GTA REALTORS® REPORT JANUARY RESALE HOUSING MARKET FIGURES
TORONTO
-- Greater Toronto REALTORS® reported 4,986 transactions
through the Multiple Listing Service (MLS®) in January 2010. This result represented a large
increase over the 2,670 sales in January 2009 when the home sales were in a recessionary
trough. Last month’s sales were slightly higher than the January average in the five years
preceding 2009.
“The GTA housing market has rebounded well from the lows in sales experienced at the
beginning of 2009. Sales climbed back to healthy levels across the GTA because the cost of
home ownership remained affordable in the Toronto area,” said TREB President Tom Lebour.
“Increasingly confident consumers moved to take advantage of affordable home ownership.”
The average home selling price in January 2010 climbed 19 per cent to $409,058, compared to
343,632 in the same month last year.
“Expect strong annual growth rates for existing home sales and average price through the first
quarter as we continue to make comparisons to the weak market conditions at the beginning of
2009,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The rate of sales and
price growth will be lower in the second half of 2010.”
Summary Of January Sales And Average Price
City of Toronto ("416") 2010: 1,973 $428,151
2009: 1,106 $364,416
Rest of GTA ("905") 2010: 3,013 $396,556
2009: 1,564 $328,935
GTA 2010: 4,986 $409,058
2009: 2,670 $343,632
Source: Toronto
January 15, 2010
PLANNING to Sell in 2010?
Ready for the next chapter in your life?
A bigger home? A better neighbourhood?
If you are considering selling your home or condo this year, then the time to start planning is NOW!
A big part of my listing service is to come into your home and help you create a plan of action to get your home “Showing ready”. We all know that home projects and fix ups take more time then we expect and sometimes we just need an accountability partner. We need that person to keep up on track so that we can meet our timeline goals. I can be that person for you!
I also want to note that though the Spring is often the best time to sell, it isn’t always the case. Right now we are experiencing a low inventory of properties for our buyers to chose from. That has created the bidding wars you’ve heard me mention and what that means to you as a possible seller is a better chance at a higher selling price!! So you may just want to put those plans into high gear!!
No matter your timing its very important to realise that selling your home is going to take some work and that today’s buyer is very savy and they have high expectations. Many a buyer will pay a large amount more for a totally done up property and will offer a substantial amount less for one that needs work.
Showcasing your home to the best of its ability will guarantee you a less stressful, quicker sale and will ensure you get top dollar for your home under any circumstance.
Here are a few elements we will discuss at your personal “Staging, Prep and home evaluation“ appointment with me:
-“less is more” (de-cluttering a space has a very positive effect on the size of the rooms, depersonalizing a space can allow buyers to see themselves living there and since you are planning to move, now is the perfect time to purge and/or start packing)
-“lean and clean” (nothing is more appealing to a buyer than a clean home, we don’t show a home the way we live it in and a clean house is a fresh smelling house!)
-“Your fix it list now becomes your Just do it list” Everyone accumulates a list of small repairs and touch ups throughout their home and so now is the time to stop procrastinating and to get them done. It’s not okay to attempt selling a home with a lot of lose ends as prospective buyers get turned off by these types of issues. They don’t want to take on someone elses project so creating a home that looks move in ready is key!
Contemplating some BIGGER renovation projects?
I’m a great person to have a consultation with as I know what style appeals to the mass, I know what buyers like and dislike, I know what upgrades will equate to a higher return of investment and I have experience in renovating my two homes as well as being involved in design consults on other properties I’ve sold in the past. I played a main role in my clients flip in the beach this past October. What a fabulous house that became and we set the new sales price record for the area!
Call me today to set up your pre-listing appointment and lets get your off to the right foot for 2010!
I’m here to help
Stephanie 416-804-5258
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December 22, 2009
Talks of increasing the downpayment to buy a home, currently 5% minimum, and also reducing the maximum amortization period from 35 to 25 or 30 is in talks for canada’s new lending policies to correct the current craze in the real estate market. I think this is absurd.
After talking to one of my mortgage brokers at RBC he says that these changes, will not likely happen anytime soon if at all. RBC’s analysts says the bank of Canada will increase the prime rate etc first before implementing any of these lending policies and there will be a fight to making these changes.
The reality is that much of what is happening right now in the market, the roller coaster, has been a direct result of the multitude of changes imposed on our real estate market as of late.
