When is the Best Time to Buy a Home in Toronto?
Spring real estate market is a very busy time. In the Spring every would-be home seller has a for sale sign on their freshly trimmed lawn, real estate agents buzz in the busiest time of the year and homebuyers come out of the winter hibernation. Everyone wants a deal, everyone wants to sell and the market is flooded with a fresh inventory of homes to sell. More homes are up for sale or sold during the Spring time than any other period of the year.
Spring is also the worst time to buy a home. Why? Because while there is more selection, there’s also more competition from other buyers. Spirits are up and people are willing to bid and pay extra. (Which means Spring is technically the best time to SELL your home, but first you should determine what your Toronto home is worth.
In contrast Summer is a slow time of year. Too many people go on vacation and home selling or buying isn’t a priority. The slow season is actually better for homebuyers because there is less competition and you’re more likely to have your offer accepted… especially if the sellers listed their home in the Spring and have yet to receive an offer. The sellers have become tired and are more willing to accept a lower price for their home.
The best day of the year however is not in the Summer. It’s actually Christmas Day. There are advantages to buying a house on Christmas Day.
1. Almost nobody looks at homes on Christmas Day. There is zero competition.
2. People on Christmas Day are usually in a good mood, celebrating and enjoying time with their family.
3. People are more inclined to be generous, lowering their price.
4. If they’re trying to sell their home during the Christmas season they’re serious about selling.
Of course if you can’t wait until Christmas there is no time like the present. You could start now by getting home listings by email or searching local real estate listings in Toronto in the comfort of your home.
Toronto Bidding Wars Moving from Houses to Two-Bedroom Apartments
As the Bank of Canada continues to raise interest rates with the improving economy, more homeowners
are selling their properties, but instead of buying a new home they are renting, driving up the cost of
renting in major cities. With the real estate market cooling and the cost of mortgages expected to climb
as interest rates go up these owners are sitting on their cash and hoping housing prices will cool down
enough for them to buy a house at a discounted rate.
Susan Isenstein and husband Norman sold their Toronto home 24 hours after it was put on the market
last month. They were looking for a home with fewer stairs, but have been having difficulty finding
something in their price range. “So you can’t find what you like, and then there’s the concern about
whether or not prices are going to go down,” says Susan.
Such homeowners who cashed out at the peak of the real estate market are aiming to put their money in
the bank rather than investing in a house. As a result there are a whole slew of new renters looking for a
good place to rent and they are engaging in bidding wars to snap up rentals that are comparable to the
properties they just sold. This is putting pressure on the supply of houses for rent in major cities.
The vacancy rate in Toronto is 2.2%, 2.7% in Vancouver, two of the lowest in Canada.
If house prices fall 10% in the next year, a possibility cited by both TD Bank and CIBC World Market
economists, a $700,000 house in Davisville Village or Leaside could be worth a mere $630,000 a year or
two from now (Find out how much your Toronto home is worth). Some homeowners apparently
think that is worth the gamble of selling their current home, renting in the meantime and then trying
to buy a comparable property in the same neighbourhood two years from now when the market has
cooled down.
But it’s a gamble. The high demand in the Toronto real estate market could just as easily drive housing
prices up instead of down. In such a big city there are so many ways to find a new home… word-of-mouth, craigslist,
search listings, you can get home listings sent to you by email, real estate agents, or just driving
around in neighbourhoods that you like and looking for “for sale” signs. So what can we make of all these changes? As someone so wisely said, “the only constant is change”.
See Also:
Are Toronto Housing Prices Up or Down?
Have You Had Enough Fear-Mongering?
Why Retiring Baby Boomers Hold The Key to The Future of Housing
Linda L. – Toronto, Ontario
Dear Rosalin,
I would like to thank you for handling my recent house sale with such meticulous efficiency.
I very much appreciated your thorough (two hours, plus!) presentation about the state of the real estate market and the Leaside market in particular. The combination of your detailed preparation and your lack of pressure were certainly key to my choice of you as listing agent.
Throughout our delightfully brief endeavor, I was most appreciative of your immediate attention to whatever needed to be done and your scrupulous commitment to times and timelines.
I enjoyed working and chatting with you and it is was somewhat of a disappointment to be saying good-bye to you so soon! I don’t know that my new house is my “pine box” and I will certainly think of you if ever again I’m in the real estate way.
