Blog posts labelled: sellers : page 7

Essential Analytics - September 2021

Overview of Greater Toronto Area housing market activity during August 2021

Is the Toronto Housing Market Currently in a Bubble?

The housing bubble in Canada has been a topic of concern for so long that it even has its own Wikipedia page, and the Toronto housing market is no exception to this. While there is a lot of good information out there, there is also a lot of hysteria. Ultimately, nobody can predict the future, but with experts and investors pouring huge amounts of time and effort into understanding what is going on, there are some questions that we can answer.

Is the Toronto Housing Market Currently in a Bubble?

The Basic Facts

At a glance, the statistics on property prices in Toronto are pretty astonishing: prices have risen by an average of ten percent a year over the last five years, including their 18.1% rise this year. In other words, a condo that cost $620,921 in 2016 would now be valued at $1,000,000. Little wonder that it now takes an average of 27 years of savings to buy a house there.

What Are the Experts Saying?

Most major institutions and commentators agree: this is a bubble. In May, the Bank of Canada named the housing bubble as the bank's main concern regarding the Canadian economy, pointing particularly to Toronto and the Greater Toronto Area (GTA). Likewise, Swiss Bank UBS rated Toronto among the three biggest housing bubbles in the world in October 2020.

Why Do They Think This?

With the aforementioned incredible growth of house prices in Toronto, it was inevitable that the stability of this growth should be questioned. However, the conditions under which this growth has taken place are what really concern the experts.

Fundamental Market Forces Analysis

It is often argued that a bubble can be identified when changes in fundamental market forces cannot explain a price rise. In the case of Toronto, an analysis of market fundamentals suggests that prices should have risen by 12% since 2014 when in reality they rose by 93%. Given the vast difference between market fundamentals and reality, it seems likely that the reason for the increase is a bubble.

Supply and Demand

One reason why prices might rise so suddenly is demand massively overwhelming supply, causing prices to rise for what little is available. However, over the past six years 230,210 "dwelling units" have been constructed in Toronto, so it is clear that supply is not an issue. It is therefore reasonable to assume that prices are rising because people expect prices to rise further, and are therefore hoping to sell later for a higher price.

That is a classic symptom of a bubble: a conclusion strengthened by the fact that, while house prices rose in the GTA as a whole, the average price of a house in Toronto decreased from May to August. In other words, Toronto was too expensive for most. When that happens, the prices are almost certain to go back down in order to be affordable.

Does Anyone Disagree?

Very few people. Those that do so point to the continued demand in the area and attribute this to Toronto's growing reputation as a tech hub, accelerated by the arrival of Alphabet's (Google's sister company) Sidewalk Labs. They also suggest that red-tape affecting new developers causes a lack of supply relative to demand. However, in the face of the evidence discussed so far, it is not surprising that this opinion is not commonly held.

To discuss buying or selling in Toronto, call Nancy at 416-985-1486 or Dave at 416-894-4079, or visit GTASelling.com.

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Essential Analytics - August 2021

Overview of Greater Toronto Area housing market activity during July 2021.

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Essential Analytics - July 2021

Overview of Greater Toronto Area housing market activity during June 2021.

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Toronto Real Estate Market: Is It a Buyer's or Seller's Market Right Now?

Buying or selling a home is always an exciting yet stressful process, but it can feel very different depending on the current market conditions. Currently, the Toronto real estate market is tilted towards sellers, but this doesn't mean that there aren't any great deals out there. No matter if you'd like to sell or purchase your home, a competent real estate agent can help you to make the best decision possible.

Is the Toronto Real Estate Market a Buyer's or Seller's Market?

In 2021, the real estate market in the Toronto area is still a seller's market, with relatively few listings available and high demand. It is estimated that the price of properties will increase by around 6% throughout the year as people continue to immigrate to Canada. The luxury market remains intact despite the Coronavirus pandemic and the fact that many people no longer need to live in the city centre.

Condominiums are seeing the greatest rise in prices, although some people are selling their downtown apartments and moving further out of the city. Many industry professionals estimate that the number of days properties remain on the market is likely to either remain the same or decrease further.

Tips for Sellers

If you're looking to sell your home in the Toronto area, this is good news for you. You are likely to get a great price, and you won't have to wait long to find the ideal buyer for your property. Despite this, the selling process can be taxing, and you might benefit from professional help. By hiring real estate agents with lots of experience in the local area, you can benefit from all their knowledge without spending hours researching the market.

You can gain access to the most up-to-date pricing strategies, so you'll sell your house for the best possible price. Even more importantly, you won't have to do your own marketing, which is often one of the most challenging parts of the process. Your agent already has a large network of potential buyers in place, and they also have access to listing services and databases you otherwise wouldn't be able to make use of.

Tips for Buyers

Buyers have a harder time than sellers at the moment because they're competing against many other people who also want to move to the area, but that doesn't mean that there aren't great deals available. No matter what kind of property you're looking for, you'll be able to find your dream home if you remain persistent. Because of the current challenges in the market, it's even more important for buyers to have the assistance of professional real estate agents.

