Starting July 1st, Real estate agents are required to keep all offers on properties they list for sale for a period of one year, that’s Bill 55. Next the Ontario Real Estate Association decided to introduce the form 801 to make things easier for all agents. The form captures all the information from the offer, meaning less paperwork to store. This form is not mandatory, just a way to reduce paper. Now, some enterprising listing agents are asking the cooperating agent to supply the form with their offer. In essence they are trying to pass off their duties under this new legislation. They try to tell agents it is mandatory when this form is not. Why would a cooperating agent and a buyer put down all the information from their offer again? What happens if they make a mistake? Simply put, it is up to the Listing Agent to keep ...
What is Form 801?
July 23, 2015
Rental Market Report July/August 2015
July 22, 2015
This chart plots the average rental price by unit type with the previous year's second quarter for comparison What's the rental market in Toronto like this summer? We are now in the peak season for rentals. The studio unit now averages $1400 per month and around University of Toronto, the number approaches $1500. The biggest market is for one bedroom units. The entry point remains at $1600 without parking. The most popular unit is the one plus den with parking at $1900 per month. More and more renters are trying to convert the den into a second bedroom to reduce costs. The two bedroom market continues to be most in demand. The entry level without parking is now $2300 per month. The most popular unit, with parking but no den, averages almost $2500. Adding a den will push the average price to almost $2800 per month. The three bedroom market ...
Market Report July-August 2015
July 20, 2015
Toronto MLS Sales:Monthly with 3 Previous Years for Comparison This chart plots monthly MLS sales for the current year and the previous three years. The recurring seasonal trend can be examined along with comparisons to previous years for each month. Sales Summary We usually refrain from talking about all-time records but June was a record on the Toronto Real Estate Board as it produced almost 12,000 sales. This was 18% higher than June of last year. More importantly to us, June sales were slightly higher than May which is usually the peak sales month of the year. We said that if June was the peak month, then this would be a record year. Another way to look at the numbers is that year-to-date sales at the mid-year point usually represent between 52-55% of the year’s sales. Based on a year to date sales of 54,453, we are projecting a final ...
Will the Pan Am Village Impact the Condo Market?
July 16, 2015
Today everyone is talking about the Pan Am Games, but I want to talk about the Pan Am Village and how these condos will impact the overall condo market. People remember the Vancouver the Olympics. After the games, a couple thousand empty units where left to be sold. The developers bailed and the city of Vancouver was forced to sell off these units as a lost. Is this the case in Toronto? No. In Toronto there are only 1500 units in 6 buildings that were built. Of these 6 buildings; 1 is dedicated to George Brown students. Two buildings are dedicated to low income housing and the Fourth goes to the YMCA as a hostel. Hence there are only two buildings, The Canary Park Condos, which will even enter the resale condo market. That’s just 437 units with an average purchase price of $500 to $600 per square foot. Hence ...
Will the Toronto Condo Market Slow Down?
July 9, 2015
More and more people keep asking me, “When will the Toronto real estate market slow down? Will we have a price correction?” If you are Garth Turner, a correction has been about to happen for the last few years. If you bet on that horse, you would still be renting. My take is very simple, we have over 100,000 people moving to the GTA each year. Everyone needs a roof over their head. The housing being built, primarily condos, is for these people. That’s not speculation, but keeping up with demand. When Toronto is not a place that people want to move to, then we will have a problem. When will that happen? Just watch the Ontario and Federal Governments, do they want job growth, or do they want to raise taxes to cover their mistakes. It may not happen this year, but when it comes, real estate markets will slow ...
June 25, 2015
As of July 1st, electronic signatures are now legal on all agreements of purchase and sale and agreements to lease. There are already free apps for signing that lets anyone sign on the bottom line. So what’s the problem? Anyone can sign anywhere, and that is an issue that the Ontario Government has been wrestling with for the past 10 years. The solution is cloud based software. A secure site limits access. It identifies the time in which the signature is affixed. That’s critical on irrevocable dates on all agreements and you’re IP address is also tracked for added security. Plus clients don’t have to download an app they use only once. Professional agents dealing in half a million deals or more will go for the cloud based route. Part time agents will use the free app. While electronic signatures are convenient for everyone, people still need to protect themselves.
June-July 2015 Market Report
June 24, 2015
Number of Toronto's New Listings by Month This chart plots monthly MLS new listings for the current year and the previous three years. The recurring seasonal trend can be examined along with comparison to previous years for each month. Sales Summary The real estate market continued its unrelenting push to new price and sales levels. For May, the Toronto Real Estate Board reported sales of 11,700 units – up 6.3% over May of 2014. At the same time, ‘active listings’ declined by 10% over the same time last year. The end result is a continuous pressure on prices; and nowhere more evident than in the detached market house market in Toronto where sales actually declined 6% for the month while average house prices climbed 18% over last year to $1.1 million. While this new average price is attention grabbing, it is irrelevant in a market such as Toronto. Most major ...
Bill 55 and What it Means for Buyers
June 18, 2015
Bill 55 is coming to Ontario on July 1st, 2015. Bill 55 states that when a REALTOR® is representing a seller, they cannot indicate that they have received an offer unless they have actually received a valid, signed, written offer. What does that mean for Consumers? The Bill attempts to eliminate phantom offers. Phantom offers occur when the Listing Agent tells the Buyer’s Agent that they are up against one or several offers. The buyer, through his agent, then decides to bid more to get the property. When it’s all done you’re left wondering if there was really more than your offer on the table. How do you find out? You contact RECO, that’s the Real Estate Council of Ontario and they will tell you how many offers and from which Brokerages. If you find out you’ve been lied to, you can then sue the listing agent for the ...
The Value in Stackable Condo Townhomes
June 17, 2015
The pricing on the freehold housing market in Toronto continues to increase. Stand-alone homes in the city went for an average of $1,040,018 in February 2015, up 8.9 per cent from the same month a year earlier. We also see the construction of new single family detached homes continue to decrease. This year there will be 7,700 starts and it is predicted only 7000 in 2016 in the GTA. A decade ago we saw over 20,000 single family detached housing starts. This is due to the increasing cost for land, the lack of serviced lots, and other land policies like the "Green Belt" In contrast the average price of a condo is currently $448,760. The issue with condos for families is that they are often not large enough. There are a number of reasons for this: The typical high-rise takes 5 years to build from the start of sales ...
Toronto's Million Dollar Houses
June 8, 2015
Toronto's Million Dollar Homes (And What it Means) It's official, the average price of a detached house in the City of Toronto is now over One million dollars! Is this big news? For people who think we have a real estate bubble it is. However, for those who are in the real estate market every day, it's no big deal. The reality is there is a limited supply of detached housing in Toronto. The supply is shrinking everyday and everyone wants to live downtown. While 2015 will be a record year for sales in the GTA, house sales in Toronto will actually be lower than in the past. This is just because there is very little supply. Most cities around the world don't have detached housing downtown. The best you can find is row housing. In Manhattan, you can expect to pay over 5 million dollars for a brownstone. In ...