First the economic situation (recession) then the addition of the municipal land transfer tax creating a more expensive situation for buyers to move up which reduced the amount of listings on the market creating an off balance of buyers to sellers, very low rates which also increased the number of buyers looking to buy vs rent , and now the imposition of the HST which also is having the effect of more buyers rushing the market to avoid any of these extra costs….
They really don’t think through what the impact of these taxes are on the overall flow of things..
So it really pisses us off when they have to start playing with other elements in order to recorrect the damage they caused!
All in all, I wouldn’t focus on these new possibilities and the effect they could have on the market (good or bad) since it could be a long time coming or not at all J
I would however count on mortgage rates increasing so if you are thinking about buying a home in the near future, now is the time to speak to your mortgage broker about locking in an interest rate. Get pre-approved now so that your mortgage broker can keep you abreast of any developments so that you buy at the best optimal time to avoid any situations that may keep you from buying your home.
In October 2009, Greater Toronto REALTORS® reported 8,476 sales, up 64 per cent from October 2008. The average price for October transactions was $423,559 – up by 20 per cent compared to the same month last year.
“Strong sales growth has occurred across many property classes – from price ranges that would attract first-time buyers to luxury properties selling for over one million dollars,” said TREB President Tom Lebour. “The highest rate of sales growth in October was experienced for properties selling for over $750,000. In contrast, luxury home sales
declined at an above-average rate last year.”
Year-to-date sales, at 74,721, were up nine per cent compared to the first ten months of 2008. Average price, at $392,264 was up by almost three per cent.
“After a short dip in the winter, the average home price in the GTA has rebounded because sales have been high relative to listings,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis. “Watch for listings to rebound in 2010 as home owners react to the strong sales and price growth experienced in the latter half of this
year.”
October 14, 2009
Stephanie's Fall market update
It’s pretty crazy how quickly this last wave of the real estate market and economic cycle has transpired. About a year and a half ago we were experiencing a continuation of the “Seller’s market” that had been going on for the past few years and then just a little over a year ago, the summer of 2008, we experienced a drastic change as the global economy suffered a major downturn.
I watched as seller’s panicked to get their homes on the market thinking that we were at the high end of the cycle. The thought was “we’d better sell now before prices plummet”. This in turn created an over saturated market. There were 5 houses for sale on my street and 31 homes for sale in my immediate neighbourhood. All this was happening in a time of low buyer confidence which was a direct result of the threats of job loss and the crumbling economy. This didn’t last very long.
Luckily in many ways, we Canadians bounced back and by Spring of this year things had practically resumed like nothing had ever happened!
According to the Toronto Real Estate Board in figures released Monday, existing home sales in the Toronto area were up 28 per cent in September compared to last year.
The average price of an existing home was also up 10 per cent to $406,877. That's a new all-time high for an average house price in Toronto. Compare that with 2008, when average house prices were $379,347.
"It certainly is surprising to see prices at that level," said housing analyst Will Dunning. Experts say higher priced homes in the Toronto market have helped to skew prices upward. The relative strength in the financial services sector has also helped, said Dunning. I personally believe that low inventory is the main culprit here as I’ve been in competition on almost every property my clients have offered on.
Active listings were down significantly in September by 42 per cent!!
That has meant buyers are competing for less product on the market, which has led to bidding wars in many neighbourhoods all across the GTA.
This auction mentality for homes is not popular with buyers and is very stressful for the buyer agents representing them. It takes a lot of time find your clients properties over and over again and being bound to offer date etc becomes very cumbersome and makes scheduling often difficult.
The controversial practice – of putting a lower than market value list price on the property – has been a common sales tactic in the Toronto area for the past several years. Of course it does work well in the seller’s favour as we are seeing properties sell for well over market value as Buyer’s become frustrated and “crazy bid” as I call it! They don’t care what the last sale prices were… they just want a house and more so, they want to stop losing after competing with 10 others on every home.
Much of the unexpectedly high activity in the Toronto market has to do with the magic of low interest rates, where five-year fixed mortgages can be had for less than 4 per cent.
October 5, 2009
In the first two weeks of September, Greater Toronto REALTORS® reported 3,361 sales – up 23 per cent compared to the first two weeks of September 2008.
The average price for these transactions was up eight per cent year-over-year to $393,818. “An increasing number of positive reports pointing to economic recovery coupled with low interest rates have kept households confident in purchasing a home,” said TREB President Tom Lebour.
Tighter market conditions since May, as evidenced by rising sales relative to listings and declining average days on the market, have resulted in stronger average price growth,” explained Jason Mercer, TREB’s Senior Manager of Market Analysis.
