Hello friends,
 

What a welcome relief it is to watch the streets of Toronto re-awaken as we see outdoor patios filled with happy patrons and customers wandering into local shops. I believe we are in for a wonderful summer ahead as the city continues to prioritize it's vaccine efforts. 

Our May 2021 real estate market continued a two month trend of plateauing. While March 2021 saw a record breaking number of sales in the GTA (over 15,000), April came in closer to 13,000 units sold and May had approximately 11,000 transactions. Our expectation is that June will ultimately see about 10,000 sales.  Having crested in March, we are pleased with this moderation in the market.  Average sale prices remain exceptionally strong but the dynamics of the market have shifted.  Buyers have pulled back from the frenetic pace of early spring when we could see hundreds of  showings on a single property and 25 or more offers.  We are watching more listings being cancelled when their low offer price (intended to stir up bidding wars) didn’t bear the expected result and re-listed at  fair market value.  The average sale price in Toronto shifted down slightly from a high of $1,126,266 for the week of June 7th to $1,113,723 for the week of June 14th.  We expect these market conditions to continue for the balance of the summer before an expected autumn up-tick in September.

If you are considering a real estate sale or purchase in 2021, or if you are just wondering how the market as a whole impacts your personal investment, please reach out - I would love to chat. 

Our inbox is the gateway to our work and personal life. I know how important it is for all of us to try and curate our email content so that it is both manageable and enjoyable. If at any time you would rather not receive this newsletter, you can opt out by unsubscribing per the link at the bottom of this email with no hard feelings!  As always, stay safe and we look forward to seeing you all again very soon.  
 

Thank you for reading,

A number of themes became clear in August, themes that will drive and impact the Toronto and area residential resale market for the remainder of this year and no doubt into 2022.
 
The first and most important is supply. In August only 10,609 new properties came to market. This contrasts sharply with the 18,599 that came to market in 2020. What is even more shocking is that at the end of August there were only 8,201 properties available to buyers, a 51 percent decline from the same period last year when buyers could choose from 16,662 properties. Available properties were reduced to their lowest level in over a decade. A chronic problem has now become critical.
 
The critical nature of the supply problem is glaringly evident in certain sub-sectors of the marketplace. At the end of August there were only 337 semi-detached properties available for sale in the entire greater Toronto area. This number is shocking but becomes eye-popping when it is remembered that in August 750 semi-detached properties were reported sold. That means that we enter September with 55 percent fewer semi-detached properties available for sale than the total number reported sold in August. Only the City of Toronto’s central districts have more semi-detached properties available at the beginning of September than sold in the month of August, and only marginally at that.

These numbers make it clear that during the current election campaign, the only housing item on all parties platforms should be supply! Platforms that speak to making purchasing properties easier – ie. longer amortization periods, government assisted loans, reducing mortgage insurance premiums, tax free home buying savings accounts – are misleading at best and reckless at worst. They are blatant, unhelpful, self- serving promises that hope to pave the way to being elected. Supply and ways to achieve it should be the only words uttered by politicians at this time.
 
The second theme that emerges is the disparity between the 905 region marketplace and the City of Toronto (416). The pandemic and its impact on the house buying consumer has been dramatic. Before the pandemic house prices (on average) were lower in the 905 than in the City of Toronto, nor did house prices rise as quickly in the 905 region. That has all changed.
 
In August the average sale price for the 905 region was more than $1,050,000. In the City of Toronto it was $1,000,000. Prior to the pandemic these differences were reversed. Also, the increase in average sales prices was more startling in the 905 region than in the City of Toronto. In the 905 region detached properties increased in value by 26 percent, semi-detached by 21 percent, townhomes by 20 percent and even condominium apartments increased by almost 15 percent. By contrast in the City of Toronto detached properties only increased by 11 percent, semi-detached by 4 percent, townhouses by 8 percent, and condominium apartments sales prices by 7 percent.
 
The explanation is three fold. Firstly there is less supply in the City of Toronto, except for condominium apartments, house prices are still pricier in the City of Toronto, and the pandemic, which has intensified the need for space and safety, coupled with the ability to work remotely, has driven buyers to the suburbs and secondary markets.
 
The third theme that has emerged is the plateauing of average sale prices. Yes, August’s average sale price of $1,070,911 for all properties sold was 12.6 percent higher than the average sale price achieved in August 2020 ($951,219), but it has steady declined since May’s stratospheric record breaking average sale price of $1,108,362 and has stabilized at approximately $1,073,000.

The President of Chestnut Park, Chris Kapches, has provided a wonderful overview of the May market.  Please click on the link below to hear Chris’ summary.

Now more than ever, it is vital that we continue to support small local businesses. From time-to-time, I highlight some of my favourites and will continue to do so until we return to our ’new normal’. Please consider reaching out to these wonderful entrepreneurs - I know you won’t be disappointed. 💕

Rachel Wolkoff started Lollipots 20 years ago and my children are very thankful that she did!  Her creations sit on the table at most of our celebrations and are always received with great happiness.  Here is Rachel’s story:

"I started Lollipots 20 years ago. My inventory was mostly handmade lollipops planted in hand painted terracotta pots (Lollipots)! I was very active for a few years, making centre pieces and going to sell my wares at all the local craft shows. Unfortunately, being a stay-at-home mom with 3 young kids, didn't allow for me to continue. Flash forward to Oct 2019. With the encouragement of my now grown children, I started Lollipots up again, but this time there was social media, and I introduced my Kitkat boxes and boards to my inventory!  It has been such an amazing 1.5 years! I work with each customer to make sure they are getting something that is personalized just for them. I am truly blessed to have a job that brings huge smiles to the recipient's face! Please follow me on Instagram @lolli.pots. Thank you!"

I have been ordering cakes from Sharon for several years now - for special occasions and everyday enjoyment too. While many bakers create visually stunning cakes, Sharon’s masterpieces always taste as delicious as they look! With inspiring flavours like caramel apple (our favourite), buttery banana and nutty pistachio, it will definitely be a “diet starts Monday” indulgence.  She is a graduate of Canada's premier art and design school, OCAD and her talents are clearly evident in her designs. You can find Sharon on instagram @bloom_cake_co or via email info@bloomcakeco.com. The last picture was done for my son Cole’s acceptance to Queen’s Commerce.  It truly tasted as great as it looked.  
 

We are thrilled to announce that nurse Tory won our #healthcareheroes instagram giveaway!  Working in tandem with Sachi Co Gifts, we filled a gift box with beautifully curated treats to pamper those for whom the last eighteen months have been so challenging. We added in a $200 Uber Eats card - because who wants to cook after a long shift at the hospital! 

Tory has worked as an operating room nurse at Mt Sinai hospital in Toronto for five years. At the height of the pandemic, the need for available hospital beds increased significantly. As a result, surgeries were often delayed or cancelled with surgical staff redeployed to assist with ICU needs. Tory and her colleagues not only rose to the challenges they faced but did so with compassion and top quality care. We salute and thank Tory and all of our #healthcareheroes!