Market Update

Dear Friend,

Toronto Real Estate Board members reported 7,187 residential sales through TREB’s MLS

System in March 2019, almost the same amount as the 7,188 sales reported in March 2018.

While the number of sales remain the same, the number of new listings, homes available for

sale, was down by 5.1 % year-over-year. This lack of inventory has created a shortage of homes

available for sale, resulting in multiple offers and a price increase of an average of 5% since

January of this year.

 

Unquestionably, there seems to be a concern about the marketplace and for the life of me I

cannot fathom why. Interest rates remain low and with the lowering of the Bank of Canada yield

rates, may drop further. Immigration and foreign investment continues as does the strong

economy. New condominium towers continue to be completed and many new starts are under

construction, but immigration and demand continues to swallow up available units. The vacancy

rent is still at 0%, resulting in increased rental rates. A modest 500 sq. ft. downtown condominium

unit now rents for $2200 - $2400 per month, with parking spaces renting for $125-$250 per

month.

I truly believed the market is poised to take off again, with only the stress test holding back buyers

who want to buy more expensive properties. New construction towers represent great rental and

investment opportunities, and should be considered.

 

If you are thinking about upgrading your home or buying an investment property, or know of a

friend who is, give me a call. Prices in 2019 are already up 5%. Fortune favours the bold. You

don’t have to buy, but at least let’s talk. Let me put my experience and expertise to work for you.

 

Have a great month

Your Friend In Real estate.

 

Sam Wadhwa Broker Of Record

Neelam Wadhwa Sales Representative


March, 2019

Dear Friend,

No real surprises in the market, approximately the same number of sales as last February, 5,025, with approximately the same number of listings, 13,284, which is less than 3 listings for every sale, making it an overall “sellers” market as buyers have few choices when purchasing a home.

While this is an average number, the reality is that homes over $1,000,000 are experiencing a balanced or even a buyer’s market depending on location. A balanced market is where there are 4-6 homes available for every sale and a buyer’s market is where there are over 6 homes available for every sale.

This dichotomy has been brought about by the government’s mandated mortgage stress test which has left some buyers on the sidelines who have struggled to qualify for the type of home they want to buy. The good news is that  government long term bonds are now offering lower returns, an indication that interest rates may drop in 2019.

There is “feeling” and “reality”. The average “feeling” is that the market is bad and no one is buying homes. That impression has been brought about the media who is always sensationalizing to sell advertising. The “reality” is that over 9,000 homes sold in the first 2 months of the year, despite awful winter conditions, an indication of peoples willingness and desire to own their own home. In February almost 1,200 homes sold over $1,000,000 with 165 selling over $2,000,000. There is a market and an opportunity!

As the old saying goes, “he who hesitates is lost.” There are great opportunities in this market, and I believe those who are purchasing now will be the winners as prices are bound to increase as they always have.

Give me a call, lets chat. When prices increase, the more expensive homes go up more, so this market is a great time to upgrade your home!

Have a great month,

 

Your friend in real estate

 

If you have a friend thinking of buying or selling, please put us in touch, I will take extra good care of them!
 
Sam Wadhwa
Broker of Record
Neelam Wadhwa
Sales Representative

February, 2019

Dear Friend,

Despite the harsh January weather, Toronto Realtors sold 4009 homes through the Toronto Real Estate Board MLS system, slightly more than the same period last year. This bodes well for a very active market in 2019.

While the average selling price was up by 1.7 % on a year-over-year basis, it really does not represent what is happening in the marketplace, as not all housing sectors are experiencing the same effects. Condominium apartments continue to lead the way in terms of price growth and demand, while luxury homes in some areas are experiencing a downward trend due to the number of homes available for sale.

Without a doubt the changes in mortgage qualifications have created tighter market conditions in homes and communities under a million dollars as well as condominium apartments. Sales in other sectors have become sluggish but really represent a good opportunity for those buyers who are looking to upgrade. Overall I expect prices to increase moderately 3% to 5% in 2019 but primarily in the above mentioned sectors.

Today’s market has some great opportunities for investment and upgrade potential but with so many different market sectors and conditions, it’s really important to have a full full-time real estate agent like myself consulting to you so you can make the best possible decision your family and your future.

If you have any questions about the market, please give me a call, no obligation. I will  be happy to help and give you the benefit of my expertise.

 

Have a great month,

 

Your Friend in Real Estate.

 

Sam Wadhwa Broker of Record

Neelam Wadhwa Sales Representative

 


November, 2018

Dear Friend,

Experts predicted that October 2018 would have fewer sales and more homes available for sale than October 2017. It came as a surprise when the opposite occurred!  The 7,492 homes sold by Toronto Real estate Board members was 6% more than October 2017, and prices increased by 3.5% year over year. 14,431 homes were listed on the MLS system, down 2.7 % compared to October 2017. The fact that sales were up and new listings were down suggests that market conditions have become tighter. With more sales and fewer homes for sale over the last 5 months, listing supply remains an issue in the Greater Toronto Area.

