What are the most recent trends in the past 90 days in the Toronto real estate market and its laws - and how can this impact you?
The Toronto real estate market has experienced significant trends and shifts in the past 90 days, shaping the landscape for both buyers and sellers. These trends have important implications for real estate laws and regulations, and understanding their impact is crucial for making informed decisions in the upcoming months.
#1 - Single-Family Homes
One of the most notable trends in the Toronto real estate market is the increase in demand for single-family homes. The pandemic has prompted many buyers to seek more space, leading to a surge in prices for detached and semi-detached homes. This trend is likely to continue, and buyers should be prepared for intense competition and potentially higher prices when searching for a single-family home. Conducting thorough research, working with a knowledgeable real estate agent, and getting pre-approved for financing can help buyers navigate the competitive market.
#2 - Virtual Home Tours and Listings
Following the pandemic, buyers are turning to digital tools to view properties without physical visits. However, this shift towards virtual interactions may lead to changes in disclosure requirements. Sellers and real estate professionals may need to provide more detailed information about a property's condition or features in online listings or virtual tours.
Current Toronto MLS® stats indicate an average house price of $1,169,053 and 5,952 new listings in the last 28 days. As of today, Toronto housing data shows median days on market for a home is 15 days.
#3 - New Condo Developments
Furthermore, there has been an increase in the number of new condo developments in Toronto. While this offers more affordable housing options, concerns about oversupply in the condo market have been raised. Buyers should carefully consider market conditions and potential risks when investing in condos, as oversupply could result in price drops. This trend may also prompt policymakers to introduce measures to stabilize prices or encourage the development of more affordable units.
#4 - Federal Ban on Foreign Homebuyers
Recent changes in Canadian laws have also impacted the Toronto real estate market. The federal ban on foreign homebuyers, effective since January 2023, aims to stabilize the housing market and provide more access to Canadian citizens. However, experts suggest that the ban may have minimal impact on housing affordability due to larger factors like high interest rates. Buyers and sellers should be aware of these regulations and exemptions to ensure compliance and understanding of the market dynamics.
Takeaways for buyers and sellers
Sellers should ensure proper disclosure of property defects to potential buyers to avoid legal action. Being aware of any issues with their property and disclosing them transparently is crucial to maintain trust and comply with the law. Sellers may also benefit from exploring virtual tour options and leveraging online listings to reach a wider pool of potential buyers.
It is important for all parties involved in real estate transactions to stay updated on the evolving legal framework governing the Toronto real estate market. Changes in disclosure requirements, regulations for short-term rentals, zoning laws, and financing regulations may occur in response to these trends. Consulting with legal professionals and staying informed about new laws and regulations will help buyers and sellers navigate the market successfully and ensure compliance with the law.
*Disclaimer: This article does not constitute legal advice, this should be used for informational purposes only. Please contact Saleh Law for a proper legal consultation.