Best regard –
Linda L.
Hamish and Martha M.
Dear Rosalin,
Just a note to thank you once again for your superb efforts in finding Hamish and I our new home and helping me sell my current home so quickly(… .with very little inconvenience for a house filled with three children, a nanny and a dog, I might add)
You have been helping me find real estate solutions for over 10 years and each transaction we have done together has yielded a great return on my investment and resulted in happy homes for my family. That said, hopefully we will be staying put for a while!
Thanks again for spending so much time with us. We truly enjoyed the experience and your company. Please stay in touch.
Best Regards
Toronto Real Estate Broker Jailed for Failing to Deposit Client’s Money
David Seto, the owner of ReMax Executive Realty was sentenced to one year in jail for failing to deposit client’s money into a trust account.
According to testimony heard in court, more than half a million dollars in home buyers’ and agents’ money was unaccounted for.
“These were very serious matters,” said Robert Lewin of the Ontario Court of Justice. “This was a large amount of money lost to people who were trying to close real estate transactions.”
Seto pleaded guilty to eight counts of failing to comply with the Real Estate and Business Brokers Act. His lawyer said that Mr. Seto was a victim of the economic downturn, when real estate sales started to fall in 2008. Instead, Mr. Seto put the money into the general accounts of Executive Realty. His company was also fined a total of $200,000.
The lawyer argued that his client didn’t profit from this. He didn’t run away with the money or put it in a foreign bank. “He and his wife are virtually wiped out”.
After receiving an anonymous complaint in January 2009 the Real Estate Council of Ontario (RECO), the regulatory body for realtors in the province, decided to investigate, according to an agreed statement of facts. RECO requires all deposit monies from house buyers who have purchased a home, to be placed in a trust account. Seto was also under emotional stress because his wife was suffering from cancer and he had to mortgage their home twice to keep the company going, he told the court.
Seto’s lawyer asked the court for leniency, but prosecutor Tim Snell, legal counsel for the Real Estate Council of Ontario, requested jail time as a “deterrent” to others who may contemplate doing the same thing.
Want to know what’s happening in the Toronto real estate market? Send us an email.
Toronto Real Estate Market Charts January 2010
The Toronto Real Estate Board has published the January 2010 housing charts for the Greater Toronto area resale market.
Sellers have the upper hand in this market because of low numbers of homes for sale.
Buyer demand, fueled by both low interest rates and a scarcity of homes, could continue to cause home prices to increase in Central and Downtown Toronto.
Central Toronto Has More Home Buyers Than Sellers
We are enjoying our mildest Winter in a long time, we have seriously low mortgage rates, a very healthy Sellers’ market, and yet……where have all the Sellers gone?
Traditionally, Sellers are not enthused about having their home for sale in the frigid winter winds. Why are they not delighted to take advantage of the lack of snow and take advantage of those more-than-eager Buyers right now?
More important than the weather to Buyers is the availability of super-low mortgage rates. This is why they are most eager to find their new home right now.
We are constantly being reminded that these low mortgage rates are unsustainable. So why wait until this happens? Those Sellers who decide to get ahead of this will reap the benefit. It’s an obvious case of “supply and demand”.
I’d be happy to give you an accurate opinion of what your home is worth.
Drop me an email at rsmithcarr@sympatico.ca or call me at 416-482-8330 ext 3519
How Home Buyers Can Get All the Home Information They Want and Not Be Hounded by Real Estate Agents
Like any consumer, I hate it when salespeople hound me.
At the same time, I’m also aware that real estate agents have a reputation for chasing clients. Nonetheless, there is a fine but legitimate line between hounding and going on a successful hunt.
Let me explain. Let’s say you’ve hired me to sell your home. Your circumstances are such that it must be sold within 45 days or you may find yourself in a very difficult position.
My job is to shift into high gear and find your buyer as soon as possible. This means:
- Following up with every agent who has either viewed or taken a potential buyer through your home
- Staying in touch will all potential buyers I’ve sourced myself
But here’s where the hunt can get somewhat hound-like. Because of your time-crunch situation, I can’t afford just to sit back and wait for buyers to contact me. So, I’ll call (and, sometimes, call and call), email, or even drop by to firm up a definitive “yes” or a “no”. After all, this is my job and what you are paying me to do.
