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3 Tips For Anyone Looking To Pay Less And Buy Real Estate in Toronto Now

Astounding to take a step back and realize we have already completed the first half of 2021, with tremendous  confidence rebuilding in our communities. It has been unlike any other time in the history of the GTA’S Real Estate market. We have navigated a global pandemic; optimistically we have begun to emerge from a much needed pause in our economy and are returning to our new  “normal”. These factors, combined with continued low interest rates helped fuel demand. 

It’s hard to believe we have experienced the highest volume of sales and record setting prices in the history of the TREB in this pandemic. There is a lot of optimism regarding upcoming June Stats and they are expected to illustrate another record month that will help to aid  in the busiest 12 month period in the history of our Real Estate market.

The nature of our Real Estate market has been on one hand surprising as we have battled a global health crisis that has not been experienced in modern history. On the other hand, although shelter is a basic necessity, the importance of a home has never been more relevant. 

It is important to note that The Federal Bank strategy of ensuring the global financial system stays intact and the compounding growth of our population over the past 5 years are all factors that directly influence Real Estate values and demand. These factors, during a pandemic, have contributed significantly to what we are witnessing first hand in our current market. 

Going forward here are some points that will shape the remaining half of 2021 and will for sure direct the years to come. As the world continues to heal, travel resumes and confidence grows, believe it or not, our communities will continue to see significant demand for Real Estate. 

Canada’s declared goal of welcoming over 400,000 new immigrants each year to the country and  the fact that upwards of 50% of all newcomers choose our region as their destination will continue the pressure on demand. This reality combined with the natural supply limitations of a stretched development and construction pipeline indicate continued pricing pressure. We must also keep in mind the potential for inflationary pressure that historically results in interest rates rising over time.

This directly affects consumer purchasing power, which has in the past, placed temporary downward pressure on the Real Estate market. Experience shows that real estate prices do not go up in a straight line and have never, therefore we should not be surprised to see natural fluctuations over the coming years, with Real Estate ultimately becoming more expensive over time.

It is important to take a step back and put Real Estate into context. Since 1980, through the ups and downs of different economic challenges both local and global, the average sale price of homes sold through the MLS system of TREB have appreciated on average approximately +6.7% annually. Over the past decade alone average home values have increased from $465,000 in 2011 to $1,070,000 this year. It is hard to imagine the average sale price doubling over the next decade, however if history repeats itself like it has since 1980, we are heading in that direction.

As we move into the second half of 2021 we will be in uncharted territory. Incredibly in the previous 12 months there has been over 128,000 homes transacted , interest rates maintaining historic lows worked as a catalyst and with our communities emerging from 3 unprecedented lock downs we will likely witness another pivot. 

The optimistic perspective to have for buyers is that we will continue to see a healthy and sustainable level of pricing and transaction volume ahead.  Currently we are all likely enjoying time with friends and family, dinner on a patio, travel, a potential return to offices and pending return to schools in September, that being said Real Estate will continue to be a significant part of everyone’s life. Although values have increased significantly over the past 12 months, there will be great opportunities for those just beginning their real estate journey to those that have enjoyed decades of home ownership and are looking to make a change.

As  a Real Estate Professional who has spent the last 12 months navigating this challenging time, what we do know is that; facts, data and numbers matter. Deciphering data to deeply understand the market, results in high quality decisions that can and will make a positive difference in a Real Estate journey. So, over the coming weeks, months and years I continue to analyze the most recent data, and continue to provide exceptional advice/ guidance  to those interested in making high quality Real Estate decisions that improve the quality of their life and furthermore make a generational impact.

Here are 3 tips for any buyers looking to get into the market 

1. Be Prepared

The first step for anyone looking to get into the market is always being very clear where you stand financially. It is important to get the full scope of what costs are associated with buying a property along with the fees that are not included in the purchase price of a home. Some of these fees are often included

in closing cost. Each property will yield a different closing cost but it’s nice to have a ballpark idea. Some factors that make it hard to estimate an exact closing cost are; where the home is located, title search requirements, what the end use of the property is and if the home is a new build or a resale.  

