Toronto Real Estate Market Report: December 2014

Following is TREB’s market report for December 2014:

Toronto Real Estate Board President Paul Etherington announced that Greater Toronto REALTORS® reported 92,867 residential sales through the TorontoMLS system in 2014, including 4,446 in December.

The calendar year 2014 sales result represented a 6.7 per cent increase over the 2013 sales figure of 87,049 and was just short of the record set in 2007.

"TREB's 2014 sales figures are a testament to the importance Greater Toronto Area households continue to place on home ownership.

GTA households realize that home purchases have been a quality long-term investment.

While home prices certainly increased substantially in 2014, the purchase of an average priced home remained affordable, in terms of the average household's ability to comfortably cover their monthly mortgage payments," said Mr. Etherington.

"Even with a constrained supply of homes for sale in many parts of the Greater Toronto Area, buyers continued to get deals done last month.

Households remain upbeat about home ownership because monthly mortgage payments remain affordable relative to accepted lending standards.

This is coupled with the fact that housing has proven to be a quality long-term investment," stated Mr. Etherington.

The average selling price continued to grow on a year-over-year basis in calendar year 2014, with an 8.4 per cent increase over calendar year 2013 to $566,726.

This included a seven per cent increase in the December 2014 average selling price to $556,602.

Throughout 2014, annual increases in the average selling price and the MLS® HPI Composite Benchmark were consistently reported on a monthly basis for most market segments, from detached homes through to condominium apartments.

"The strong price growth we experienced in 2014 can be explained with two words: listings shortage.

The constrained supply of listings was especially evident for low-rise home types like singles, semis and town houses.

The number of households looking to purchase these home types increased, while the number of homes from which they could choose decreased.

This situation resulted in more competition between buyers and more aggressive offers," said Jason Mercer, TREB's Director of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: November 2014 Statistics

Following is TREB’s market report for November 2014:

Toronto Real Estate Board President Paul Etherington announced that Greater Toronto REALTORS® reported 6,519 residential transactions through the TorontoMLS system in November 2014.

This result was up by 2.6 per cent compared to 6,354 sales reported in November 2013.

Through the first 11 months of 2014, total sales amounted to 88,462 - up 6.6 per cent compared to the same period in 2013.

While the trend of year-over-year sales growth continued, the supply of listings remained constrained, with active listings at the end of November down in comparison to last year.

"Even with a constrained supply of homes for sale in many parts of the Greater Toronto Area, buyers continued to get deals done last month.

Households remain upbeat about home ownership because monthly mortgage payments remain affordable relative to accepted lending standards.

This is coupled with the fact that housing has proven to be a quality long-term investment," stated Mr. Etherington.

The average selling price for November transactions was up by 7.4 per cent year-over-year to $577,936.

The year-to-date average price was up by 8.4 per cent to $567,198.

The MLS(R) Home Price Index Composite Benchmark price for November was up by 7.7 per cent compared to a year earlier.

"The robust average price growth experienced throughout 2014 has been fundamentally sound, with demand high relative to supply.

Strong competition between buyers has exerted upward pressure on selling prices.

Barring a substantial shift in the relationship between sales and listings in the GTA, price growth is expected to continue through 2015," said Jason Mercer, TREB's Director of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

What Happens When A Seller Receives Zero Offers?

Back in August I wrote about the sellers who received 7 competing offers on offer-night, and said "no" to all of them (read it here). (Update: That house didn't sell and is now off the market.)

This month I'd like to take a look at what happens when a seller receives no offers on offer-night...

I was recently out with some clients, viewing houses for sale in the west-end of the city.

We saw six houses in total, and each one had a scheduled offer-night for the following week.

Four of those houses ended up selling on offer-night (with multiple-offers, and sale prices well above what they were listed at).

The other two houses didn't sell.

In fact, those two houses didn't receive any offers at all!

So, what options does a seller have when they receive zero offers on offer-night?

Generally, a seller will respond in one of three ways:

Response #1 - Hold Your Ground

In this case, the seller believes that the property is priced where it should be. Despite the fact that they received no offers, they're going to hold their ground and keep the list price where it is.

Response #2 - Raise The Price

Here, the seller believes that the property was underpriced initially (as part of a strategy to create a multiple-offer scenario, and an above-list sale price).

The strategy didn't pan-out on offer-night, so they terminate the listing on mls and re-list the next day at a price that's more in-line with what they're hoping to sell for.

Response #3 - Lower The Price

Here, the seller believes that receiving no offers means the property is over-priced.

They don't want to waste any more time on the market, so they respond swiftly with a reduction in price.

Truthfully, we don't see this third response very often. A seller will usually hold their ground for a few more weeks before considering a price reduction.

Response #2 (raising the price) is the one we see most often. But it doesn't always work (take a look at the greedy sellers from my August blog post as an example).

Keep in mind, these are only the three most common seller responses. There are actually others as well.

I've even seen listings receive zero offers on offer-night, then turn around and try the exact same strategy all over again: re-list the next day, at the same price, with a new offer-night...

...and it worked!

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: September 2014 Statistics

Following is TREB’s market report for September 2014:

Toronto Real Estate Board President Paul Etherington announced that there were 8,051 transactions reported through the TorontoMLS system in September 2014.

