July Real Estate Update

Low interest rates, strong buyer demand and a low supply of homes for sale during the winter months led to rapidly increasing prices – buyers ‘panic purchased’ - but what the heck happening in June??

If you follow social media posts from Realtors (or if you're on their mailing list) you'll see words like "shift" or some comparisons to "prices up year over year" to instill confidence.   My guess is they have not had a listing for a while! 

So the June numbers are definitely showing, for the average home price in Toronto  that the market has slowed.  With higher interest rates, inflation and buyer nervousness, fewer homes are being sold and prices are down.   

Many buyers now are sitting on the sidelines – resulting in slowed showings, fewer offers (in bidding wars) and a return to conditional offers.  

Generally, higher demand areas are feeling this less – core Toronto, the Beach, Leslieville, West End. (often these areas are ‘protected’ from market changes)

Areas like Scarborough and Durham are feeling this more.   Key things to know:

- House prices are down in Toronto 20%

- Fewest transactions on record in many, many years

- House prices in Durham are down 25%

- "price floor" (lowest priced properties - mainly condos) have not seen declines

- rental market is hot - about 30% of downtown condos are renting over the list price.

What's causing this decline? 

Even though prices have declined, affordability has not been improved - take the example below.   This home would have easily sold for $1,300,000 in the spring.   Now, say it would cost you $1,100,000.  With the current interest rates, it would still cost you more to own this house.   

Also, remember the stress test? Where you, as a buyer have to qualify at a higher interest rate than your mortgage?  Well that's still around, and higher than ever.  So the qualification is even more difficult until the rules relax. 

Consumer confidence is shaky right now

Analyzing the numbers is one thing, but having a house listed for sale will quickly introduce you to the consumer attitudes that are prevailing, especially with Scarborough homes for sale (where the  home I have for sale is one of many, similar homes.  Buyers & buyer realtors used to ask about the house features.  Now they ONLY talk about price (maybe it's just the area this house is in, but they are very reluctant to talk about anything else).  

 How long will this last?

A lot of this is fueled by the bad economic news, interest rate hikes & recently the talk of a recession.   The impact of this type of media is the general belief that the sky is falling & the fact that this type of market brings out deal hunters.  The fact is with slower sales, there is more consumer choice.  

The last market dip lasted 5 months before prices rose, and about a year in most areas to recover the losses (2017-2018) if this is recession based, we may be looking at a few years before recovery. 

Other great content to check out if you're interested in Real Estate:

Pete Ly video on  what's going on in the Toronto rental Market 

Jordon Scrinko Video on Current Market (including Pre-construction & new build information)  

What type of Consumer are you?

The most important thing to consider when you buy a condo


Recent Blog Posts

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A disturbing trend I've come across recently is the fraud in the rental space.   As an agent who handles a fair share of rentals; these issues have shown up over several ways this year.   I'll tell you about 3 instances I've had and the red flags that appeared with each! 

When I'm representing a landlord and an application comes in, I spend a lot of time going through an applicants documentation and getting references and looking through their background.  Here's what I do:

  • Call their employer by finding the employer's website and calling through their office to confirm employment.  I don't just call the supervisor on the application
  • Look carefully at the documents to see if they are real; company letterhead & credit reports can be faked or bought
  • Check social media & linked in
  • Call past landlords
  • Make sure there is a building at the address they're currently renting
  • Check that the landlords name and property owners names match.   If it's an apartment building call through the property management company if it's an apartment rather than calling the number provided.
  • Look at the credit report for signs of altering

With those things in mind, let's look at 3 things that have happened to me this year!

1.  Student rental Scam - fake rental and landlord

First of all, you should never have to pay to submit a rental application, or be asked for a deposit before you get a chance to see the place.   These scams are generally ads on sites like Kijijii and Facebook for rentals that look too good to be true.  They also steal MLS listings for homes and advertise them at lower rates.  I came across one recently through a family friend desperate for some student housing.  It was a big scam; and when I called them out they 'protested too much'.    Here's how to spot these scammers:

  • They demand payment to submit a rental application
  • They demand a deposit before you see the unit
  • Makes excuses why they are not available to speak to on the phone 
  • Will only communicate through messenger, text or email
  • The advertised price is way lower than other rentals
  • Their Facebook profile was just created
  • Their Facebook name does not match their user name ID (see the URL) 

2. Fake Rental Applications   

There are some very good forged documents out there.  I had some people submit an application on a lease I was advertising and here's what I found during the checks, among the other checks I did as above :

  • Inconsistencies in addresses on the application
  • Employment letter does not look real - no header or footer with information on the company letterhead

3. Forged Tenacy Papers

I had a call from a gal who had a great story, good employment, good credit, moving to Toronto from outside the city for work, can't come in to look for a place so needed virtual showings.  Could I help her find a place.  Sounds great right?  

Now I don't usually check tenants out before I help them (and I'd helped out a client with an out of town move this year already in a similar situation)  But with everything going on right now, I felt it couldn't hurt to see what her references would say.   So she sent in her application & 

then came the paperwork - the address of her job didn't match up with her story.  The company had never heard of her or her supervisor.  There was even no property listed at the home she had put for her address!  Other red flags for scammers include what she did:

  • get overly upset when called out 
  • provide complicated excuses for 'mistakes' on application forms
  • call the fact checker a liar, unprofessional, etc.

So be careful out there folks! 


A big thank you to the communities of Guildwood, West Rouge & Port Union for the terrific support last Saturday for my Community Shredding Event.  About 30 families participated - and their generous food donations filled our Jeep to the brim!   The food donations were taken straight to Feed Scarborough - the Scarborough Food Security initiative and will be distributed to local satellite food banks in the area.   Judging from the huge line up outside the Manse Rd. food bank Saturday, it's much needed. 

Chartwell Guildwood was my partner for this event and provided the venue and great snacks.  Thank you Kelly & Dianne for your wonderful support.  As always, Papersavers was gracious, friendly, professional and helpful!  

One interesting sideline - My husband, myself, Dianne and Alex from papersavers all grew up within the same area!   Such a big city/small world!