“The leads are sh*t.”

A phrase we hear all the time in the real estate industry.

Sure, almost every industry says the same thing but it’s especially popular in real estate. People invest a lot of time and money into leads and many are not seeing a return.

Paying to generate leads online can be like buying a boat. The famous adage, “The happiest days in a boatowner’s life are the day they buy the boat and the day they sell it.” For many, that’s how their experience is with real estate.

Yes, you can find success with online leads

Yet, there are a lot of people having great success with online leads. Taylor Hack is one of them. His team does 140+ transactions a year in Edmonton with an average production per agent of 31 deals and a remarkable amount of five-star reviews.

Hack has a strong background in sales and it shows with a team that logs thousands of dials each quarter. With a significant amount of their business coming from online leads, Hack has worked with industry leaders in conversion to build a healthy and sustainable business.

We looked at why people think online leads are sh*t and how to solve that problem 

We started getting to know each other at industry events and then online and became fast friends. He looks at things more from a sales-first angle and I, the marketing-first angle. We’ve had a lot of passionate conversations over the years — often about the intersection of sales and marketing in real estate.

We’ve looked at why people think online leads are sh*t and how to solve that problem. We started talking this year on Zoom about it more and more and inviting people on to listen to our conversations.

These conversations started getting great feedback from those who came to listen. So, we started promoting it a little bit here and there. The more people who attended live, the better the feedback we got.

We’ve brought a few other great people from the industry on and have had great conversations with them, too.

Now we’re taking it up a notch with a hybrid podcast, live talk show & radio call-in show

This show will be called “The Leads are Sh*t with Taylor Hack and Andrew Fogliato.”

Every week we’ll talk about different aspects of the business. Sometimes we’ll bring guests on with subject matter expertise. We’ll even give Hack things to put in place in his real estate business and he’ll report back on the results.

This isn’t a traditional podcast. It’s a hybrid podcast, live talk show and radio call-in show. If you join us live you can interact over the chat and ask questions, or you can even come on camera and ask a question live.

Have a problem in your business you’re stuck on? Ask.

Have an idea you want to brainstorm? Ask.

Have a topic you want us to discuss? Tell us.

Our goal is to have this be a place you can join every week to help your business. We also want it to be an open book. If we’re talking about an idea and it gets tested, we’ll tell you the results. If it’s an untested idea, we’ll tell you that too.

If we invite a guest on, it’s someone we know has something of value to contribute and does real business. We’d rather find the people running a great business — it’s not about who’s famous and “in”. Instead, we want to find great operators and learn from them.

So come join us, every Thursday at 2:00 pm EST. Attend live to see what we’re working on and what’s getting results. Ask questions, engage and have fun.

We’ve set it up as a recurring webinar so you just need to register once to get the link sent to you every week to join. We’ll be posting the replays on the Real Estate Magazine YouTube channel.

Click here to grab a spot and start joining us live. Looking forward to seeing you there!

Ever get those missed calls from unknown numbers? You know, the ones you ignore and then Google to see who called? Well, guess what? This is what your leads are doing when they’re not picking up the phone. And it’s a golden opportunity knocking at your door.

Turn missed calls into clients

Imagine turning those missed calls into clients. Have you ever actually Googled those numbers to see what shows up when the leads Google the number?

This isn’t some far-fetched idea — it’s a real tactic that can boost your business. It’s a micro-moment that’s oft-neglected, especially when it comes to phone numbers tied to a CRM. CRM-based numbers are more likely to seem like they’re fake when calling. They’d have no history or results most of the time, which for many people is a clear sign of a scam call.

So, that snap judgment of, “Is this spam, a scam or a call worth answering?” is a critical moment. You don’t have long to convince someone.

Do these two things

You should do two things — the first is setting up a branded call display.

The second … Imagine this for a moment. They type your phone number into Google and the first result is:

“Did XXX-XXX-XXXX just try calling you? That was me!”

They’re going to click on that.

What to include in your call

The same way you respond to online leads, you approach this with:

1. A polite opening
2. A mutually agreeable fact
3. An easy-to-answer question

Tell them who you are, point out why you’d have been calling and then ask them a question.

