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

 

 

 


April, 2018

Dear Friend,

 

Toronto Real Estate Board members reported 7,228 residential sales in March  and a listing stock of 15,971 listings as we head into Toronto’s Spring Market. While the numbers are lower than the same period last year, they are still indicative of a healthy real estate market. The low listing inventory compared to the number of sales, indicates a Seller’s market, and the average list to sale price ratio of 99% (Seller’s sold at 99% of list price) in an average of 24 days is further proof of that.

No news is good news as they say. The economy is strong and stable, immigration to the GTA continues, investment into Canada continues from all parts of the globe and interest rates are still low. All in all, sales continue to take place, and April should see approximately 9,500 homes sold on the Toronto Real Estate Board’s MLS system.

Condominium apartment sales are still the hottest part of the real estate market, and they continue to be in great demand with the resulting price increases. That’s not going to change, as they are the lowest price point that buyers can afford in Toronto. With rents on the increase, investors continue to buy apartments for the rental return and long term appreciation.

As the weather changes and buyers start coming out in full force as they usually do every Spring, I am strongly recommending to my clients to buy now before the multiple offers come back in full swing. With only two listings for every sale, multiple offers are occurring every day, and it’s only going to be more competitive for buyers as the weather warms up. If you are considering, do it now!

If you have any questions, please give me a call, I would love to chat.Have a great April,

 

Your Friend in Real Estate.

 

PS. I am never too busy for your referrals!

Sam Wadhwa

Broker Of Record

Neelam Wadhwa

Sales Representative


March, 2018

Dear friend,

I must say, I was pleasantly surprised to see that the Toronto Real Estate Board members sold 5,175 homes last month. While it is less than last year, the first quarter of 2017 was a record time, I expected sales to be less than they actually were.  A further indication of the demand for homes was the fact that with over 1,200 homes for sale, my company booked over 13,000 appointments and sold over 600 homes! Without question, some people lack confidence in the marketplace. We have sellers who believe prices will increase by May and we have buyers who believe prices will drop by May. They both can’t be right. The truth of it is that Toronto is a vibrant city that is growing and has a shortage of residential property. The proof is that rents, already at all-time highs, continue to increase. (Basement apartments in Newmarket are renting for $1400 per month!)

Toronto prices will continue to keep increasing as there is a huge immigration into the city and a lack of new accommodation. This lull that we’re experiencing now is temporary and I think you’ll find that by April/May prices will start to rise again and multiple offers while still occurring, will have even more buyers bidding on properties. Buyers will be wishing that they had committed in the first quarter of the year, and Sellers will also be unhappy as they will get more for their homes but end up paying even more for their new purchases.

There is little benefit to waiting! If you’re thinking of buying or selling or know a friend who is, I must strongly recommend that you purchase as soon as possible, while the demand is less. (We’re still getting multiple offers on will price properties!). In the first two months of 2018 properties were selling at 98% of asking price, another indication of the demand for homes.

I know it sounds self-serving and if you’re not sure whether to buy or not let me share with you the information I have so you can determine the state of the market for yourself. Give me a call and don’t forget, you do have a friend in real estate!

 

Have a great month

 

Your Friend in Real Estate


February 2018

 

Dear Friend,

 

I must admit, I was pleasantly surprised to see that the Toronto Real Estate Board  reported 4,019 residential transactions in January 2018. Honestly, I thought the number would be much lower due to many buyers purchasing in December to take advantage of the old mortgage qualifying rules.

 This just shows how strong the demand for housing is, and the price drop that buyers have been hoping for does not appear to be coming given the strong demand. The average price dropped in January, but not because prices dropped, but due to the fact that almost half of the sales in January were condominiums and townhouses, a lower average price. In fact, it turns out that the market is very strong, with 1 sale per 3 listings on average, and well-priced property selling quickly with multiple offers.

 The statistics for the first 3 months of 2018 will be down compared to the record-setting numbers experienced a year ago, but don’t be fooled. As we progress into 2018, the numbers will sound better and buyers will get excited and jump into the market, perhaps raising prices higher than the 5%-6% I am predicting! The pace of home sales will also pick up, as the psychological impact of the Fair Housing Plan starts to wane and home buyers find their footing relative to the new stress test for mortgage approvals through federally regulated lenders.

 The condominium market continues to be strong, and we will see continued price increases in that area for a number of reasons. One, is that that is the price range that many can afford, two, we have a huge shortage of rental units and condominiums fill that demand, and three, rental rates continue to increase, making condos an even better investment.

 While it will be another strong year for real estate in Toronto, good agents, those experienced, knowledgeable and committed to looking after their clients best interests will do better for their clients. That’s where I come in. If you know of someone who is looking to buy or sell, please give me a call, I promise to take of them extra well!

  

Have a great February!

  

Your Friend in Real Estate.

 

 


January 2018

 

Dear Friend,

 

2017 was an interesting year for the Toronto real estate market.

It was a rollercoaster ride of activity, the highs and lows brought about by government’s decisions to try to slow down home prices increases utilising negative policy changes.