Few sellers (or buyers, for that matter) would prefer I sit back and wait for the buyers to come to me. Most sellers under time-pressure expect an agent to be pro-active, even if it means coming dangerously close to hounding.
So, how do you as a buyer (or seller) get information from an agent while at the same time preventing the agent from becoming a nuisance?
As a consumer, here’s what I would do: Tell the agent from the get-go that you are just starting your search, and to please respect your wishes, especially those regarding further contact. You will find that most will.
However, if the agent disregards your request and steps over that fine line, I’d tell them you are going to report them to the Real Estate Council of Ontario (RECO), which is the real estate’s agents’ policing body.
And if that doesn’t work – you will send in the hounds!
Superb Leaside Neighbourhood Four Bedroom Home Now Available
Superb Leaside Neighbourhood
This detached home on a generous 33’ foot lot offers abundant space for a growing family. The well proportioned dining and living room with cozy fireplace allow for easy entertaining.
The galley kitchen opens into the family room with its view overlooking the private south rear garden .. delightful for a quiet BBQ.
The current owners enjoy the easy access to downtown, highly regarded schools and the much-enjoyed stores, boutiques and restaurants on Bayview and Mt Pleasant.
Leaside is one of the most popular neighbourhoods in Toronto and is in especially high demand with upper middle income families who value this neighbourhood as an ideal place to raise children.
Leaside’s Tudor-style houses were built largely in the 1930’s and 1940’s and most of the houses contain beautiful wood trim, hardwood floors, and a working fireplace. The typical Leaside house is situated on a generous size lot with a private drive and a garage.
There is a good mix of two-story detached homes, bungalows, and semi-detached houses.
Looking for your dream home? Click here to find all Leaside homes for sale.
This home has been sold.
Renovation Leads to Separation – Staying Together After All the Work is Done
If you’re thinking about moving ahead with a home remodelling project, the following are some factors to consider. This is tried and true advice gleaned from over 25 years of consulting with clients in Toronto on home buying, moving, selling and renovating. It will not only save you financially, but emotionally as well. Speaking of emotions . . .
Toronto Home Remodelling: Can Your Family Afford the Emotional Cost?
There is an old idiomatic expression in the real estate industry that goes, “Renovation leads to separation.” This is especially true if the family inhabits the home while the renovation is taking place. Noise, dust, cramped quarters and dealing with unreliable contractors take a huge toll on even the most stable relationship.
This is added stress on top of professional responsibilities, child rearing and other day-to-day pressures. This is why I have always found that the most important factor to consider when deciding whether or not to renovate is not the financial cost, but the emotional cost.
After all, what good is a newly renovated home when there is no family left intact to enjoy it?
Toronto Home Remodelling: When It Makes Sense to Move Forward
If your family is prepared to weather the emotional toll, following is when it makes sense to move forward with a home remodelling project.
You Love Your Home: This is probably the best reason. If you love the basic bones of your house, its location, and the feel of the neighbourhood, then remodelling makes sense – if it’s within reason (which we’ll discuss in just a bit).
The Costs are in Line with the Neighbourhood: You can easily spend too much on a home renovation project. Following are two questions to ask that will help you keep costs in line with your desires.
The first question you need to ask – and answer – before proceeding is, “Does it make sense to spend this amount of money, on this home, in this area?” You want to be able to answer “yes” emphatically. The second question is, “When all the work is done, will my home be the most expensive home on the street?” The answer to this question should be “no.”
The reason is, any improvements you make should be those that a future buyer will be willing to pay for.
Remember, potential homebuyers pay relative to what other homes in that vicinity have sold for. So no matter how much that slate tile in the master bath costs or how great it looks, if it puts your home in the “most expensive” category, it’s unlikely you’ll recoup what you spent.
Toronto Home Remodelling: Make Sure Moving Is Not a Better Option
As renovating can get expensive – quickly - sometimes it makes sense to move. To illustrate, consider this: let’s say you own a beautiful two-bedroom, semi-detached home on a lovely, quiet street. You need a third bedroom and would like to have a family room on the ground floor. You’d also like a pool.
