October 2017 News Letter

Dear Friend,

The 6,379 TREB sales in September, while not the 9,800 of a year ago, are a good indication that the market is healthy and that there is strong demand for homes. Unfortunately our society is one of the following others, and so quite a number of people who were prepared to pay unreasonable prices for homes in March are now waiting to see what happens to the market before they jump in.

 While the market is on average still a sellers’ market with three listings for every sale, there are some market areas where there are six listings for every sale and the condominium market with less than two listings for every sale, resulting in multiple offers and prices increases. Condominium apartments on average have increased 23% since the start of the year.

 Good news, bad news! (In the Toronto market)

 The good news for buyers is that while the inventory of homes is not huge, it’s certainly better than it was earlier this year. Those buyers who have purchased or who are purchasing today do not have the pressure of the multiple offers (a well-priced property still receives multiple offers!) and the heartache of losing sales as they did at the start of the year.

 The bad news is that the prices that we had in March were an anomaly (at the current time) and on average prices came down 20% from March of this year, (still up 15 % since December 2016).

 Many potential sellers are waiting or holding on for prices to return to the high levels of March before they sell. There is logic in that decision if they are moving out of the country or planning to rent. However the majority buy another property. Waiting for prices to go up makes no sense since whatever increase they have in the value of their home, will occur in their new home as well.

 As always, market knowledge and experience ensures a favorable outcome. That’s where I come in if you’re thinking of buying or selling or know of someone who is, give me a call let me put my experience and expertise and the power of RE/MAX behind you!

 If you have any questions please feel free to give me a call, after all you do have a friend in real estate!

 

Sam Wadhwa (Broker Of Record)

Neelam Wadhwa (Sales Representative)

 

Your Friend in Real Estate.


September 2017

Dear Friend,

There is a lot of misinformation in the real estate market these days. The confusion is created by the fact that we have different markets in different areas of the city and yet people are trying to have a general statement over the whole marketplace. Imagine, it’s like having a one size fits all bathrobe that can fit a five foot person or six foot person. Yes it fits but not really well. That’s the problem with general statements.

Last month (August) there were 6,357 homes sold and the listing inventory of approximately 16,500 listings or about 3 listings per sale. The rule of thumb is that when you have a balanced market there is one sale for every 4 to 6 listings. It’s balanced because buyers have a good choice of what they can buy and they can negotiate slowly and properly with the sellers to come to a price that both parties are happy with. A sellers’ market is when there is less than four listings for every sale and that means the buyers do not have much of a choice and bidding wars occur, as experienced over all the last few years. A buyers’ market is where there are more than six listings for every sale and the buyers have an advantage over the sellers in that they can find the most desperate sellers who need to sell.

As we enter the fall market, on average, there are three listings for every sale, so a sellers’ market. Some areas of the city (Central Toronto) fit this model. Other areas of the GTA (Richmond Hill or Newmarket) have 5 listings for every sale, or a balanced market. King City on the other hand has 10 listings for each sale, a buyers’ market. Condominium apartments on the other hand are a hot commodity, with1 sale for every two listings.

Every segment the city is experiencing a different market, and that’s not taking into account detached or semi-detached homes, again, a difference that’s important to the strategy when buying or selling.

More than ever before, that’s the value an experienced realtor like myself brings to the table, giving you the necessary information so you can make the right decision.

If you are trying to figure out the market, or have a friend who is considering buying or selling, give me a call and let me show you what is really happening.

 

Have a great September

Your Friend in Real Estate.

Sam Wadhwa (Broker Of Record)

Neelam Wadhwa (Sales Reprsentatives)

 

P.S. I am never too busy for your referrals.

 


August 2017

Dear Friend,

Another good month for the Toronto real estate board, as TREB members sold 5,921 homes in July. The average sales price now stands at $857 823, up 17% over year-end 2016 of $729,827. There are 18,751 active listings on the market and with an anticipated sale of 5,500 homes in August, There are 4 listings, (homes listed for sale) for the average buyer to choose from. These are averages, with some areas having only two listings available per sale, others having 6 homes for sale. A balanced market is described as 4-6 listings available per sale,  a seller's market is described as less than 4 listings per sale and a buyer's market is described as 6 + listings per sale.

Are you wondering why I said another good month, when the statistics talk about the market being down 40% year-over-year? That's the problem with some statistics, they don't give you a true picture. If Michael Jordan scored 60 points in a game (which he did 5 times in his career) and then the next game only scored 30 points, the headlines would read Michael Jordan’s scoring down 50%. Not really reflective of what happened or the quality of the game that he had, but it's a statistic! Another silly and misleading statistic is when the commentators say such and such baseball team hasn't beaten the other team in the last 30 years in the playoffs. The teams change pretty much every couple of years, what is it significance of bringing in a 10 or 20 year win-loss with one team against another? It makes no sense to me.