For the month of October, homes sold on average within 24 days and a list to sale ratio of 99%. BUT… that’s an average, for all types of properties in all areas in the GTA. In Vaughan it was 96% in 32 days, and in Durham, 98% in 24 days. In other areas it was always within 5% of the asking price in approximately 3 weeks. It’s obvious, that the market is very sensitive to price and if a home is not sold within 3 weeks, actions have to be taken, either to improve the property, the marketing or the price.

This is the market that a full time agent, a company that spend money on marketing, an overwhelming web presence, world wide access to buyers, services and staff makes a huge difference! Despite what some agents say, the agent and the company is the difference between selling and not selling.

 

This market will continue into 2019. It is truly the best time to buy and sell! Give me a call, let me prove to you why.

 

Have a great November,

 

Your Friend in Real Estate.

 

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

 


October 2018

Dear Friend,

6,455 homes sold through Toronto’s Real Estate Board MLS® System in September 2018 – up 1.9 per cent compared to September 2017. The average selling price for September 2018 also increased by 2.9 per cent over the same period to $796,786.

The Toronto market continues to be very fragmented in terms of supply and demand with some areas experiencing a Sellers’ market with more demand than supply and other areas experiencing either a Balanced or Buyers’ market.

While higher borrowing costs and tougher mortgage qualification rules have kept sales levels off the record pace set in 2016, many households remain positive about home ownership as a quality long-term investment.

Without a doubt, the GTA population will continue to grow and expand. The new Cannabis laws will create more jobs and attract tourists as it has done for Amsterdam all of these years. The real challenge in the housing market will be supply rather than demand and that will continue to make real estate a great investment.

As the following chart illustrates, the real estate market is different depending on style and location of the property.

                                Sales & Average Price By Major Home Type 1.7

                                September 2018

Sales

Average Price

 

 

416

905

Total

416

905

Total

2018

 Detached

Semi-Detached

Townhouse

Condo Apartment

 

665

255

251

1,282

 

2,164

398

823

509

 

2,829

653

1,074

1,791

 

$1,342,363

$995,951

$743,721

$615,582

 

$905,722

$661,907

$600,947

$455,686

 

$1,008,361

$792,353

$634,314

$570,140

Year-Over-Year Per Cent Change

Detached

Semi-Detached

Townhouse

Condo Apartment

4.6 %

0.4%

10.6 %

-5.5%

2.1%

4.2%

7.9%

3.0%

2.7%

2.7%

8.5%

-3.2%

-1.4%

6.3%

8.2%

11.7%

-0.6%

5.0%

2.5%

6.4%

-0.6%

5.3%

4.1%

10.0%

 

If you are considering buying, or know of someone who is, please give me a call, even just to bounce some ideas off of me. This type of market requires a full time, experienced professional in your corner, someone like me!

Have a great October,

 

 Your Friend in Real Estate


September 2018

Dear Friend,

Another good month for sales in Toronto, as Toronto Real Estate Board members sold 6,8379 homes, 8.5% more than last August with the average price also being up 4.7% over the same month last year.

With only 21/2 months of homes in inventory in Toronto, by definition, it would appear to be a sellers’ market. It is in many areas, with well-priced homes selling quickly. In other areas, with inventory being at 5-7 months, it’s a buyers’ market.

Today with free access to information, consumers are more aware of market value than ever before. Homes offered for more than 5% over market value are not getting showings or offers. The proof of it is that so far in 2018, homes sold for 98% of listed price in 21 days.

I expect activity to pick up a little as we enter the Fall market, with prices staying relatively stable. A stable market is the best market to buy and sell in!

No one knows for sure what next year will bring, but I expect house prices to increase. The economy continues to be great, low interest rates, high desire for home ownership exists and more immigration into Canada continues.

If you are considering buying or know someone who is, give me a call. Let me put my experience to work for you. I know the good areas, property values, investment opportunities and will help you stickhandle the process to protect your interests.

 

Give me a call, let’s chat.

 

Have a great month,

 

 

Your Friend in Real Estate.

 

 

PS. I am never too busy for your referrals!


August 2018

Dear Friend,

Ontario might be suffering from a shortage of rain, but there was certainly no drought of buyers when it came to home sales in Toronto.

July saw almost 7,000 transactions, up 18% over last July and prices rose 4.6% July 2018 over July 2017 and the average price now stands at $788,822.

At Realtron, our sales were up 19% and we sold 941 homes from our inventory of 1543.

You are probably wondering where the discrepancy is. Some real estate agents believe the market is slow, while others, like myself, are saying the market is good. What’s going on?

Without being facetious, it has to do with company and experience. Those agents who are complaining have never experienced a normal, balanced real estate market. A balanced market is where there is a good supply of homes for a buyer to choose from (4-6 for every sale) and prices are relatively stable, selling at or close to market value. The statistics show that so far this year, the average home in Toronto sold for 99% of asking price within 21 days. In York region its 96% in 31 days and in Durham its 98% in 24 days. So as you can see, a home when priced according to market value, that’s properly marketed and promoted, should sell within 30 days.