The market continues to be crazy as buyers are out numbering the properties for sale.
Buyers are scrambling to find properties and with so many selling the first day on market one can barely get their clients out to see these homes before they are snapped up! We are totally back to a sellers market and the “multiple bid” action is in full swing.
Let ‘s hope that come the fall, that sellers jump on the band wagon and get their homes listed. We can all safely say the market has recovered and so for anyone contemplating the move up.. start planning now!
July 12, 2009
Market update Spring/Summer 2009
The spring has come and gone, but it has left us with irrefutable evidence that the recession has officially ended and that we can look forward to a slow and strong recovery. I say “slow” lightly as the past couple of months in the GTA real estate market have remained resilient despite challenging times globally.
Sales in June hit a new record, up 27% over this time last year and May had been up 2% over May 2008-results indicating a fundamentally sound housing market in the GTA.
Consumer confidence has certainly rebounded over the past few months which we can result to “low borrowing costs, more affordable prices in many markets and some pent up demand after the fall and winter sales freeze” (Tony Wong, business reporter)
Low mortgage rates have also resulted in a strong rebound in the most expensive housing markets which is driving up average prices. It was also the decreased activity in this market that had resulted in lower average prices in 2008. The average price for June transactions was $403,972 , up 2% compared to the same month last year Treb reports.
One reason for the spike in prices is that we’ve seen a decline in the supply of homes coming onto the market as it appears many sellers have decided to stay put instead of moving up… perhaps it’s because of the municipal land transfer tax (doubling overall taxes). These tighter market conditions have seen up go full circle from a seller’s market 18 months ago to a flat out buyer’s market about a year ago and now back to a seller’s market. Home prices should continue to grow over the second half of the year as a direct result.
Anyone thinking of moving UP? This may be the year to do it!
Strong prices on the sale of your home due to low supply, coupled with low borrowing rates makes taking on a larger home more worthwhile. Keep in mind too that next year’s Harmonized tax (HST) will increase the costs of many services related to buying and selling including the tax paid on commissions!
WANT to get your house READY for a FALL SALE? Call me now for your free Staging evaluation so you have time to do the prep! Stephanie 416-804-5258
Properties are selling in typical Spring time fashion. The low mortgage interest rates are the driving force here as we creep out of the recession. 3.75% for 5 year fixed mortages or about 3.05% for variable make 1st time buying much more feasible and advantageous. For those of you thinking of moving up, now is the time to do it as the cost to do so will certainly be cheaper than this time next year. Perhaps moving into that long term family home is something to consider.. heck 5+ years of lower interest will save you lots of money in the long run!
Being that I am GTA agent and just in the past month alone- I've sold in Etobicoke, Pickering, Markham, and a couple different areas in Toronto and I have to tell you, all of these areas are moving! I can't get my clients out to properties fast enough and have been in competition for many homes. I'm not fond of the multiple bid market but it is starting to make a come back...
Sellers thinking now isnt the time to sell I beg you to reconsider! If Its a consideration, give me a call and let me help you get your home ready to sell for a good buck and lets move you on to the next phase of your real estate life!
The numbers are in and I’m pleased to share that we had 6171 sales in March 2009 across the GTA compared to last years figures of 6631. March 2008 sales were close to peak numbers and so this March’s numbers are fantastic, just 7% lower. The average price is just down 5% from last year but mainly due to the over $400,000 market seeing less action. Looking at the past 6 months, we are definitely seeing a swing in the market~ a positive indicator that our market is recovering. The days on market has started to shrink, down to 39 days from 45 days the month prior… veering back towards a sellers market.
Mortgage rates are historically low and so it’s much cheaper to own real estate in Toronto then in recent years past. Now is the time to buy!
This will not last. Expect prices to fully recover by fall of this year and interest rates will start to rise before the year is out.
The FEDERAL Budget new tax credits applicable to home owners/buyers
The federal budget offers several measure of interest to people who plan to renovate or buy a home. Great to take advantage of these credits whenever possible since they dont come along often!
Here's how they could theoretically work in unison for a first-time buyer or those already in a home:
Step 1: Claim the First-Time Home Buyers' Tax Credit
- Offers tax relief of up to $750 to first-time buyers to help defray closing costs on their purchase.