With 2016 being the most active year ever in the history TREB, and March where average prices increased by 30%, we have to take the comparison statistics with a grain of salt, as they do not reflect the reality of the current real estate market.

The economy, interest rates, high immigration, high demand, lack of inventory, remain unchanged. The government housing policies, while making some buyers delay their decision, will have no long-term impact on the Toronto real estate prices as we've seen in Vancouver. In fact, on average, in July homes sold at 98% of asking price with an average time on the market of 21 days. Good properties marketed well, are still selling quickly!

The wait-and-see attitude of some buyers and the normal slower summer market has created an opportunity for those who missed the market earlier this year to buy.

If you're thinking of purchasing or know of someone who is considering buying or selling, give me a call, I'll be happy to help.  After all, you have a knowledgeable and experienced friend in real estate!

 

Have a great August!

Your friend in Real Estate.

Sam Wadhwa (Broker of Record)

Neelam Wadhwa(Sales Represemtative)

Re/Max Realtron Real Realty Team

 


July 2017

Dear Friends,

June’s sale of 7,974 homes brought the year to date number to 54,813, at an average price of $870,106, up 19% since the start of the year. Historically, 53.97% of the year’s sales are done by June 30, so it looks like 2017 will have 100,000 homes sold, down from the record breaking 113,000 of 2016.

Having said that, I must admit, that I would not be surprised if we experience a record number of sales, (not prices), in the fall market.

Why? None of the factors that have created the GTA market over the last 5 years have changed. Demand, affordability, strong economy, high immigration and Canada’s position as a great country to invest in, remain stronger than ever.

The market slowed as people took a rest from the 30% price increases in March, and the Ontario Fair Housing Plan, announced on April 20, put some buyers on the sidelines, waiting to see the impact. Here it is.

 

             Sales & Average Price by Major Home Type 1.7

 


Sales

 

Average Price

 

 

416

905

Total

416

905

Total

2017

 

 

 

 

 

 

Detached

848

2,602

3,450

$1.386.524

$948.099

$1,055.863

Semi-Detached

273

486

759

$987.404

653.936

$773.879

Townhouse

296

985

1,281

$704.449

$596.028

$621.081

Condo Apartment

1,702

669

2,371

$552.697

$436.097

$519.784

           

Year-Over-Year Percentage Change

Detached

-42.9%

*45.7%

-45.0%

10.1%

6.2%

7.8%

Semi-Detached

-37.2%

-40.9%

-39.6%

8.1%

12.4%

11.1%

Townhouse

-33.2%

-31.4%

-31.8%

10.9%

12.8%

12.2%

Condo Apartment

-21.7%

-27.6%

-23.4%

23.2%

21.4%

23.2%

 

 

 

 

 

 

 

The next 2 months are, I believe, an opportunity to buy without the same level of pressure experienced last year. While prices in some areas have softened since March, well priced homes are still getting multiple offers and selling overnight. Buyers have adjusted to the new prices, and recognise good value when they see it.

I know it sounds self-serving, but if you are considering buying, I strongly recommend the time be now, while inventory levels are a little higher and others wait to see what the fall market brings.

Give me a call, let’s talk, after all, you do have a friend in real estate!

Have a great July.

Your friend in Real Estate.

Sam Wadhwa (Broker of Record)

Neelam Wadhwa(Sales Represemtative)

Re/Max Realtron Real Realty Team


June 2017

June 2017

Dear Friend

Traditionally, the Toronto spring market’s months of April and May are the most active months for Toronto realtors. 2017 bucked that trend, as March’s record-breaking number of 12,027 homes sold (18% more than March 2016) took many buyers that would have normally purchase in the spring market.

While the 10,196 homes sold in May are great numbers, they are down 20% from May 2016. The listing inventory increased to 18,477 homes and though it’s an improvement, we are still in a Sellers’ market as buyers do not have many choices of homes to buy.

The question of price is a great question. The prices that homes sold in February and March were record breaking prices, perhaps overinflated due to competition and the media. As the market took a breather after 30% plus price increases, those sellers who had bought and were waiting to sell in the spring market are now not getting the prices they expected. Today’s sales are not getting March’s record breaking prices! Prices are still strong, but are down from the prices we saw in March. Sellers caught owning two properties have to adjust their price expectation. The result, prices down. Those sellers pricing their home correctly in the new market conditions are getting multiple offers and selling quickly.