So, that opening could be: “Hi, I’m Andrew with JSH Realty. You got a call from XXX-XXX-XXXX, you typed it into Google and now you’ve come here. Are you curious why I called?”

Then, you can list out the ways you collect leads and go into a call-to-action. These will be specific to your business.

This is a really easy backend page to put on your website. It will also be easy to rank at the top for your phone number since no one is trying to compete with you.

Turning missed calls into clients isn’t just possible, it’s a simple way to boost your conversion rates. By creating a dedicated phone number page, you provide potential clients with the information they need and make it easy for them to reach out to you. Start implementing this today and watch your missed calls turn into valuable client interactions.

By the way, if you want a PDF template of how the page on your site should be structured, just DM me on Instagram with PHONE SEO so I know what you’re looking for, and I’ll send you the PDF.

In the Greater Toronto Area’s (GTA) housing market, July 2024 tells a story of resurgence and adjustment. A previously stagnant market is now starting to revive, with home sales increasing by 3.3 per cent, reaching 5,391 transactions compared to last July’s 5,220.

This renewed activity is highlighted by an 18.5 per cent rise in new listings from the previous year, providing prospective buyers with more options. However, the revival also reveals contrasting elements — as supply grows and choices expand, the average selling price sees a slight decline, reflecting the complex dynamics between supply, demand and market pressures.

Across these shifts, the condominium sector presents its own scenario, with rental demand rising but being outpaced by an influx of new listings, resulting in more choices and slightly lower rents for tenants.

Significantly more listings helped boost supply and drop prices

July 2024’s GTA home sales rebounded from a previous stagnation and suggest a gradually recovering market. This increase in sales was matched by a significant rise in new listings with 16,293 in July, representing an 18.5 per cent increase compared to the same time last year. 

Clearly, there is an improved market supply, which helps to keep up with demand as prospective buyers have a much larger array of choices available. 

Source: TRREB

Despite the rise in both sales and new listings last month, the GTA’s average selling price declined by 5.0 per cent year-over-year. Reported at $1,106,617, it marked a 0.9 per cent (over $10,000) decrease from the $1,116,950 recorded in July 2023. The reduction in prices can be attributed to the increased inventory which has helped decrease demand pressure on the housing market.

Source: TRREB

Condominium sales and rentals

With this in mind, the GTA’s condominium market had mixed results. Condominium rentals experienced a substantial increase in Q2 2024 with 17,400 rentals compared to 13,896 rentals in Q2 2023. This was a 25.2 per cent increase, but the number of new condominium rental listings rose even more significantly, up by 51.3 per cent year-over-year. 

Source: TRREB

Despite the higher demand for rental accommodations, tenants have benefited from increased choice and slightly lower average rents. On average, a one-bedroom condominium apartment in Q2 2024 rented for $2,452, reflecting a 3.1 per cent decline from the $2,529 average rent in Q2 2023. Similarly, the average rent for a two-bedroom condominium was down by 1.9 per cent to $3,178 from $3,239 in the previous year.

Although there was a substantial increase in condominium rentals, condominium sales dropped to 5,474 in Q2 2024 from 6,824 in Q2 2023, a 19.8 per cent decrease. In contrast, the number of new listings surged by 36.5 per cent year-over-year, reaching 16,917. The average selling price of condominium apartments in Q2 2024 was $729,005 a slight drop from $737,925 at the same time in 2023.

Source: TRREB

Toronto reported a 0.5 per cent decrease in its average selling price of $765,963, while Durham has one of the GTA’s lowest condominium sales and lowest average prices in Q2 2024.

As we look at the GTA’s housing market for mid-2024, the combination of rising transactions and falling prices reflects a market in transition. A 3.3 per cent increase in home sales alongside a 5.0 per cent decrease in average prices highlights the balance between growing supply and moderated demand.

In the condominium sector, we’re seeing a similar trend — a significant rise in rentals contrasting with declining sales and a notable increase in new listings. This evolving market presents both opportunities and challenges, indicating that while recovery is underway, the future will be complex and multifaceted. Our 2024 housing market is more than just numbers; it illustrates the dynamic interaction of economic forces, buyer sentiment, and strategic adjustments.