Do you think it would be a good idea to have all of these changes and additions done to your existing home? My experienced opinion is, “Probably not.” Why?
These are significant changes. You’re not remodelling, you’re rebuilding. In real estate speak, changes like this make you a classic “move-up buyer”; one who wants a detached home with a private driveway and a larger lot size. It would be better to buy a home with these features than remodel your existing one.
Toronto Home Remodelling: Get First-hand Advice before Making a Final Decision
No matter what your decision, get some helpful first-hand advice before making it. Seek out the following three people:
(i) an experienced, local real estate agent. They’ll be able to advise you on tangibles like resale value;
(ii) someone who has gone through a similar home remodelling project. They’ll be able to tell you what to expect, e.g., cost, how long it’s going to take, recommend contractors, etc.; and
(iii) a contractor who can provide you total costs for your Toronto home remodelling project.
Want to buy a home in a prime Toronto neighbourhood? Visit PrimeTorontoNeighbourhoods.com to find your dream home.
Toronto Home Bidding Wars Are Back – Here's How to Make Sure You Win
I stopped to fill up my car at a gas station recently. While I waited for the salesperson to process my bill, I asked her how cigarette sales were going. I’m not a smoker but was curious to see how the new law banning the display of cigarettes in Ontario had affected sales. Without a moment’s hesitation she said, “Actually, sales have doubled.”
This caught me by surprise and I inquired further, asking her if she knew why this was so. She replied, “It seems that people want what they cannot have.”
Her answer reminded me of a similar situation that affects home buyers in some high-demand areas in Toronto. Often, I encounter prospective buyers who decide not to proceed with a purchase simply because no one else has made an offer.
What many of these future homeowners are in essence saying is, “I will buy that house when I know somebody else wants to buy it too.” Of course, this is not what they say out loud, but it is exactly what their actions say.
How to Win the New and Revived Home Bidding Wars in Toronto
If you find yourself in a home bidding war in Toronto, don’t panic. You can win at this game. Following are some tips for doing so.
Offer High:
Make the highest offer you can afford. This is no time to try and low-ball.
Get Your Documentation in Order: This will help to ensure a speedy sale, which can be the difference between you and another home bidder.
Do not include unnecessary conditions:
Make it as easy as possible for the seller to say yes. Note: Don’t waive a home inspection, which will be discussed in just a bit. You want to make your offer attractive, but not at the expense of doing your due diligence as a home buyer.
If at all possible have the home inspection done before you make an offer. The only downside is the small cost of your inspection in the event your offer is not accepted.
The bottom line is, if the home you are considering buying meets most of your criteria regarding location, price and amenities in Toronto, then don’t wait for another buyer to outbid you. What this means is that if the condition of the home is unsatisfactory, you can still walk away and get your deposit money back.
Success in buying a great home in prime Toronto neighbourhoods comes to those who act independently — and who brave home bidding wars secure in the knowledge that they haven’t followed the crowd.
Warning! Why Building That Large Home May Be Dangerous to Your Wallet
While the title of this article may sound a bit dramatic, it is intended to catch your attention to discuss why building a large house may not be the best financial move you can make.
Weighing Today’s Large Home Needs in Prime Toronto Neighbourhoods against Tomorrow’s Finances
Chances are, you’re planning to have that four or five-bedroom home built because your family is growing. This is perfectly logical.
HOWEVER, as anyone who has children knows, they grow up and move out quicker than you ever imagine. Then, what you’re left with is a house that is too big for just the two of you.
Why Large Homes in Prime Toronto Neighbourhoods May Be Harder to Sell Than You Think
“So,” you may be thinking, “I’ll just downsize. I’ll sell my house and move to a smaller home or perhaps a condominium.” But, this may not work out the way you think. There are several factors at play that will conspire to drag down the value of large homes in the future, making them harder to sell. Specifically:
Retiring Baby Boomers: Since the late seventies, baby boomers have been the driving force in the housing market. And, with millions of them in the U.S. and Canada set to retire, the housing market is set to change dramatically. This group will be downsizing to smaller dwellings – not larger ones.
The New Homebuyers: Young adults will make up the bulk of new demand for housing. And with the shift towards a greener economy and environment, efficiency, lower maintenance and lower taxes are their priorities – not massive amounts of space.
