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
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 ...
JULY/AUGUST 2014 - MARKET REPORT
August 20, 2014
SALES COMMENTARY: July sale numbers on the Toronto Real Estate Board confirmed what we have been saying since April, that 2014 will probably be a record sales year. That is not as big an accomplishment as many would have you believe. The previous record for sales was in 2007. The market is simply waking up to the fact that there will be no market correction for the foreseeable future. For July, overall sales were up by 10% over last year and were the second best July numbers on record. Condo sales were even better. They were up by almost 14%. The downtown condo market lead the pact with sales up by 19% and the Etobioke condo market was just behind at 18%. While new condo listings downtown were up by 13%, the ratio of sales-to-new-listings for July increased by 2% to 46% in 2014 from 2013 – a number that ...
Market Report June/July 2014
June 18, 2014
SALES COMMENTARY May was the break through month for sales on the Toronto Real Estate Board. Sales were up by 11% over May of 2013. In fact May sales were the largest on record for the month. The overall condo market recorded a sales increase of 7% and the downtown condo market was up by 8%. A lack of istings continues to be a drag on the overall market. Active listings are 9% lower than May of last year, and new listings for the month were 1% lower. A test of market balance is the ratio of sales for the month divided by new listings for the month. The number for May was 59% which indicates a sellers’ market. A normal market is in the 25-40% range. The downtown condo market, which everyone seems overly concerned with, had an increase of 14% in new listings for the month. The result ...
Real Estate Week in 60 Seconds-May 21
May 21, 2014
On this past Friday the Toronto Real Estate Board released sales for the first two weeks of May. And overall sales for that period were up 19.6% from the first two weeks of May of last year. Condo sales were ahead by 13.5% and downtown condo sales were even up by 12.2%. What we have been predicting for so long it seems has finally come true. There has been a big jump in the real estate market over last year. You remember the condo I talked about last week? 87 Showings, 7 Offers? Well, it too sold over the weekend, and the seller even got his full list price. Speaking of prices, average detached houses in Toronto are up 13% over last year this time, that’s $967,000 dollars. The average condo price in Toronto was also up by 5% from a year ago but only to $398,000 dollars. At some ...
March/April Market Report
March 26, 2014Canadian Condo Market Canadian Real Estate Toronto Condos Toronto Condos Update Toronto Real Estate Market Forecast
SALES COMMENTARY: February sales results from the Toronto Real Estate Board were almost identical to January. And for the first two weeks of March, results are eerily similar. It seems like we are just treading water because of the harsh weather. Overall sales in February were up by 2% over February of 2013. New listings were off by 1% from February of last year and active listings are now 12% lower than this time a year ago. For the first two weeks of March, sales are unchanged from the same time period last year and new listings are off by 10%. Bad weather and a lack of listings (not a lack of buyer interest) have certainly hampered the market. Surprisingly, the condo market is outperforming the overall market. In February sales were 10% higher than a year ago. For downtown condos, the sales increase was even greater – up by ...
THE SECOND OR CITY LAND TRANSFER TAX IMPACTING SELLERS NOT BUYERS
October 12, 2013
There is no doubt that the real estate market within Toronto (416) has been slowed – sales noticeably lower than those in the 905 area. Most experts think the reason is that Buyers are opting to purchase in the suburbs to avoid paying the second land transfer tax. NOT SO! The lack of sales is being caused by Sellers! Many Sellers are not putting their property up for sale but instead are renovating rather than moving. Do the math: buying a new property for $800,000 will cost over $24,000 in Double Land Transfer tax. Add on legal fees, moving costs, real estate commissions, and utility changes and the final bill will be over $50,000. Imagine if one did not move but spent the same money on renovations. And that is what is happening more and more. When a freehold property (for those outside of Toronto it means any residential property ...
MONTHLY REAL ESTATE SALES NUMBERS ARE IRRELEVANT
April 9, 2013
Why is the media, and hence the public and eventually the real estate industry so focused on monthly sale numbers? We know that the media needs regular news and reports to sell advertising. But real estate sales are not neatly packaged in one month intervals. Weather, holidays, and a variety of personal factors can move sales from one month to another. Real Estate sales are rarely time sensitive. We need to look at longer time horizons – say a year or two. The second point to make is that 80% of residential sales take place for personal or family reasons, and not economic reasons. Experts sitting in some small office think that all decisions are based on income. When an Executor phones to tell me that Grandma’s dead; they never ask me about the market, should they hold off selling for a better price, or should they rent it out ...
HOW TO SPOT A REAL ESTATE MARKET TURNAROUND IN 2013
January 29, 2013
Real estate sales are very seasonal – we have the spring and fall markets, winter can be slow and then there are the summer doldrums. In fact sales from the slowest to highest month can vary by 250% in a single year. That’s why market watchers always compare sales in any one month to the sales of the same month a year ago. But you need to analyze more than just that. In reviewing the 2012 condo market, sales were strong for the first four months, stalled, and then recorded month over month sales declines of 20-30% every month over the last half of the year as compared to 2011. For the first four months of 2013, condo sales will still be lower than for the same month in 2012. Most experts will come to the conclusion that the market is still going down! But the true test is to ...
JANUARY 2013 - MARKET FORECAST
January 8, 2013
SALES COMMENTARY: 2012 IN REVIEW: Most forecasters avoid reviewing their calls from the previous year. Not us! We called for 90,000 resales on the Toronto Real Estate Board, and we will end the year with 86,000. We forecast condo sales to be 10% higher when in actual fact they were off by 16%; with the biggest impact occurring over the latter half of the year. We expected condo prices to be flat in the $500-550/sqft range. Over the year, prices rose slightly and then declined to end the year flat to 3% lower. In the New Home or Pre- Construction Market, prices at $700-800/sqft were unsustainable as we predicted. This Market is now in the $550-650 range, depending on location. We forecast rental rates to increase by $75 across the board and that the basic one bedroom without parking would increase to $1600 – it is now closer to $1700 ...