Last week, the Calgary Real Estate Board (CREB) released its Q2 2024 housing market report, which offers an overview of the real estate landscape in Calgary and surrounding areas and showcases trends in sales and pricing.

A seller’s market with sales-to-new listings below 80% for first time since Q1 2023

New listings have risen for the fourth consecutive quarter compared to last year, with many gains in the upper price ranges of each property type — rising prices and high lending rates have encouraged more sellers to list their properties. This increase caused the sales-to-new listings ratio to fall below 80 per cent for the first time since Q1 2023.

However, the market continues to favour sellers with a Q2 sales-to-new-listings ratio of 75 per cent and a months-of-supply of one month.

Slower sales thanks to lower-priced properties, though still above trends

In the second quarter, sales slowed by three per cent compared to the same time last year. This was mainly due to lower-priced properties with the lowest supply levels. Despite this, sales levels were 29 per cent above long-term trends and, after the year’s first half, nearly six per cent higher than last year.

“The unexpected surge in migration over the past two years has contributed to the demand growth and supply challenges experienced in the Calgary market,” says Ann-Marie Lurie, chief economist at CREB.

“While we still have to work through the pent-up demand, slowing migration levels and supply gains in the resale and new home markets should start to support more balanced conditions, taking some of the pressure off home prices.”

 Source: CREB

Home prices have risen by 10 per cent so far this year — with the biggest gain occurring in row properties at 19 per cent and the smallest growth occurring in detached and semi-detached homes at 13 per cent.

What’s next

CREB predicts that increased supply from the new home sector will help support a better-supplied market, including for rentals, and reduce pressure on home prices.

Slowed price growth is expected throughout the year’s second half as supply increases, though this will mostly impact higher-priced properties. The board says more price increases will affect the most affordable property types with persistently tight conditions.

Review the full report here.

Last month, Calgary had 2,738 residential sales, 13 per cent less than last year’s record high, the Calgary Real Estate Board (CREB) reports. However, this is over 17 per cent more than long-term trends.

“The pullback in sales reflects supply challenges in the lower price ranges, ultimately limiting sales activity,” says Ann-Marie Lurie, chief economist at CREB. “Inventory in the lower price ranges of each property type continues to fall, providing limited choices for potential purchasers looking for more affordable product. It also continues to be a competitive market for some buyers with over 40 per cent of the homes sold selling over list price.”

Inventory and prices

New listings were also lower in June, which left the sales-to-new-listings ratio at 72 per cent. At 3,789 units, inventory was improved compared to last year, but this is 40 per cent below long-term trends.

Months of supply is relatively higher, at 1.4 months, with rising prices in all districts and conditions favouring sellers. June’s unadjusted benchmark price was $608,000, almost nine per cent higher than last year.

Source: CREB

Detached homes

There was a 16 per cent year-over-year sales drop in detached homes across the city, with new listings 45 per cent below long-term trends for June and 1,775 detached homes in inventory. At $767,600, the unadjusted benchmark price was almost one per cent higher than in May and 12 per cent higher than the year prior.

Semi-detached homes

New listings were low in this property type last month, with the sales-to-new-listings ratio up to 76 per cent for semi-detached homes. With just over one month of supply, inventory remained at about half of what’s typical in June. The unadjusted benchmark price rose one per cent from last month and 12 per cent from last year, reaching $686,100

Row homes

Row home sales slowed in June relative to the past two years, and this property type’s sales-to-new-listings ratio fell to 75 per cent, the lowest June level since 2021. With about one month of supply and an unadjusted benchmark price of $464,600, about 17 per cent higher than last year, conditions are tight.

Apartment condominium homes

791 apartment condominium home sales occurred in June, nearly eight per cent less than last year. This was mainly for lower-priced properties. However, year-to-date apartment sales are up by 13 per cent and at record-high levels. Sales-to-new-listings fell and inventory was up, but mainly in higher-priced properties. Prices increased by over 17 per cent from last year, reaching $344,700. 