Immigration: Immigration to Canada has slowed considerably, especially to cities like Vancouver. This is important to know because the first wave of immigrants tends not to be homebuyers. They struggle and sacrifice in order to give their children a better life. And many of them succeed, producing a second generation who has the buying power to afford larger, more expensive homes in prime Toronto neighbourhoods.
If the predictions for lower housing demand by population experts such as Boom, Bust and Echo author David Foot unfold, you may find yourself owning the home equivalent of a gas-guzzling SUV.
On the other hand, if your financial situation is such that money is no object, then by all means go ahead and build your large home in a prime Toronto neighbourhood – and live happily ever after in your Casa Loma!
Looking for no-strings-attached advice about buying or selling in central Toronto? Write to me at rsmithcarr@sympatico.ca or call me at 416-482-8360 ext. 3519
Should You Pay More Than the Asking Price For a Home?
In many Central Toronto neighbourhoods – even in this market – we continue to see homes sell at or above the asking price. “But,” you may be thinking, “Does it make sense to pay more than the asking price?”
The answer is an emphatic yes because like a Chanel suit, some things will always be in fashion – and hold their value. A good neighbourhood is one of those things. Following are three reasons to pay at or above the asking price for a home in central Toronto, with full knowledge that you’ve made a sound financial decision.
Central Toronto Neighbourhoods: The Best Ones Cost
No matter what the real estate market at large is doing, the best neighbourhoods in central Toronto tend to hold their value. This can be attributed to several factors. Following are two of the most important.
The Best Schools: One of the determining factors of home prices is school districts. Homeowners in the best neighbourhoods tend to pay more in property taxes, which in part fund school districts, to ensure that their schools are the best.
When homebuyers — in particular those with children — are looking to buy, they will pay top dollar to ensure that their children have access to the best education.
Active Homeowners: The best central Toronto neighbourhoods also tend to have an active populace who pay attention to variables like crime statistics, property upkeep and pollution (e.g., clean, safe streets and parks). This is why these neighbourhoods tend to stay pristine – and desired places to live.
Central Toronto Neighbourhoods: Low Inventory, Bidding Wars & Pricing to Sell
Mainly due to the above reasons, housing inventory in the best Toronto neighbourhoods tends to run low. It’s a simple case of demand outpacing supply. Therefore, when a home that is appropriately priced comes on the market in one of these neighbourhoods, they more often than not sell quickly. Bidding wars are not uncommon, which can quickly drive the cost past the asking price.
Furthermore, homeowners in prime Toronto neighbourhoods know the value of their residences – and what serious prospective buyers are willing to pay. Hence, they price them appropriately and stage them to sell.
Central Toronto Neighbourhoods: Taking the Long View
If you’ve heard it once, you’ve heard it a thousand times, i.e., real estate is all about location, location, location. When buying a home in Toronto (or any place else), you should always buy with this long-term view in mind. You can change the cosmetics of a house, but you can’t change its location, its school district, or the safety and cleanliness of its streets.
If you have a good idea of the type of house you want and the Toronto neighbourhood you want to live in, you may have no option but to get in line with others seeking the same – even engaging in a few bidding wars and possibly paying more than the asking price.
When you consider however that your home is probably the largest investment you will ever make, when you buy in a prime central Toronto neighbourhood that retains its value, as Martha Stewart would say, “That is a good thing.”
Want to buy a home in a prime Toronto neighbourhood? Visit PrimeTorontoNeighbourhoods.com to find your dream home.
You can also quickly find out what your current home is worth, and get valuable information on how to attract the highest number of buyers.
Are Toronto Housing Prices Up or Down?
There is a lot of conflicting information floating around, it’s hard to know for sure what’s going on with the real estate market these days.
One recent report declared that the price of an average house was at an all-time high, while another warned that prices have been in steady decline over the past five months.
So where does the Canadian real estate market stand in all this? Or is that even the right question to ask?
Common wisdom reminds us that when we ask the wrong question, we get the wrong answer
In reality, there is no such thing as a “Canadian” or an “American” real estate market. Nobody buys homes “nationally”. Rather, we buy homes in specific cities, towns and neighbourhoods. And whether prices in general are going or down, the bottom line for most buyers is: What’s happening with prices in the area I’m interested in?