From determining what you want to pre-qualifying for a loan to finding your dream home, a great professional can help you with every step of the buying process. In addition to making your purchase easy for you, your agent will also negotiate on your behalf and double-check that everything is well with the inspection and the property. This can save you a lot of hassle later on.

Although the real estate market in Toronto is currently in favour of sellers, buyers can also get a good deal by working with experienced real estate agents. Get in touch with us at GTA Selling in Toronto, Ontario to find out more about how we can make the process easy and successful for you.

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Essential Analytics - June 2021

Overview of Greater Toronto Area housing market activity during May 2021.

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Essential Analytics - May 2021

Overview of Greater Toronto Area housing market activity during April 2021.

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PROPERTY CRUSH

Having lived in Thorncrest Village for 22 years we are partial to this property. It's rare to find a prime building lot 100x180 in Princess Anne Manor. We think it's a bit pricey but, who knows in this market!

It's close to prime schools and enjoys a private clubhouse with tennis, swimming and social events.

Call us to be one of the first to see this property.

10 Pheasant Lane - Toronto

List: $3,750,000

Listed by: Ricky Ristic, Salesperson, Royal LePage Signature Realty, Brokerage

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Toronto Real Estate in 2021: Is Now a Good Time to Refinance?

If you are considering refinancing, there are a number of things that will impact your decision. Mortgage payments are one of most people's largest monthly expenses, and refinancing can make these more manageable. Refinancing can also be beneficial if you are financially stable but worry about the future. The following information will help you determine if now is a good time for you to refinance your Toronto real estate.

Lower Monthly Payments

If your primary concern is that you will not be able to sustain your current mortgage payments, refinancing can help you adjust the amount to a lower monthly payment. This would mean increasing the length of your loan term, and it will take you longer to pay it off completely. However, there may be lower interest rates available now that you can take advantage of in order to save money along the way.

Improved Credit Score

Monthly payments, though difficult to maintain, provide a benefit as you go. In paying your mortgage on time every month, you are improving your credit score. Your credit score is always taken into consideration when a loan is being refinanced. If you have been diligent about paying your mortgage in the past, you may already qualify for a lower interest rate.

Stable Fixed Rates

An adjustable-rate mortgage might have required lower payments at the beginning of the loan and therefore appeared to be a better choice. However, if you discover that interest rates are lower now, securing a fixed-rate mortgage will allow you to have a predictable monthly payment. This can be a relief when the economy is going through times of uncertainty.

Equity for Immediate Expenses

If you have been paying a mortgage for several years, you have built up equity. The two ways you are able to use this equity as money now are by taking out a home equity loan or cash-out refinancing.

A home equity loan is a second loan that allows you to borrow back some of the money that you previously paid towards your home. It does not affect your current mortgage but is paid back as an additional monthly payment. Cash-out refinancing is different because it takes your mortgage and replaces it with a larger loan. This amount will be used to first pay off your original mortgage and then pay you the rest in cash.

Increase Equity in Toronto Real Estate

Real estate in Toronto is a valuable commodity and will be for the foreseeable future. Refinancing to build equity faster can be beneficial to your economic security in the long haul. By choosing to refinance in order to make larger monthly payments, you will reduce the number of years it will take to pay off your loan. Look for an opportunity to secure a lower interest rate and start building the equity you have in real estate faster while saving yourself money in the long run.

Refinancing is always a big decision, but it holds the potential for benefits in the immediate future and further down the road. Mortgage professionals are available for further assistance, and GTA Selling can help you with a referral. Call Nancy at 416-985-1486 or Dave at 416-894-4079 at GTASelling.com.

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FAKE ESTATE

Welcome too my rant! Tune in for my occasional take on what’s going on in the world of real estate and beyond. We seem to be living in a surreal world of make believe.

In real estate we stage homes to sell. Sellers believe staging helps sell their homes and buyers get a better vibe about a staged home. This is true to a point. We encourage our buyers to see beyond the neutral greys and Home Sense appeal that they are buying into because that is not what they are actually purchasing. They are purchasing a neighbourhood, number of bedrooms or bathrooms, school district, a garage and most importantly these days, a home office. That Home Sense decor will not be there when buyers move in! And, a wall can be painted!

Our sellers are advised to do 3 things 1) declutter 2) declutter 3) declutter. A home free of clutter gives potential buyers their first impression of the living space that is a very important feature of any home. Once decluttered, we can stage areas we feel need an added touch, be it a piece of art, a floor lamp or a pop of colour with some flowers in order to showcase it’s finest features.

We deal with it all and we’ve heard it all. We could write a book! We recently showed a home to clients who commented, “it hasn’t been painted”. It had been recently painted (I could smell the fresh paint through my mask). It just hadn’t been painted Benjamin Moore silver satin grey!

I long for the buyers who appreciate something different, something with charm and character. Admittedly, I love the modern clean lines of newer homes but, at times I do feel like screaming, “put down that decor magazine, think about what YOU like and be brave enough to buy it”!

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