Where buyers are going for more affordable homes

Calgary’s market has been going strong, including from a huge amount of interprovincial migration to Alberta last year. That said, it remains relatively affordable compared to other major Canadian markets, and there are several areas in the city where buyers can get a single-family home for $500,000 or less, a recent report from Wahi reveals. This was found in 40 neighbourhoods between January and May this year.

The southwest part of the city is home to the 10 most affordable of the neighbourhoods with two in Northwest Calgary and a third in Northeast Calgary.

Source: Wahi

Bidding wars for Calgary’s single-family homes under $500,000

Despite the relatively lower home prices in some areas, about 65 per cent of the city’s neighbourhoods where the median price of a single-family home was below $500,000 were in overbidding territory through the first five months of the year.

Southwest’s Cedarbrae was leading in this, with selling prices about nine per cent above asking. The neighbourhood with the lowest single-family home median price ($295,000), Woodlands in the southwest, saw overbidding by five per cent.

The city’s higher-priced neighbourhoods and properties are also being overbid, as nearly half of Calgary’s neighbourhoods were in overbidding territory from January to April.

Review CREB’s full reports for the city and region.

Sales results really shouldn’t be a struggle. Many business owners and realtors find prospecting to be labourious perhaps because they are doing the wrong things. These things include focusing on what they like in their business, rather than what is actually needed to succeed. But it’s time to level up and win.

Volume focuses on achieving the sales numbers — it’s purely based on the quantity of leads that come in and the deals that you close.

On the other hand, refinement involves the quality of sales and customer interactions. Refinement strategies zero in on improving customer satisfaction and building long-term relationships over the long haul. Here, customer feedback is extremely valuable.

Here are some tips on implementing volume and refinement strategies.

Strategies to boost sales volume

1. Expand your market. Identify new target markets or demographics. Who else can you reach out to? What problems can you solve in different markets?

By focusing on and expanding your ICP (ideal customer profile), your results will surely come. Research emerging neighbourhoods, cities or regions with high growth potential. Keep up with real estate trends (price changes and economic factors). 

2. Generate leads. Do the grunt work yourself or hire others to do it for you. Invest in activities like advertising, content marketing, SEO and cold outreach. Develop a robust online presence through social media and create a strong website.

Focus on the activities that bring in results. Do more than you think in at least one or two of those areas, and refine your approach later.  

3. Provide incentives. As a senior sales executive or broker, you need to motivate your sales team with performance-based incentives. We often hear about this, but it truly moves things along. When your team members feel important, they will work harder.

A great commission or bonus can do wonders to boost motivation, for example. You can base quarterly or annual bonuses on overall performance. 

Strategies to boost sales refinement

1. Use a CRM system. By tracking important conversations, you learn about your customers. You can take measures to improve interactions and strengthen overall customer service. Customer feedback should be analyzed. Always identify what you can do better.

The number one interest of real estate agents is to capture more leads. Lead management through a CRM (customer relationship management) system will automatically capture leads from various sources, including your website, LinkedIn and other social media as well as listing sites.

2. Get professional sales training. Continuously train your sales team on best practices. Keep them up to date on product knowledge. Find out what areas individual reps need to work on (cold outreach, content marketing, following up, etc.). By investing in such training or coaching, the productivity of your sales reps will increase. In-depth training on the local market, including neighborhood specifics and zoning laws will greatly benefit agents.

3. Add a personalized touch. Tailor your sales approaches and marketing messages to individual customer needs. Offer additional services that enhance client experiences. Providing after-sales support to demonstrate your care is crucial for maintaining relationships, encouraging referrals and reinforcing your overall reputation as a broker or realtor.

Pitch, test, refine, try again

Volume provides quick gains. Whether achieved through digital marketing, open houses or networking, your overall outreach increases. The idea is to test what works. Begin by doing a ton of cold calls, posts on social media, etc. Then, go back and refine your message, your sales script and how you connect with customers after the sale.

Testing what works is uncomfortable. No one likes to feel like they don’t have it right, but that’s exactly where it all begins.