Step 2: Take advantage of changes to the federal Home Buyers' Program
- You can take up to $25,000 out of your RRSP to buy a first home and pay no taxes, up from $20,000
Step 3: Renovate your new home with help from the temporary new Home Renovation Tax Credit
- Claim up to $1,350 in tax relief for upgrades to your home done before Feb 1, 2010; available to everyone, not just first-time buyers; applies to renos costing $1000 to $10,000
*Note it works out to a 15% of total spent. Under $1000 is exempt, over $10,000 - no credit
Step 4: Get energy efficient using the ecoEnergy Retrofit program, which was expanded in the budget
- Get a grant of up to $5,000 for changes to your home that add to energy efficiency:
**you can also claim the home reno tax credit for these upgrades*
With the new HST tax coming into affect July 2010, this year really is the year to save. If you have future plans to renovate/update your home.. I suggest you accelerate that date! I'll have more info regarding the HST and what it will have affect on you and your purchases.
WINTER 2009 Market Update
Let me start off by saying that today’s current situation is not all “doom and gloom”. Yes, we all know that Canada has officially slipped into a Recession which is simply defined as two successive quarters of negative growth but we need not worry too much as there are no indications that we're headed towards a depression. The good thing to note is that Canada has avoided some of the worst financial fallout in the US & other parts of the global economy due to having the soundest banking system in the world. Though our economy is not invulnerable to world events, RBC & other Canadian banks have continued to work closely with the federal government to decrease the risk to our system while improving the liquidity in the Canadian financial markets. In today’s Toronto star, Mark Carney is predicting "the economy will pick itself up off the floor starting later this year & stage a strong rebound in 2010.” Some say that’s pretty optimistic but it is certainly possible & a better direction to focus our attention on.
Despite all of this we continue to have steady, significant growth in the new mortgage financing & coupled with amazing low interest rates now is really a good time to buy!
Many of you are probably thinking I’m nuts as your first instinct in a down market is to hsave your money but the reality is there are a lot of great opportunities out there, everything is so cheap & real estate prices have come down. Spending your money is what keeps the economy moving, many jobs depend on it & we just don’t realize how one thing affects another.
As may of you have read, the GTA housing market has not been immune to the economic slowdown in Canada. Flagging consumer confidence & rising unemployment has certainly taken its toll since many potential home buyers became less certain about their positioning in the economy these past 6 months. Many of my prospective buyers are “sitting on the fence” as some don’t know whether they’ll have their jobs in a couple months, some think prices will drop further & some, well they're just scared. The number of home sales will be more moderate this year in comparison to the boom over the past 10 years due to the waning consumer confidence & buyers are experiencing more choice in the resale home market. Simple economics of “supply and demand” (lots of homes for sale & less buyers) has resulted in lower selling prices & Toronto in particular has seen a drop of anywhere to 2.3% in the condominium market to 8.2% in the detached home market. (Royal LePage Jan 2009 quarterly survey)
The average price of homes has dropped to $364,415 in Toronto compared to the $404,202 but lets be clear on this statistic. This number is based on a average of all homes sold in the different price ranges. That being said, the majority of homes being sold are in the $200,000-400,000 price range with the properties over $400,000 being the most affected. This is a sign of less “move up” or “luxury” purchases. First time buyers & investors are the ones seeing this as a good opportunity to get into the market and they should! Given that buyers are not facing the early 90’s affordability issues when rates went up to 20%+ (compared to the 3.8-4.29% rates of today) then surely is a good time to get in the market.
However, move-up buyers should also see this as an opportunity! Though you might get a little for your home now, the real savings are on the “move up” purchase price.
Think about it. If you subtract 8% from your home’s value now & then subtract 8% from the more expensive home, what is a bigger chunk!?! Also, since the homes in the higher price range aren’t selling as often then that could equal even more savings opportunities!! As your family grows, so does your need for a bigger family home. Isn’t that reason enough?
For those of you with equity in your homes & considering expanding your real estate portfolio, now is the time to do it! Rentals through realtors has surged 30% as number of sales have declined. Rental rates were up 2% from a year prior while average rents remained constant. Key to note that very few rental apartment buildings have been completed in the GTA over the past few years & so investor owned condominium apartments and multi unit home have become an increasingly important component of the GTA rental market.
The “window of opportunity” in our present Toronto real estate market should be taken advantage of.
If you are interested in discussing your opportunities… don’t hesitate to call me!
Royal LePage Real Estate Realty Brokerage 1052 Kingston Rd., Toronto, ON M4E 1T4 phone 416-690-2181 fax 416-690-3587 Stephanie@Style4Living.com
1052 Kingston Rd., Toronto, ON M4E 1T4