The good news is that the underlying factors that have caused price increases in the Toronto market have not changed. Lack of supply, low interest rates, high immigration, a strong economy and other positive factors mean that prices will continue to rise at a more normal 4%-7%. But prices will rise!

Some buyers have adopted a “wait and see attitude” before they act, this reduces competition. Over the next two months Sellers with two homes will reduce their prices so as not to be stuck with two properties. These factors will create a great opportunity to buy before we go back to the type of market we saw last year. Prices will not go up 30% in one month, but the demand is too high for prices not to increase.

If you are considering buying or know of someone who is thinking of buying, give me a call. Let me share with you my thoughts about why Toronto prices can only increase. The rest of the world thinks Toronto is a great place to invest in real estate, we should as well!

Have a great month!

Your Friend in Real Estate

Sam Wadhwa (Broker) & Neelam Wadhwa (Sales Representative)

Re/Max Realtron Real Realty Team


May 2017

May 2017,

Dear Friend,

Finally, a little respite in the frenzy of buying Toronto homes! A frenzy, I believe, created by the media, which were predicting prices would increase by over 30% in March. Really, a self-fulfilling prophesy! By the way, this is the same media that a few months back was speculating that Toronto prices were abnormally high, and the bubble was going to burst and prices would fall. My only comment; the media is primarily concerned about ratings and advertising income, so their news and headlines are biased to achieve their goals! 

We started 2017 with extremely low home inventory, and an abundance of buyers. This continued the trend of multiple offers and led to an abnormally strong Toronto market! The media jumped on the band wagon and a difficult situation became even more so. The average price jumped 21% since the end of 2016, and some areas and properties increased by over 30% in the same time period.

Such huge price jumps could not be sustained forever, and as buyers took a pause, more listing started coming on the market, balancing the demand. On April 20, the government added a 15% tax on foreign buyers, (estimated to be 5%-8% of the GTA sales) which also made some buyers adopt a wait and see attitude as to how prices would be affected.

So here are the facts for April.

 

April 2016

April 2017

YTD April 2016

YTD April 2017

Properties Sold

12,016

11,630

34,623

36,822

New Listings

16,252

21,630

 

 

Average price

$739,762

$920,791

$697,679

$888,638

 

The basic factors have not changed in the GTA. Low interest rates, great economy, confidence, immigration and continued demand. This will continue to drive the market in 2017. Sellers who priced their homes at prices in excess of the market value will either take their houses off the market, or adjust the price to reflect the current market value. The media will make a fuss of someone reducing their house by $100,000 and still not selling. (Really to be expected if the house is priced at $1,300,000 and is only worth $1,000,000).

What we are experiencing at my company, RE/MAX Realtron, is that the number of messages, sign calls and appointments to view our listings remains strong, and buyers now have more properties to look at before they decide to purchase. (We had 1,113 transactions in April) If you are considering buying, now is a great time, while some are waiting to see what happens. The additional inventory and lighter demand puts you in a better bargaining position than before.

Let’s talk, the situation is complicated. I’ll be happy to explain it all and show you how you could benefit from my experience in the current circumstances!

Have a great May,

Your Friend in Real Estate.

Sam Wadhwa (Broker) & Neelam Wadhwa (Sales Rerepresentative)

Re/Max Realtron Real Realty Team


April 2017

April 2017

Dear Friend

As expected, (March being the start of the Spring Market) Toronto Real Estate Board Realtors reported 12,077 residential sales through TREB’s MLS® System. For the TREB market area as a whole, annual sales growth was strongest for condominium apartments and detached houses.

While new listings were up strongly compared to last year, the rate new listings growth was still lower than the rate of sales growth. As a result, prices rose due to the competition of more buyers than houses available.   

The challenge is that the growth of the city population is outgrowing the available space. It’s too bad that the various municipalities are so slow to allow permits for new developments and charge high fees to builders to get the land developed. More land for homes and lower costs to develop lands would go a long way to solving the undersupply of homes we are experiencing.

April will be another banner month for home sales as we continue into the Spring Market. While it’s true that a house sells itself, the price a Seller gets is dependent on the skill and marketing plan that an experienced, full time agent brings to the table. In this crazy market, I see daily examples where the house would have sold for more had the agent done a better job.

Remember, I am never too busy to answer your questions or handle your referrals!

Have a great April!

Your Friend in Real Estate

Sam Wadhwa & Neelam Wadhwa


March 2017

March 2017

Dear Friend,

More of the same, with no end in sight!

That pretty much sums up the Toronto real estate market. Record level sales, record level prices as 8,014 residential homes sold in February through the Toronto Real Estate Board MLS system.

