Everyone knows that our real estate market has changed, except for Buyers and Sellers. Sellers think the prices of March and April are still happening today, wrong. Buyers think that prices are still going to drop by another $100,000, wrong again! So, what happens when Buyers and Sellers can't agree on a price? No sales. In fact, in June Sales have dropped by over 50%. In most markets, prices drop until demand and supply, (Buyers and Sellers) come into line. That is what economists forecast in every market, but not real estate. Sellers are speaking by not lowering their price, but canceling their listing and saying that they will come back next year. Buyers can wait and hope for further price drops, or they have an opportunity without multiple offers, to negotiate hard for their preferred property, today. So, even today some properties will sit on the market for months ...
Toronto's Changing Real Estate Market
July 6, 2017
The Real Story Behind Rent Controls in Ontario
May 18, 2017
The Ontario Government has introduced new rent controls effective April 20th, expanding rent controls to include units built after 1991. So why the rush? A CBC reporter published a story on how her landlord had doubled her rent overnight from $1,600 to $3,200 per month and she was now forced to live on a friend's living room couch. Now I know you can rent a studio for just $1,600, so I contacted her to ask why the landlord would do that to her. There are only two reasons, 1. The Tenant isn't paying rent, or 2. The Landlord wants to sell the unit vacant. She said that she always paid her rent, but her landlord still wanted to sell. If you know anything about tenants, when a landlord wants to sell, they do two things to thwart the sale. They refuse showings on a regular basis and they keep the ...
The Perfect Market for that Less than Perfect Condo
January 23, 2017
Never have I seen a market with such little market inventory - properties for sale. Many owners, myself included, have said 'If you don't need to sell, sit on it", the market is still rising. But, this is also the best time to unload what I call, 'less desirable properties' and put them up for sale. In a normal market, these properties are difficult to sell and they sell at a discount. However, in today's market, they will sell at full value and quickly. So what do I mean by less desirable properties? Sell that condo on the second floor overlooking the garbage bins. Sell that condo on the fifth floor that sits beside the Gardiner with windows that are never allowed to open, and sell that condo gets no sunlight. You know what I'm talking about. Never has there been a better time for sellers to unload a property ...
The Competition Bureau Ruling
May 6, 2016
Many of you already know that the Courts found in favour of the Competition Bureau in a limited fashion against TREB. What does the Competition Bureau ruling mean for the public and for Realtors? The simple answer is not much! Let me explain. The Competition Bureau wants TREB to provide sold information to the public through VOWs (virtual office websites). They already exist without sold information and many agents have them. Currently ‘solds’ are reported when a deal goes firm. With the Competition Bureau Order, you will probably find that ‘solds’ will now be reported on the closing date and not when the deal goes firm. So what does sold information do for a Buyer? Nothing. They can only buy what is for sale. And Buyers have had access to these listings for sale for years. So these Buyers will continue to need Realtors to find the right property and to ...
Average Price: The Worst Statistic in Real Estate
April 5, 2016
The worst statistic most often quoted in Real Estate is the average sale price. Did you know that the average sale price of an area can change when there are no actual changes in prices of any real estate? This is because the mix of sales always changes over time. For Example, one month you can have one $1,000,000 property sale and nine $100,000 sales, the average price works out to be $190,000. Next month, 10 more sales of similar $100,000 properties will give you an average price of $100,000. The newspapers will report a 47% drop in average prices. If you look at the Toronto Real Estate Board, the average sale price in May is always higher than the average sale price in October, every year! Do you think sale prices fall every year throughout the year? No, it’s just the mix of sales that changes. There are fewer ...
Market Report October-November 2015
October 21, 2015
Sales Summary While many people focused on September sale results as being a record for the month, the reality is that the market is instead plateauing. Sales on TREB for September were 8200 units which were up by 2.5% over last year. In August we were 5.7% higher than the same month a year ago and if you go back to the Spring Market, we were running 10% higher each month. Still if we match 2014 sale numbers over the last three months we will hit the record and magical number of a 100,000 units sold on TREB for a single year. The key will be October sale numbers which are always higher than September. For the first 14 days of October sales were ahead by 4% over the same period in 2014. A positive sign. Looking at the Downtown Condo Market, sales were down by 1% from September of ...
Market Report October/November 2014
October 27, 2014
SALES COMMENTARY: The market that just keeps chugging along continued its upward momentum in September and into the first two weeks of October. Sales continue to run ahead of last year – in September by 10% and for the first two weeks of October by 22% over last year. Now before anyone starts to call this market a housing boom/bubble let’s keep a couple of points in mind. The market last fall was weak. We are now getting more new listings (up 11% in October) and people are now thinking that 2014 may be the biggest sales year ever. The previous high was in 2007, seven years ago (when we had a million less people in the GTA), so we would hardly consider the market over extended (although bubble forecasters – wrong since 2004, think otherwise). Name me one other industry whose peak sales year was in 2007 – not ...
How to Track the Toronto Condo Market
October 14, 2014Canadian Condo Market Toronto Condos Update Toronto Condos Tips for Real Estate Agents real estate prices Videos 2014
Welcome to inside the real estate market. In the last two week we talked about how you can track and forecast the Toronto Condo Market. We said all you needed to do is look at three statistics; The level of immigration into the GTA The number of Condo Completions each year and Mortgage Arrears. Today I want to talk about Mortgage Arrears. So why is this important to condo prices. Real Estate prices tend to be sticky. If people don't get their price, they don't lower their asking price; they just take the property off the market. So when do property prices fall? Only when the seller has to sell at any price and that only happens when the owner is in arrears in their mortgage payments. In the US, in 2008, mortgage arrears topped 7%. In comparison in Ontario today mortgage arrears are only 0.28%. Do you know what ...
How To Track the Toronto Condo Market
October 7, 2014Canadian Condo Market Toronto Real Estate Market Forecast Toronto Condos Tips for Real Estate Agents Videos
Last week we talked about how you can track and forecast the condo market. We said all you need to do is look at three statistics. The level of immigration in the GTA The annual level of new condo completions The amount of mortgages in arrears Today I want to talk about the second statistic, Condo Completions. In the pre-construction market, there are all sorts of stats. From new condo sales to units under construction, to unsold units and more. The problem with all these numbers is there is no third party verification and no agreed upon definitions. Anyone can report pre-construction sales, and what does under construction mean? It could mean a hording around a building site or a building thirty four stories in the air. The only real number is condo completions, that is, when a condo units is registered and enters the housing pool. The fact is ...
September-October Market Report
September 23, 2014
Sales Summary August sale numbers continued the trend which began in May of this year when the spring market finally kicked into gear. Sales were 2.8% higher than for August of 2013. All condos were up by 4.8% and downtown condos were ahead by 3.9%. At the same time both total active and new listings declined for the month by 5% and 3% respectively. Sales results for the first two weeks of September showed that sales were 6.6% higher than for the same period of 2013. Continuing this sales pattern will produce year-end sales of 93,000 units on TREB. This would equal the all-time record set in 2007. As we recall, that is what we predicted in January of this year. Some experts think that these sale numbers suggest an overheating of the real estate market. Our view is that the population in the GTA is 900,000 greater than in ...