Cruel Summer - what Taylor Swift and Toronto real estate have in common: July 2023 Market Update

Clarity is power, especially when it comes to home ownership and real estate investing. And that’s exactly what buyers and sellers are missing right now. Clarity 💎. July’s stats from the Toronto Regional Real Estate Board tell a story that edges towards balance, but uncertainty continues to loom and many are feeling the effects of this “cruel (market) summer.”🌅 Yes, we thought a Taylor Swift play on words seems appropriate with the announcement of Toronto dates for the Eras Tour. Finally!🙌

The Market Right Now🏘️

The number of home sales, new listings and prices were all up again in July as opposed to this same time during the summer of last year. However, it’s important to note that both the number of home sales and sale prices are now down for the second month in a row, and the number of new listings is down since June.

Although things appear to be on the up from last year (which does suggest that many home buyers have adjusted to higher borrowing costs), we are still presently on a decline.📉

What’s Actually Happening🧐

To put it all into perspective and better understand why this is happening we can look closer at what we are seeing ‘boots on the ground.’ It’s quiet. Quiet in real estate means: more listings and less buyers. It means less shoes at the front door of open houses. It means longer days on market and little to no bidding wars. Summer seasonality combined with economic uncertainty due to rising rates (again), inflation ups and downs, unemployment, and overall affordability of everyday essentials are all contributing to a quieter real estate market.

What Does This Mean🤔

Simply put: this generally means that there are more homes for sale than there are buyers that are interested in getting approved for a mortgage or that are wanting to buy and be bothered by the frustration and expense of a move (unless they have to or really want to. All of these factors bring us closer to a balanced market and is somewhat of a reprieve from the market mayhem of previous years. Tactically it means that there could be great opportunity for buyers that missed a slower market with lower prices earlier this year. And sellers, don’t lose heart at all! The demand for home ownership in the GTA will remain strong on the back of record population growth in months and years to come, and numerous neighbourhoods and home types will maintain strong sale prices despite the slow decline we are experiencing right now.

Navigate With Experts👨‍💼👩‍💼

If we can encourage you with anything right now, please don’t try to do this on your own! Lean on the expertise, skill and experience of professionals to ensure you are protected and make smart, effective decisions based on your personal plans.

Our award-winning real estate team is here to help. Call📞 or DM📲 us anytime to get started, have a convo, or set up a no-obligation consultation to chat.