the year-over-year comparison is against a soft July 2023 market. Average prices were down for the second month after seeing monthly increases from January through to May 2024. The July 2024 average price was 8.8% less than the peak 2024 average price in May but 13.3% higher than January 2024.
The market softness is primarily on the demand side. The 50 basis point decrease bringing the overnight lending rate to 4.5% has not been enough to offset increased interest costs when the overnight lending rate was 0.25% in March 2022. Despite an increasing population, with affordability being such an issue, July 2024 year-to-date sales of 15,256 is 19% lower than the 5-year average spanning 2020-2024.
From the supply side, July 2024 year-to-date new freehold listings are only 1.8% lower than the July YTD 2020-2024 average.
This is in stark contrast to the condo market (apartment and townhouse) which has seen a 20% increase in July year-to-date listings as investors sell off units due to unfavourable regulatory (e.g. Landlord and Tenant Board delays and Tenant-friendly regulations) and tax (non-deductibility of expenses for short term rentals) framework.
With about 3 months of freehold and 6 months of condo inventory, the summer market will be quiet. Recent Ipsos polling says that it will take at least interest rates to decrease by 100 basis points before most buyers come back into the market.
Inventory will likely begin to clear in the fall as expectations are for another Bank of Canada interest rate cut on September 4, 2024.
Shen Shoots the Breeze:
It’s the height of summer and I’m sure for most of you, you’ll be taking time off to relax and enjoy the pleasures that the warm weather brings. Ontarians are lucky to have so many freshwater lakes within a 2-3 hour drive from the city to enjoy.
Dave and I discovered since returning from Hong Kong over 20 years ago, that lazing around the water is one of the great pleasures and beauties of returning home.
I wanted to share some of my favourite summer discoveries in cottage towns we’ve visited. As always, I’d love to hear what activities you like to do (especially those that are off the beaten track):
Muskoka region:
Rousseau Market – every Friday starting end-June. I love getting the fruit strudels there from the strudel lady.
Crossroads – lovely restaurant with good portion sizes; great for special occasions but still with cottage casual ambience
Port Carling – lots of little shops, restaurants. The Roots located in town sells Muskoka-branded sweats that you can only get up there.
Bracebridge – best cranberry brie bread at Big River Baking Company and amazing Mexican food at El Pueblito (they don’t take reservations so try to go there during the weekdays vs a Saturday on a long weekend)
Muskoka Summer Show– I really enjoy going to this 3-day event which features local artisans from around the area.
Parry Sound and surrounding
Bearly Used Books – great for a rainy day; you could browse for hours
Gillys – fresh fish n chips; you can also boat right up to the restaurant
Euchre every Friday night at 7 pm in Hurdville. Our friend, Jenn Bowler won highest score when we played over the Canada Day long weekend.
Pancake breakfast – some Saturdays over a long weekend in Hurdville. Crispy sausages, hot coffee, OJ and maple syrup. Just show up, by donation.
On route up:
Barrie Hill Farms – savour the local fresh fruit and vegetables.
There are many egg stands in cottage country that sell eggs by the honour system.