Refinement provides sustainability. By understanding your clients better, you serve them better. As you move forward in your business, remember that a balanced approach to volume and refinement strategies is great for learning and improving sales.

Saskatchewan reported 1,841 sales in May, which was a six percent year-over-year and 24 per cent long-term average increase, according to the Saskatchewan Realtors Association (SRA). The province also saw new listings go up, though strong sales are keeping inventory at its lowest levels since 2008. This is most prevalent for properties priced below $300,000, a very competitive segment.

The residential benchmark price was $340,400 in May, up from $339,800 in April and over four per cent higher than May of last year. All property types saw price increases, the highest being in apartment and row/townhouse-style properties.

“Our housing market continues to report strong monthly sales figures despite persistent inventory challenges,” says SRA CEO Chris Guérette. “An eleventh consecutive month of above-average sales is quite impressive when you consider how challenging it can be for prospective buyers in some markets in our province right now.”

Regina

The City of Regina reported 440 sales in May, a five per cent year-over-year gain and 32 per cent above long-term trends. New listings were slightly up, though strong sales left inventory nearly 50 per cent below long-term trends, with 1.69 months of supply.

Regina’s benchmark price of $320,000 was up from 319,800 in April and two per cent higher than May 2023.

Saskatoon

Saskatoon reported 573 sales in May, a seven per cent year-over-year and 28 per cent long-term average increase. Inventory levels decreased by 21 per cent year-over-year and are almost 50 per cent below long-term trends. Saskatoon reports the province’s lowest inventory levels.

The city’s benchmark price of $397,200 was down from 398,600 in April and nearly six per cent higher than in May 2023.

“While the provincial months of supply fell below three months in May, conditions remain much tighter in our two largest centres – as Regina and Saskatoon are again reporting less than two months of supply,” says Guérette. “With further rate cuts on the horizon likely to spur additional demand — and no immediate inventory relief in sight — we expect tight conditions to continue to place upward pressure on prices across the province.”

Review May data by province, city, CMA/CA, region or census division.

Whether you have been a real estate professional for ten years or one year, there are some realities we all need to face in the world of #RealtorLife. Especially when things get tough.

We know there are agents out there who are crushing it! They seem (according to their Instagram stories, anyway) like they sell houses every day and are living the high life. Not a great thing to see when you’re staring at your phone and wondering why it’s not ringing. Are your notifications turned on? Did you accidentally put it on airplane mode again? How can you rev up that motivation that you started this career with? How can you build momentum and get more sales on the books?

It begins with YOU, and it starts today.

Use whatever your personal motivation preference is

Everyone finds motivation in different ways. Some people (present company included) get all riled up at sales conferences. The energy! The boost of confidence! The ideas! It can feel great listening to a powerful keynote speaker or reading an inspirational personal development book. On the other hand, others find those conferences akin to torture.

Whatever your personal preference is for motivation, use it. As Zig Ziglar said, “People often say motivation doesn’t last. Neither does bathing — that’s why we recommend it daily.”

It’s actually a lot of fun to learn about what motivates you. Because when you find it, miracles can happen.

If you’re a quotes-are-inspiring kind of realtor, here are six that help me dig in and find that first spark of motivation when I’m feeling a little less than awesome in this business.

6 quotes to find that motivational spark

These first two quotes are about how just starting is the point. While we can be frustrated that others seem to be so much further ahead or that we’re late in the game, the key is getting started (or re-started) TODAY.

“You don’t have to be great to start, but you do have to start to be great.”

 

– Zig Ziglar

“The best time to plant a tree is 20 years ago. The 2nd best time is now.”

 

– Chinese Proverb

The next two are from my favourite real estate mentor, Mr. Brian Buffini. They’re about believing in your abilities and knowing the secret lies within YOU. These two magic sentences have accompanied me through some very frustrating times.

“If they can do it, I can do it.”

 

– Brian Buffini

“I did it before; I can do it again.”