It’s obvious that many Greater Toronto Area households as well as overseas investors continue to view Canadian home ownership as a great long-term investment. The high demand for ownership housing is broad-based, with strong sales growth for most low-rise home types and condominium apartments. This makes sense given the results of a recent consumer survey undertaken by Ipsos, which found an even split between intending first-time buyers and existing homeowners who indicated that they were planning on purchasing a home in 2017.

While the demand for ownership housing grew over the past year, new listings were down on a year-over-year basis by 12.5% further putting pressure on prices. Annual rates of price growth continued to be strongest for low-rise home types, particularly detached houses. Growth rates for condominium apartment prices were also in the double digits, likely a result of strong demand from first-time buyers and investors.

Though it sounds self-serving, I cannot stress enough the importance of an experienced full time realtor to help you in the purchase and sale of property. Last year, the Toronto Real Estate Board reported approximately 226,000 transactions shared by about 49,000 realtors, or less than 5 sales each! Really not enough practice to stay on top of one’s game.

If you have some real estate questions, or know of someone considering buying or selling, give me a call. I’ll be happy to put my experience to work for you. I’m never too busy for your referrals!

Have a great March!

Your Friends in Real Estate.

Sam Wadhwa & Neelam Wadhwa

 


February 2017

February 2017

Dear Friend,

With the sale of 5,188 homes, January 2017 became the most active January in the history of the Toronto real estate board, just outselling January 2007’s 5,175 sales and January 2008’s 5,075 sales.

It’s no surprise that the annual rates of sales growth were higher for condominium apartments than for low-rise home types. As prices continue to increase and first time buyers (estimated to account for half of the sales) can no longer afford low rise type homes, it’s natural that they turn to condominiums as well as those communities outside of Toronto where prices are more reasonable. We have already seen and will continue to see price increases in those “bedroom communities” an hour outside of Toronto

The big challenge continues to be low inventory. The demand is so strong that homes are snapped up as they hit the market. Unfortunately, there does not appear to be an end in sight to this trend.

A strong economy, large immigration, international investors and job seekers from other provinces all put pressure on the real estate market, and that means prices will continue to increase.

It truly is a difficult market for buyers as they scramble to buy something affordable as prices continue to escalate. More than ever before, it’s critical to have a full time, experienced professional looking after your real estate needs. With every house experiencing multiple offers and bidding wars, it’s simply not enough to just throw in an offer. There is a lot more that goes into looking after the best needs of your client, proper research and consultation to know what price to offer in a constant changing market. That is where my expertise comes in.

Give me a call if you are considering purchasing or know of a friend who is, and I will put my experience and expertise to work for you.

Have a great February,

Your Friends in Real Estate.

Sam Wadhwa (Broker Of Record)

Neelam Wadhwa (Sales Representative)

Re/Max Realtron Real Realty Team


January 2017

Dear Friend,

No surprise, 2016 was the second consecutive record year for home sales for the Toronto Real Estate Board, as Realtors reported 5,338 homes sold, up 8.6% over December 2015. This brought the total number of sales in 2016 to 113,133, up 11.8% over 2015. The overall average selling price for calendar year 2016 was $729,922 – up 17.3% compared to 2015’s final price of $622,121.

The prognosis for 2017? More of the same. Low inventory, high demand, and increased prices, as none of the factors from 2016 have changed.

The strongest rate of growth of all home types in 2016, was in condominium apartments, up 18.5%, with the average condominium apartment selling at $440,669. Why? The answer is obvious. As prices of other home types became unaffordable to first time buyers, they had no choice but to look at condominium apartments.

The next big areas of price increase? The outskirts. Barrie, Newmarket, Oshawa, Pickering, etc. Those people who cannot afford Toronto prices, but are willing to drive in order to get the home they crave, will have few other options.

Experience and knowledge. Those are the 2 most important factors when choosing any professional. Whether it be a doctor, lawyer, car mechanic, gardener, cleaning lady or real estate agent. Picking by price generally does not end well. The number of real estate agents has grown exponentially in the last few years as people believe it’s an easy business. As they realize the difficulties, they lower their prices to get business. I have seen many cases, where the seller saved $15,000 in commission and lost $50,000 +++ in the sale price of their home.

If you are looking to purchase or know of someone who is, please give me a call and let me put my experience and knowledge to work for you, you will be pleased with my results!

 Have a great 2017, and feel free to call me and chat if you have any questions, after all, you have a friend in Real Estate!

Sam Wadhwa (Broker of Record)

Neelam Wadhwa (Sales Representative)

Re/Max Realtron Real Realty Team Brokerage