Company also makes a big difference. Re/Max is huge in marketing, getting over 2,000,000 hits a month on our .ca website alone, not counting our RE/Max global website which is available in 48 different languages. That’s the kind of marketing power you need today to get a home sold.

So if the agent you are talking to says the market is bad or slow, get a second opinion.

A balanced market is the best time to buy and sell, as prices are stable and you are not under time pressure to buy.  Condominiums also are still a great buy and easy to rent due to the low vacancy rate.

If you have any questions, or know of someone thinking of buying or selling, please let me know, I would love to help.

 

Have a great August,

 

Your Friend in Real Estate


July, 2018

Dear Friend,

The Toronto Real Estate Board reported 8,082 home sales through TREB’s MLS® System in June 2018 – up 2.4% over the June 2017 result.

The average selling price in June edged up by 2% on a year-over-year basis to $807,871. While this is an interesting statistic, it does not reflect the reality of the market. The average price reflects the price of homes that have been selling. Because of the tightening of the mortgage rules those homes have generally been under $1,000,000 with 35% of them being condominiums, either apartments or townhouses, selling at an average price of about $575,000. These less expensive homes impact the “average selling price”.

The other misleading statistics are that the average sales price which was 99% of the asking price with the house selling in 21 days. These statistics are misleading because it has become the custom in the industry to cancel a listing that is not selling and to relist it at a new price. So in reality a property may have had their price adjusted several times before it finally sold and the averages are from the final listing and not from when the house was first placed for sale.

One fact that is undeniable is that if a property is on the market and hasn’t sold in 3 weeks, it is at least 5% over market value. Today with the Internet, everyone is aware of what a home should sell for. Even if an agent was able to sell a home over market value the home is generally appraised for mortgages and the mortgage would be declined because the house sold at too high a price for the neighborhood. So the question arises, then why do we need a real estate agent? A good agent markets the property to find the buyer who would pay top value for the property. The agents who have and who attract the most buyers to the property have the best chance of getting the best price terms and conditions for their sellers. Today more than ever you need a strong agent with a well-known company to represent your interests.

We have moved into a more steady traditional real estate marketplace, taking an average home 30 to 60 days to sell. It takes that long because we have to find the one buyer would pay the seller the maximum value for the home. The last few years many real estate agents were order takers, today, being in a more traditional sales cycle market, realtors have to be salespeople, finding the buyers and showing them the benefits of the home, the area and the benefits of living in a particular neighborhood.

The real estate market may seem complicated at the present time but it really isn’t. If you or friend are thinking of buying or selling please give me a call. Let me answer all your questions and help you make a decision that is right for you and your family.

Have a great month,

 

 

Your Friend in Real Estate.


June, 2018

Dear Friend,

 

The Toronto Real Estate Board reported 7,834 sales through TREB’s MLS® System in May 2018. Not a bad month, but a little bit off the 8,500 sales that I had predicted. The average price increased slightly, and as of the end of May, stands at $785,822, down 4.5% from 2017’s year-end average price of $822,622.

But averages do not tell the whole storey. The truth of it is, that the Toronto market is made of many components, chief amongst them being price, location and type of home. The Toronto market conditions are very much different these days due to those factors.

Whether it luxury condominiums or semidetached or detached homes, you cannot generalise, some areas went up, some areas went up more and some areas went down!

There are now about 50,000 realtors in Toronto, and unfortunately many of them do less than 3 transactions per year with a surprising large number (about 15,000) not even doing one transaction per year!

It’s always important to deal with an experienced professional whether it be a lawyer, carpenter or bricklayer at best of times. In times of market flux, like we are in today, you need an experienced full time realtor on your team. That would be me.

If you have any questions, or know of someone buying or selling, give me a call and let me help you and them understand the market.  I can stick handle your questions, and give you the information you need to make the right decision for you and your family.

 

Have a great June!

 

Your Friend In Real Estate.

 

PS. I am never too busy for your referrals!


May, 2018

Dear Friend,

Toronto Real Estate Board members reported the sale of approximately 8,000 homes which while a very healthy number was not as high as the average April market. The two chief reasons being the changes in the mortgage qualification rules, and the extended winter weather we experienced. These two factors created a wait-and-see attitude in the mind of the average buyer, resulting in fewer than average sales. I expect the turnaround will come this month as more buyers jump into the market seeing that in fact prices are slowly increasing and also the news out of Vancouver that prices have increased after similar government intervention caused prices to drop initially.

I truly believe that a year from now a lot of people will be sorry they did not get into the real estate market because prices will continue to rise. The condominium market is one great example, as prices have increased from last year and continue to rise due to strong demand. (It’s still a great investment vehicle you should consider!)

Toronto’s economy, immigration and confidence have not changed and I expect May 2018 will see a big jump in sales as buyers who have been waiting on the sidelines jump into the market.

If you are considering buying, please decide as quickly as possible as I believe prices will start increasing in May. Give me a call and let’s talk.

If you have any friends who considering buying or selling please give me a call I really appreciate your referrals!

 

Have a great May!

 

Your Friend in real estate.

 

Sam Wadhwa:  Broker Of Record

Neelam Wadhwa: Sales Representative