 

– Brian Buffini

These last two are essential because they focus on the power of belief and how thoughts are things. If you have watched or read The Secret, by Rhonda Byrne, or Man’s Search for Meaning, by Viktor Frankl, you know that the mind is a very powerful tool. In my experience, the powers of belief and manifestation are crucial to success.

“Whether you think you can or you think that you can’t, you’re right.”

 

– Henry Ford

“If you can’t fly, then run. If you can’t run, then walk. If you can’t walk, then crawl, but whatever you do, you have to keep moving forward.”

 

– Martin Luther King Jr.

Find a few inspirational quotes that speak to you and print them out for your office wall, or put them somewhere you’ll see them. You’ll be surprised when that little spark of motivation shows up and starts to build. This is where you can give yourself some goals for the day.

Make a list and check things off

Fun fact: checking off list items (or highlighting them, if you are extra geeky like me) releases dopamine, which can fuel even more motivation, in my opinion. Here are some examples of what you can add to your list:

• Call 10 clients (or people in your network) and see how they are doing or if they have any questions about the market.
• Write 2-3 personal notes or emails with a market update on the latest stats.
• Drop off a small gift to a couple of your favourite clients or business associates.
• Send a mini-CMA to clients who have been in their homes for 2-5 years.
• Post a market update or support a local business on your business social media page.
• Touch base with any clients who have been on the fence.
• Complete something for your business that you’ve been putting off.

Get moving

Another way to start the motivation flow is to get moving. Literally, go for a walk. I get my best ideas when I’m on a walk or working out. If you’re trying to solve a problem or are unsure about something, think about it while walking.

Sometimes, I use my walking time to call clients or listen to a podcast or an audiobook. Currently, I’m listening to a great book by Chris Voss and Steve Shull, called The Full Fee Agent. It’s an easy listen, and Voss has great things to say about understanding human behaviour.

When you’re feeling down, as we all do sometimes, remember that YOU are your biggest resource as an entrepreneur. So, you need to get to the bottom of what you (and all of your uniqueness) need to stay at the top of your game. And once you get going, there’s no telling what AWESOMENESS you’re capable of.

Last month, Saskatchewan reported 1,642 sales, an increase of 32 per cent year-over-year, the Saskatchewan Realtors Association (SRA) reports. It was the fourth consecutive month of above-average sales, making year-to-date sales almost 17 per cent above 2023’s.

New listings up but total inventory 40% below 10-year trends

Though new listings were up slightly, total inventory was down 16 per cent year-over-year and 40 per cent below 10-year trends. This was especially the case for properties priced below $300,000.

“Economic growth, employment gains and record population numbers continue to support strong housing demand in Saskatchewan, resulting in a tenth consecutive month of above-average sales in April,” SRA CEO, Chris Guérette, notes.

“These factors are, without question, boosting housing demand — as evidenced through rising sales in the resale market and falling vacancy rates in the rental market.”

‘Approaching uncharted territory’ in Regina and Saskatoon

The province’s residential benchmark price reached $339,800 in April, up from $334,500 in March and almost five per cent higher than the year prior. Prices rose across all property types in April, by five per cent in detached and semi-detached property types and by 13 per cent in apartment-style properties.

“With just over three months of supply provincially, our market continues to experience significant supply challenges. However, the conditions are far tighter in Saskatoon and Regina, with both markets reporting under two months of supply in April,” says Guérette.

“We’re approaching uncharted territory in our two largest markets right now — it’s an incredibly challenging time for prospective buyers out there. If supply challenges persist, as expected, we will likely see further price gains in these markets.”

Regina

Regina reported 424 sales in April, a year-over-year gain of over 50 per cent and 52 per cent above long-term trends. Inventory conditions were tight, with a 30 per cent year-over-year decline and levels over 46 per cent below 10-year trends. The city’s benchmark price was $319,800, up from $313,100 in March and nearly three per cent from April 2023.

Saskatoon

Saskatoon reported 522 sales in April, a year-over-year gain of almost 29 per cent and 34 per cent above 10-year averages. Inventory levels decreased by 21 per cent year-over-year and are close to 50 per cent below 10-year trends. The city’s benchmark price was $398,600, up from $394,300 in March and nearly seven per cent from April 2023.