In some areas of the U.S., prices have dropped as much of 50 per cent following the financial crisis. However, there many large metropolitan areas, such as San Francisco, Las Vegas and Phoenix, where bidding wars are back and buyers are paying more than the asking price.
In Canada, MLS figures showed the average national home price for May set a record high of $319,757, up a substantial 16.4% from January.
Yet Phil Soper, chief executive of Royal Le-Page Real Estate Services Ltd., was philosophical about the new data. “You can’t argue with the accuracy of the number,” he said, “but you can argue that the number misrepresents what’s happening in the marketplace.”
According to Soper, home prices have remained pretty much the same since January, but when comparing sales on a monthly basis, seasonal factors affected the results. For instance, many winter-time home sales were distressed sales, which artificially lowered the average house price.
All in all, compared to this time last year, the CREA data shows average home prices as flat.
However, home prices in central Toronto neighbourhoods such as Leaside and Davisville Village are on the rise again. If history repeats itself, we can expect home prices there to continue to rise.
Stay tuned for more updates on home values in these and other desirable neighbourhoods!
Want to buy a home in a prime Toronto neighbourhood? Visit PrimeTorontoNeighbourhoods.com to find your dream home.
Canadian Home Values Better Than U.S.
A recent real estate survey reveals that home values in Canada are, on average, higher than in the United States. Cities such as Toronto and Winnipeg, though similar in economy and size to Chicago and Minneapolis/St. Paul, boast much stronger and more stable housing markets.
The results are almost the same for Halifax, though its prices are slightly lower than in its counterpart, Boston.
As of the end of March, prices were significantly higher north of the 49th parallel. For instance, in Toronto, the average housing price fell only four percent to $394,099, while in Chicago, the average price plummeted 34 per cent to US$249,901.
Likewise, Toronto homes were on the market for only about three weeks before being sold, substantially shorter than the Chicago homes’ 168-day (or 24-week) turnover.
In Winnipeg, the average selling price rose three per cent to $209,628, while in Minneapolis the average price fell 24 per cent to US$148,317. In St. Paul, the selling price dropped even further (36 per cent), to US$105,858.
Meanwhile, Halifax continues to buck recent real estate trends, posting a notable seven per cent increase in the average selling price (to $282,499), compared to Boston, which posted a 28 per cent plunge (to US$394,550). However, homes in both cities remained on the market for almost the same number of days.
In the nations’ capitals, prices inched upward one percent in Ottawa, while prices in Washington fell three per cent. It also took more than twice as long to sell a home in Washington.
But things are different for Calgary and its “twin”, Houston.
In Calgary, where the prices are significantly higher and selling times much shorter than in Houston, the Stampede city still posted a hefty 11 per cent price drop compared to its American counterpart. Average home prices in Calgary were $380,737 and US$200,233 in Houston.
Toxic Chinese Drywall in Your Home Can Make You Sick
The use of toxic Chinese drywall in newly-built or renovated homes is turning into the largest environmental crisis to hit the North American real estate industry in recent history.
When exposed to humid conditions, the defective drywall gives off toxic gases like hydrogen sulphide, sulphur dioxide and others. Not only do these gases create a noxious odour (comparable to a rotten egg smell), they also cause health problems such as shortness of breath, eye irritation, fatigue, dizziness, insomnia, sore throat, bloody nose, and headaches.
Along with unpleasant smells, other evidence of the presence of the toxic Chinese drywall in new or renovated homes includes blackened and burnt wiring behind wall plugs and switch plates, and corroded evaporator coils on air conditioning units.
Unfortunately, homes containing defective Chinese drywall cannot be repaired. The only course of action is for them to be completely gutted and rebuilt. Experts in the field estimate that it can take as few as three sheets of the toxic drywall to contaminate an entire home to the point of making it uninhabitable.
Between 2001 and 2008, hundreds of millions of sheets of the toxic drywall were imported to the U.S. During the same time period, about a million square metres were shipped to Canada.
America’s Watchdog, a national advocacy group for consumer protection, is taking an active role in tracking down those responsible for the defective drywall. The president of America’s Watchdog, Thomas Martin, says the crisis is “the worst case of sick houses in U.S. history.”