Record sales in the first quarter of the year were followed by a decline in demand in the spring and summer, as home buyers adopted a wait and see attitude towards purchasing as the Ontario Fair Housing Plan (FHP) was announced. Research later showed that while foreign home buying was not a major driver of sales and prices in the GTA, the FHP, which included a foreign buyer tax, had a marked psychological impact on the marketplace. Government policy continued to influence consumer behavior as changes to federal mortgage lending guidelines were announced late summer, and buyers jumped into the market to buy before the guidelines took effect in January.

2017 ended with over 92,000 homes sold and average prices rising to $822,681, up 12.7% over 2016. The condominium market saw the highest increase in prices, followed by semidetached homes as affordability continued to be the major factor influencing buyer decisions.

All of the current market conditions have been brought about by demand, as population growth outstripped the growth of supply. If the government would shorten the length of time it took to bring new land and new homes to the market (currently years), (a positive policy, as opposed to negative policies of increased taxation and limitation) prices would stabilise.

I believe that the first 3 month of 2018 will be less active than usual due to a number of factors. The first one is that the negative press of the comparison to last year, (best in history) vs this year, will put the average person into a waiting mode to see what happens to prices. The second factor is that many buyers who would have bought in the first quarter, bought in the fall, before the new mortgage changes took effect. And lastly, it’s COLD and less buyers will be out. That means the first 3 months will be a great time to buy, before everyone jumps back into the market April and May.

It might sound self-serving of me to say this, but consider that none of the factors that created this market have changed. Demand, economy, immigration, low interest rates, have not changed. Prices in Toronto will only drop long term if the population shrinks, and I do not see that happening.

Some people wait nd see what happens, others make things happen. If you are looking to buy or invest, I believe now is the time!

Give me a call, I’ll be happy to put my knowledge and expertise to work for you!

 

Stay warm, its cold out there!

 

Your Friend in Real Estate


December, 2017

 Dear Friend,

Well, though I hate to admit it, I was wrong! I predicted 6,500 homes sold in November when in fact there were 7,374, making November 2017 one of the best Novembers in history. The reason for this is simple, the government announced changes to the mortgage qualifying rules commencing January 1 2018, and a lot of buyers jumped into the market to make sure that they qualified under the old criteria. This resulted in stronger than usual sales and that trend will continue in December.

Some interesting facts; while the number of listings sits at approximately 18,200, a balanced market, (4 listing for every sale), and home prices are relatively stable, the condominium market is red hot! Prices on condominium apartments are up 22 % in 2017, with approximately 1/3 of all the sales on the Toronto real estate board being condominiums. This is a natural trend as many people can no longer qualify for single homes and have turned to condominiums. Condominiums have also become great investment opportunities, as rents have increased significantly and Toronto continues to grow.

If you’re thinking of buying or selling, as long as you do it in the same marketplace there is no downside. Warren Buffet proved the benefit of buying a good product and holding. I found that over the years my clients never made a mistake buying, the mistake was always selling.

If you know somebody considering buying, have them call me as soon as possible. With the changes in the mortgage qualifications they should do it in 2017 vs 2018.

 It’s been a wonderful warm fall, best wishes for the holiday season and throughout 2018.

 Your Friend in Real Estate


November, 2017

Dear Friend,

 

Historically October is the busiest month of the Fall market and once again this year was no exception. October’s 7,118 sales represented an above-average increase between September and October of almost 12%, a more pronounced increase than usual. That points to stronger Fall market conditions, not unexpected given the government’s announcement of stricter mortgage qualifications starting January 1 2018.

 

The change in mortgage qualifications lowers the amount of mortgage that buyers will be able to get, thus eroding their maximum purchase price.

 

This has created an urgency for buyers to buy before the January 1 deadline, hence the increase in sales activity. Those buyers that would have normally bought in January/February are buying now, and I expect lower than normal sales at the start of the year. Sales at the start of 2018 will be impacted as well as some people will wait to see what happens. (Some of my Sellers are waiting for the Spring Market as they believe prices will go up and some buyers are waiting for the Spring market because they believe the prices will go down!)

 

Your home is not a business investment and should not be treated as one. If you buy and sell in the same market there’s little impact on prices going up or down or market conditions changing. If you’re considering selling and not buying then I would strongly suggest you consider doing it right now as the demand is strong. If you are a buyer, now is the time to buy because of the mortgage changes.

 

While home sale activity in the Toronto area goes up and down depending on confidence in the real estate market, none of the factors affecting Toronto prices have changed. We are in a boom economy, low interest rates, huge immigration, and ultimately Toronto is cheap compared to other cities. There is no doubt that prices will continue to rise over time.

 

While this is an overview of the market, each situation is different and based on your needs and circumstances I may recommend a different strategy for you. Give me a call, let’s talk. I want to give you the best advice possible and make sure that you’re well looked after!

 

After all, you do have a friend in real estate!

 

Sam Wadhwa Broker Of Record

Neelam Wadhwa Sales Representative

 

 

Your friend in real estate.

 

(PS I am never too busy for your referrals!)