Newsletter

The days of multiple offers and skyrocketing prices are gone and are not predicted to come back anytime soon. Now, there are exceptions to every rule, but for the most part, the strategy of vastly unpricing your home and expecting a bidding war is not advantageous. The crazy days of Covid in the early 2020s are still fresh in all of our minds, so psychologically, sellers still believe their homes are worth what they were worth then. Take a look at the graph above. You’ll notice the average value of a home in Canada spiked in 2022. That was 3 years ago, and there has been a steady decline to more manageable and realistic levels since then. Homes are still worth 50% more than they were 10 years ago. RBC recently posted that the Canadian real estate markets are starting to rebound from some historical lows at the beginning of the year; however, “markets in Southern Ontario and parts of B.C. – the country’s least affordable areas – remain especially soft. Activity is close to cyclical lows and will take time to rebound to more robust levels.” The graphic below is a stark reminder of where we were and where we are today. The total number of sales in Canada spiked to over 750,000 in the first quarter of 2021. Juxtapose that against April 2025, where the were fewer than 450,000 sales. For context, look at the 3rd quarter of 2022 to the first quarter of 2023, this was the time of rising interest rates, which caused widespread fear and halted the market in its tracks.

It’s not all doom and gloom. Home resales were up 8.4% from April to May which is the sencond monthly increase in a row. Where is the silver lining? Quite simply, It’s a great time to buy! There is more selection and less buying competition, putting the leverage smack dab into the buyer’s hands. Average home prices are down 4.5%, which means you’ll get less when you sell your home, but you’ll get a lot of value for your dollar when you purchase. If you are interested in investing, now is the time! Buy low, sell high! We are steadily moving towards a more balanced market. The window to buy and upsize won’t be this unbalanced for long. It won’t automatically flip to a Seller’s market. Come the fall, we should be entering into a more balanced market. What happens from there is anybody’s guess. Don’t wait if investing or upsizing is your plan. Take advantage of the market when the conditions are right for you. Lean on the knowledge and experience we provide and alleviate some stress by letting us manage the business end. You’ll appreciate our hands-on approach to customer service and our dedication to providing everything you need and desire. Reach out to Tate Homes today and take the first step towards your dream home!

There are over 100,000 realtors in Ontario, if you look at the statistics, you’ll find that over half of those agents do less than 1 deal a year. The top 5% do over 45% of all the deals in any given year. There is a wide disparity between those who do and those who don’t. Any reputable agent will tell you that the majority of their business comes from referrals and repeat clients. At Tate Homes, we have over 40 years of experience cultivating our database, and we continue to add to it daily. We are very proud to say that 85% of our business comes from repeat clients and referrals. No two clients are the same, and every opportunity comes with its own set of expectations and circumstances.

Despite the overwhelming presence of the internet and social media, word of mouth remains the most valuable form of advertising. It’s one thing to read a 5-star Google review, but it’s completely different when someone you trust makes a recommendation. It’s very difficult to find someone who doesn’t have a family member, friend or neighbour who’s a realtor. There are so many realtors that most know more than one. The competition for new clients is fierce, therefore, your reputation must stand on its own. We are proud of the reputation we’ve built. Let us do the work for you so you can move through the biggest financial decision of your life with confidence and optimism. Let’s get started!

Welcome to 2025! We aren’t even 6 weeks into the year, and it’s already been a year of upheaval. The political landscape changes hour to hour thanks to our friends down south. This has created a sense of panic and uncertainty in Canadian politics and all aspects of Canadian society. With so much misinformation circulating, let’s concentrate on facts and what we know to be true.

If there is one question we at Tate Homes get asked more than anything else, it would be, “How is the Real Estate market going to respond?” It would be naive to say the state of affairs globally and nationally doesn’t have any effect on the Toronto housing market. They do, but how much? Is it a positive or negative effect? How does it affect the buying or selling of a home? Unfortunately, there are no crystal balls or magic eight balls to provide the answers to these questions; the answers to these questions are subjective and vastly different depending on who you talk to.

Here’s what we do know: In 2025, approximately 1.2 million fixed-rate mortgages are coming up for renewal (Canada-wide). The majority of these mortgages were assigned during the pandemic. At the time, interest rates were below 1%. Those days are gone, and renewing your mortgage in today’s environment would include an interest rate somewhere around 4%. That’s a number that, unfortunately, a lot of Canadians will not be able to afford. The 6 major Canadian banks (RBC, TD, BMO, CIBC, Scotia, and National) are fully aware of this and the battle to keep and attract new clients has already begun.

Competition is good for us, the consumer. Competition drives prices down and offers more selection opportunities. The average Canadian monthly mortgage payment sits at $1984. This is already 40% higher than it was just 5 years ago. Total mortgage debt in Canada is currently north of 150 billion! The Canadian banks are scrambling to secure the largest piece of the pie possible. Here are some examples of the promotions and rates being offered:

–TD is focused on growing its RESL (Real Estate Secured Lending) division. They are currently offering a cash bonus of $4,100 for opening a new mortgage or HELOC (Home Equity Line Of Credit). Their 3-year fixed rate sits at 5.09%, down from 6.94%.

–RBC rates are even lower at the time of publication. Canada’s largest bank offers 4.89% on 3 and 5-year mortgages (or 4.95 on a variable rate). They are giving away rebates and Avion rewards to any switches or new mortgages.

–CIBC’s rates match RBC. They have committed to renewing the mortgages that are coming up for renewal as well as attracting new customers with a $4500 cashback promotion for anybody willing to switch lenders.

–BMO is looking to expand with a $4100 offer to potential clients. They are currently offering a 4.59% rate on 5-year fixed mortgages.

–Scotiabank has introduced its Scotia Mortgage+ program, which offers discounts and “preferred” mortgage rates for bundling multiple banking products together (Investments, mortgage, insurance, credit cards, etc.).

–The National Bank, which has 80% of its mortgages in Quebec, is offering $5,800 for mortgage transfers.

With the Bank of Canada continuing to see inflation stabilize, the majority of prognosticators are projecting further rate cuts, although at a slower pace. The Bank of Canada currently sits at a manageable 3%. So what does all this mean? At Tate Homes, we firmly believe all signs point to a robust Spring market. We are already starting to see Inventory rise, and with that, demand is increasing. After a very quiet 2024, all signs are pointing to a very loud 2025. This is your year and your time! Tate Homes is here to guide you through every step of the process. Give us a call today, and let’s get started!