Review April data by province, city, CMA/CA, region or census division.

2024 may not be getting a “spring market”. In April 2024, the Toronto housing market saw a decline in home sales compared to April 2023, when we saw one of the strongest spring markets in Canadian history, measuring price growth from January to May 2023.

This muted demand was compounded by a substantial increase in new listings year-over-year, offering home buyers more options and resulting in a relatively stable pricing environment. The Toronto Regional Real Estate Board (TRREB) reported a five percent year-over-year decrease in sales, accompanied by a notable 47.2 percent rise in new listings. Despite a slight dip in sales compared to March, the trend of increasing new listings suggests that the market is favouring buyers as we head into summer.

Source: TRREB

Painful lesson learned: The type of economy that necessitates rate cuts

TRREB President Jennifer Pearce attributed this surge in listings to homeowners anticipating heightened demand for housing during the spring season. The data suggests that demand is absent this year, likely because of the slumping Canadian economy and an uncertain interest environment: 

Pearce suggested that while sales are expected to rise, potential buyers may be waiting for the Bank of Canada to initiate interest rate cuts before committing to a purchase. My suspicion is that the economy is learning the painful lesson about what kind of economy necessitates rate cuts — and it’s not a good one.

The MLS Home Price Index (HPI) composite benchmark experienced a marginal decline year-over-year, with the average selling price increasing slightly, as it typically does. Prices usually increase from January to May in any given year, but this year has been markedly slower than most.

TRREB Chief Market Analyst Jason Mercer noted that buyers benefited from increased choice in the market, resulting in minimal fluctuations in selling prices compared to the previous year. Looking ahead, Mercer predicts tighter market conditions and renewed price growth, especially with anticipated lower borrowing costs, though I’m not sure I agree with his optimism.

Recession headwinds move supply curve more than interest-rate optimism moves demand curve

I feel that the headwinds of recession in Canada appear to be moving the supply curve more than interest-rate optimism is moving the demand curve. Furthermore, the average mortgage renewing in 2025/2026 needs to see more like 350 basis points of rate cuts. A reduction of this magnitude seems unlikely unless we see a severe recession, which isn’t something anyone should be wishing for right now. 

Mercer emphasized the need for alignment in government policies to address affordability and housing supply issues effectively. He highlighted the importance of bringing enough housing online to accommodate future population growth while also balancing government spending to combat inflation. Alignment across housing policies is deemed crucial for achieving long-term affordability and choice for residents in the GTA.

The state of condominiums

In the first quarter of 2024, against the backdrop of record completions this year, the GTA witnessed a moderate increase in condominium apartment sales compared to the same period in 2023. However, this growth was overshadowed by a greater annual rise in the number of condominium apartment listings. With buyers enjoying more options, the average selling price of condominiums experienced a slight decline.

Total condominium apartment sales reached 4,747 in Q1 2024, marking a 5.3 percent increase year-over-year. Concurrently, new condominium listings surged by over 23 percent during the same period.

In Q1 2024, the average condominium apartment selling price in the GTA was $693,754, representing a one percent decrease compared to the same period in 2023. In Toronto itself, which accounted for most condominium sales, the average selling price was $723,186, down by 0.5 percent from Q1 2023.

In the first quarter of 2024, the Toronto housing market witnessed a significant increase in condominium apartment lease transactions, as reported by TRREB. Both the number of transactions and the volume of rental listings increased year-over-year, providing renters with more options and leading to stabilized average rents compared to the previous year.

Condominium apartment rental transactions rose by 19.7 percent to 12,541, while rental listings increased even more substantially, by 51 percent over the same period.

Despite the rise in rental supply, the average rent for a one-bedroom condominium apartment dipped slightly, by 1.2 percent to $2,441 in the first quarter of 2024, while the average two-bedroom rent remained unchanged at $3,139.

Looking ahead, Mercer anticipates continued absorption of available condominium units as the number of new households in the GTA continues to grow. He expects an increasing number of renters to transition into homeownership over the next year as borrowing costs decrease, narrowing the gap between rent and mortgage payments.