Setting the stage and having a trusted Real Estate Mortgage professional to outline the extent of your financial capacity is vital to explore before going to see properties, this helps to outline your purchasing power and clarify what location and types of properties that qualifies for your home buying adventure.

2. Be Clear On What Is Non-Negotiable, So You Can Be More Competitive

When shopping for Real Estate there are so many moving pieces and countless possibilities so work very closely with your trusted Realtor to get a game plan in place. Areas of importance aren’t only what you can afford and how many bedrooms you want. Factors that play a major factor that don’t get much notoriety are; the type of market you’re in, the time of year you’re shopping in, the type of property you’re intending to buy. All of which come with a different strategy when executing your goal. Therefore  make sure to put all your cards on the table and be transparent with your Realtor so they can properly guide your process. Furthermore, be clear on what areas are non negotiable. Here is a great question that will help you to clarify where you stand. 

Are you willing to consider a different property type in order to get yourself into the market? Example, You want a detached home but based on budget you will have to explore other property types and or location…. Which are you more willing to change in order to get to your goal? Would you change where you are looking or would you consider the option of a Townhouse/ Semi- detached or a Condo Apartment?  The argument arises that a condo may not be a preferred option as paying condo fees is not something  that is  financially desirable. This is completely understandable but with that said, it is also important to note the advantages of getting into the market here and now. Moreover lets explore this topic further let’s analyze some Condo Apartment stats, it helps to see the numbers and where sale prices have trended over the years. 

Let’s look at the short time frame of two years ago to the present moment. The May’s 2019 condo market  data compared to May’s 2021  is what we will use to paint the picture. The average sale price of a condo in the Gta in 2019 was $590,876 versus 2021 which pushed the average sale price to $716,976.00 Thus on average those who purchase in 2019  have seen a growth in their investment of $126,100.00. The question is would you rather wait yourself out of the market hoping to get the property type/ location you desire or make some strategic decisions in order to get a property in which you can be paying down your investment while building equity? You can then contemplate selling the starter home and getting your true desire or keeping it as an investment property, pulling the equity and buy a property that is closer to your original desires? 

3. Think Outside Of The Box

In our current market place there is one thing that is for sure, due to several factors like the lack of inventory, price points are trending upward. Another strategy to expand your way of thinking in order to get you to your goal is one that may not work for everyone but it is an effective way to check all of your boxes when buying a home. If you are home shopping in a very desirable area that has proven to be more competitive than you financially can withstand, consider other means to obtain your goal. A good avenue to explore is what it would look like if you purchased in a location with much less demand and rent in your desired area. Let’s explore this more. For example as i write this article we are in the slowest phase of the Real Estate Market, which is the Summer Market but nonetheless there is 63 Detached properties in the Hamilton, Branford, Waterloo & Guelph area under the price point of $500,000.00 and 35 condo apartments in the same areas under $375,0000. These price points have not been widely seen in the GTA since 2014 for condos and late 2008 for detached properties. Thus would you consider buying outside your desired location, getting rental income for the property you have purchased while building equity? Then living in a rental in your desired location? This way you have the opportunity to accomplish your goal of getting into the market and most importantly not getting left behind by actively rising market prices, while  living in the area that makes the most sense for what your lifestyle is.

No matter if you are looking to get into the market as a first time home buyer, looking to sell, Invest  or you are looking to “smart size” as an empty nester, it is essential to make a well informed decision. Partnering with a Real Estate Agent that has a team of industry professionals is of the utmost importance. If you have any questions, never hesitate to ask. I pride myself on guiding my clients process and that includes market updates and having an in-depth eye on market trends to better execute your goals.


 If you have any questions  or there is a Real Estate initiative you need guidance with book a free zoom consultation with me by emailing me at and I’m happy to book a day/ time that works for you, so we can get all your inquiries answered. 



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