In April of this year, the Drywall Safety Act was introduced in the United States House of Representatives. If approved, the Act would prompt a recall of all Chinese drywall imported into the U.S. between 2004 and 2007.
Meanwhile, the full extent of Chinese drywall installation in Canadian homes is still under investigation. The Environmental Protection Agency has a 9 page report on Chinese Drywall.
If you suspect your home may contain the defective drywall, contact an environmental engineer or a qualified home inspector.
Looking for no-strings-attached advice about buying or selling in central Toronto? Write to me at rsmithcarr@sympatico.ca or call me at 416-482-8360 ext. 3519
Toronto Real Estate Market Close to Reaching Boiling Point Again
As springtime sales experience an unexpected upswing, parts of the Toronto market go from famine to frenzy. Even bidding wars have returned, to the joy of sellers and annoyance of buyers.
In the first two weeks of May, housing sales in the Greater Toronto Area (GTA) were in positive territory for the first time since the market’s tailspin last fall, chalking up a healthy 3 per cent increase over the same period last year.
Housing analyst and economist, Will Dunning, explains that the current mini-boom is what he calls a return to reality of sorts. “Buyers have returned to the market with the realization that apart from manufacturing and construction, the GTA economy is holding up well.”
Indeed, the Toronto real estate market has been more than encouraging of late. A lack of homes on the market and record-low mortgage rates have lured buyers back into the game.
And game they are. In May 2009 in Davisville Village and Leaside, 41 per cent of homes in the 500,000 to 950,000 range sold for the full asking price or above, while a property on the Danforth listed for $549,000 sold for $715,000, or 130 per cent of the asking price.
However, despite these promising signs, some analysts are already warning the mini-boom won’t last and that average existing home prices will drop 5 per cent by the end of the year. And while consumer confidence is buoyed by the more positive economic news, the seas ahead could be choppy.
Once again, the word here is caution. Dunning tempers his enthusiasm over the mini-boom by looking ahead at the long-term implications. “Improved affordability generally results in a short-lived wave of buying. So we may see several good months, but there could be another slowing in the second half of the year. I remain skeptical.”
High demand for housing has already caused a rise in mortgage rates. We are well advised not to experience a second round of Irrational Exuberance, as the title of Robert Shiller’s book so aptly describes it.
Unsure as to what to do in this real estate market? Simply send me an email, or call me: Rosalin Smith-Carr, at my direct line (416) 482-8330 ext. 3519
Survey: Royal LePage Real Estate in the Top Ten Real Estate Companies in North America
Real Trends 500 (or RT500) is the real estate version of Fortune 500. It appears annually and measures the performance of the top 500 most successful residential real estate brokerages in the U.S.
In a recent comparison, Royal LePage Real Estate Services Ltd., including Johnston & Daniel Division, was measured against similarly-sized American companies on the 2009 RT500 list.
In comparable dollar-volume closed sales, Royal Lepage ranked 9th out of 500 firms (or in the top 2 percent), and 22nd overall in closed transaction sides, known as “ends”. Such impressive standings testify to Royal Lepage’s ongoing strength in the real estate market.
In Canada, Royal Lepage remains the #1 brokerage firm in dollar volume, thanks in large part to the success of its Johnston & Daniel Division. Royal Lepage is both the largest and the oldest real estate company in the country, launched in 1913 by Albert Lepage and today boasting more than 14,000 agents.
Over the years, we’ve learned a lot about real estate. Since the mid-1990’s, in response to expanding market conditions, Royal Lepage tripled the size of its sales team and almost doubled its market share.
Today, Royal Lepage offers its sales and services in over 600 cities and towns all across Canada, so wherever you want to live, you’ll find a Royal LePage agent ready to serve you. In addition, we are always updating, streamlining and adding to our services to help our clients realize their dreams faster and easier.
In our steady rise to the top, we have never forgotten our roots: Royal Lepage remains proudly and steadfastly Canadian. We also remain dedicated to helping our clients through the real estate process, from start to finish.
Our commitment to innovation and customer service is as strong as ever and has provided the solid and enduring cornerstone to our success.
Looking for no-strings-attached advice about buying or selling in central Toronto? Write to me at rsmithcarr@sympatico.ca or call me at 416-482-8360 ext. 3519