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


December 2016

December 2016

Dear Friend,

Toronto real estate board members reported the sale of 8,547 homes in November 2016. This result represented a 16.5% increase compared to November 2015. The average price of a home was up approximately 22% compared to a year ago, and now stands at $729, 849.

The talk of lack of inventory, increase in prices, strong demand and buyers frustrated by the lack of listening is old news. This is the marketplace that we've been familiar with for the last five years. What is new is that prices have reached a level that many buyers are now starting to find difficult to qualify for and to purchase. One example of this is that there were  are many condominiums available in the $350,000 to $450,000 range 2 months ago, and those have all pretty much disappeared. It’s now difficult to find a good 500 square foot condominium for $400,000.

Toronto real estate is becoming more difficult for first time buyers to afford. The result? First time buyers will have to go further away from the city in order to find the home that they're looking for, at a price they can afford!

Markets such as Barrie, Oshawa, Brock, are a great place to invest or to buy a home. They are nice mature communities relatively close to the city and the rents are similar to Toronto without the huge capital investment.

No, there's not going to be a downturn. No, the bubble will not burst, (the demand is just too strong) but for those people who cannot afford Toronto prices, it's time to look a little further out.

The key is to have a full-time real estate professional like me who is knowledgeable and will work hard to get you what you're looking for. Whether it’s Toronto or the outskirts give me a call and put my expertise to work for you.

If you know of someone thinking of buying or selling or if you're looking for a great investment property give me a call I'm never too busy for your referrals.

Have HAPPY HOLIDAYS!

Your Friend in Real Estate

Sam Wadhwa (Broker of Record)

Neelam Wadhwa (Sales Representative)

Re/Max Realtron Real Realty Team Brokerage


November 2016

November 2016

Dear Friend,

The Toronto real estate market continued its torrid pace with the sale of 9,768 homes. The largest annual rate of sales growth was in the condominium apartment market segment, primarily due to the affordability factors, as other home types prices continue to move out of the reach of some first time buyers.

The big news in October was the CBC’s Marketplace hidden camera expose of real estate agents. They found some agents would break the rules by offering unfair advantages to potential clients in an effort to secure both ends of a deal (double enders) meaning the same agent represents both the buyer and the seller.

This type of action is despicable. Not only is it unethical, but is unfair to other buyers who are blocked from buying the property and costs the seller many thousands of dollars. Houses that are sold overnight by the listing agent (double ended) are all suspect of this behaviour. If an agents says they double end more than 15% of their own listings, beware!

Ethics, honesty and integrity are critical in all aspects of life. If you are looking for someone to protect your interests and treat you like family, here I am!

While the average prices continue to rise, it’s still a good time to buy as rents have increased as well and that helps as an additional income source as well as makes for a great investment. Give me a call, I am never too busy to chat or for your referrals.

Have a great November

Your Friend in Real Estate

Sam Wadhwa & Neelam Wadhwa

Re/Max Realtron Real Realty Team Brokerage


October 2016

October 2016

Dear Friend,

September marked another huge month of sales as Toronto area realtors sold a record 9,902 homes. For the region as a whole, strong annual rates of sales growth were experienced for all major home types. The pace of detached sales growth was slower in the City of Toronto and the number of semi-detached sales was down compared to last year.

The average selling price YTD now stands at $721,750 with almost 90,000 homes sold through the Toronto Real estate Board.

The changes announced by the government on Federal mortgage lending guidelines and capital gains tax exemption rules area are aimed to try to control the rapid increase in prices. However it’s important to note that the upward pressure on home prices has been mainly due to lack of inventory, huge immigration and investment in Canada, a strong economy and low interest rates. While the new government changes may impact some people into a wait-and-see attitude I personally believe it’s not going to have a great impact on our market place and am encouraging my buyers to buy now.

All in all the market continues to be strong, rental rates are high with very little inventory and today is as good time as any to buy a house. If you or friend are in the market to get a bigger home or buy an investment property, give me a call and let me show you how I can help you with your real estate needs.

Have a great October!

Your friend in real estate.

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

Re/Max Realtron Real Realty Team Brokerage


February 2016

10th February 2016.

Dear Friend,
The weather in December and January was not the only thing that was unseasonably warm! The Toronto real estate market continued its hot pace with the sale of 4,672 residential transactions in January, up 8.2 % over January of 2015. The average price in January was $631,092, up 14.1% over January 2015’s average price of $552,925.
This upward trend will continue in 2016 as a recent polling conducted for TREB by Ipsos suggested that 12 % of GTA households were seriously considering the purchase of a home in 2016. Buying intentions are strong despite rising prices of homes. With low interest rates, home ownership continues to be seen as an affordable long-term investment.
Here are some reasons why Canada is so popular an investment opportunity for so many foreign investors.

# Expensive in world         City              Cost of  1300 Apt per sq. Ft     Rental of 1300 sq. Ft apt
 #  2                                    London               $3,227  US Dollars                 $11,089    US Dollars
#  3                                     Hong Kong         $2,132   US Dollars                $ 6,431     US Dollars 
#  4                                     New York            $1,728   US Dollars                $ 7,225     US Dollars
#  6                                     Moscow              $1,497   US Dollars                $ 5,158     US Dollars
#  7                                     Singapore           $1,425   US Dollars                $ 4,332     US Dollars
# 10                                    Mumbai              $1,070   US Dollars                 $ 2,540     US Dollars
# 12                                    Tel Aviv              $950      US Dollars                 $ 2,318     US Dollars
# 15                                    Toronto              $775      US Dollars                  $ 3,047     US Dollars

http://www.globalpropertyguide.com/most-expensive-cities#most-expensive-cities
I know the above are “averages”. Prices are dependent on location, condition etc. However this gives you a general idea why so many foreign investors are purchasing in Canada. We are a BARGAIN!

If you or a friend are considering purchasing an investment property, (yes, 2016 is a great time) please give me a call, there are some great opportunities in Toronto!

Have a great February!
Your Friend in Real Estate.

Neelam Wadhwa & Sam Wadhwa