This result represented a 10.9 per cent increase compared to September 2013.

On a year-to-date basis through the first three quarters of the year, sales were up by 6.9 per cent annually to 73,465.

"Despite a persistent shortage of listings in some market segments, we have experienced strong growth in sales though the first nine months of 2014.

This is evidence that GTA households remain upbeat about purchasing a home.

The majority of home buyers purchase a home using a mortgage.

The share of the average household's income dedicated to their mortgage payment remains affordable, which is why buyer interest has remained solid," said Mr. Etherington.

The average selling price for September 2014 transactions was $573,676 – up by 7.7 per cent compared to the same period in 2013.

Average year-over-year price growth was strongest in the City of Toronto, both for low-rise home types like detached and semi-detached houses and for condominium apartments.

The average selling price year-to-date was $563,813 – up 8.5 per cent compared to the first nine months of 2013.

"If the current pace of sales growth remains in place, we could be flirting with a new record for residential sales reported by TREB Members this year.

On the pricing front, the multitude of willing buyers in the marketplace coupled with the short supply of listings will continue to translate into very strong annual rates of price growth in the fourth quarter," said Jason Mercer, TREB's Director of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: August 2014 Statistics

Following is TREB’s market report for August 2014:

Toronto Real Estate Board President Paul Etherington reported 7,600 sales through the TorontoMLS system in August 2014.

This result was up by 2.8 per cent compared to 7,391 transactions reported in August 2013.

Year-to-date sales through the end of August amounted to 65,454, which represented an increase of 6.5 per cent compared to the same period in 2013.

“The last full month of summer ended on a high note. As we look toward the fall market, I expect that demand for ownership housing will remain strong.

Home buyers will continue to benefit from a diversity of affordable home ownership opportunities throughout the GTA.

The fact that sales were up for all major home types in August suggests that first-time buyers and existing home owners remain very active in today’s marketplace,” said Mr. Etherington.

The average selling price in August 2014 was $546,303 – up 8.9 per cent in comparison to the average of $501,677 reported in August 2013.

The year-to-date average price through August was $562,504, which represented an increase of 8.5 per cent in comparison to the same period in 2013.

“The number of listings in August was down in comparison to last year, while the number of sales increased. This means that sellers’ market conditions remained in place with a lot of competition between buyers.

This is why we continued to see strong price growth last month.

Looking forward, if sales growth continues to outstrip listings growth, the average selling price should continue to increase on a year-over-year basis,” said Jason Mercer, TREB’s Director of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

7 Offers... And None Of Them Were Good Enough!

What happens when a seller receives 7 competing offers on their house, only to reject them all and then relist the next day at a much higher price?

Is this a smart move on the seller's part?

Or is it a stupid one?

Well, it's certainly a risky move; one that can backfire and leave the seller kicking themselves for being greedy...

There's a house for sale right now in the east-end of the city that's been on the market for almost 100 days.

The Toronto market for freehold homes has been exceptionally hot this year, and 100 days is a helluva long time for any house to sit unsold.

There must be something wrong with the house then, right?

Nope. A few layout quibbles aside, it's in great shape, in a great location, and it shows very well.

The problem is that the sellers played pricing games early on when the house was first listed for sale, and now it's priced too high & they're struggling to find a buyer.

The house was first listed back in the spring for almost $200,000 less than where it's priced now.

There was a hold-back on offers, and the sellers received 7 competing bids on "offer-night".

7 offers!

Most sellers in that position would realize their good fortune, and take the money & run.

Not these guys.

From what I hear, the listing agent was quite upset with his clients for choosing to reject all 7 offers and essentially squander the momentum that had been built-up over the week leading up to offer-night.

It sounds like the listing agent knew it would be next to impossible generate that much interest in the property again.

And he was right.

Here we are, almost 100 days later, $200,000 higher, and the house is still for sale...

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: July 2014 Statistics

Following is TREB’s market report for July 2014.

Toronto Real Estate Board President Paul Etherington reported strong year-over-year growth for July 2014 sales and the average selling price.

Sales reported by TREB Members through the TorontoMLS system were up by 10 per cent to 9,198.

This was the second-best July sales result on record.

“The second half of 2014 started where the first half left off, with very strong demand for the diversity of affordable home ownership options in the Greater Toronto Area.

Sales were up strongly for most major home types and market conditions actually tightened, with sales growth outpacing listings growth.

The result was average price growth well-above the rate of inflation,” said Mr. Etherington.

The average selling price for July 2014 sales was $550,700 – up by 7.5 per cent compared to July 2013.

The strongest rate of price growth was reported for the detached market segment in the City of Toronto, with a year-over-year change of 11 per cent.

The better-supplied condominium apartment segment experienced average price growth of 5.3 per cent for the GTA as a whole.

“Strong demand for ownership housing will underpin robust average price increases for the remainder of 2014.

In fact, the pace of price growth that we have experienced over the past year will continue until growth in listings outpaces growth in sales for a sustained period of time,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: June 2014 Statistics

Following is TREB’s market report for June 2014.

Stepping into his role as President of the Toronto Real Estate Board, Paul Etherington announced a strong increase in residential sales reported through the TorontoMLS system in June.

Sales were up by 15.4 per cent year-over-year to 10,180 transactions.

New listings were also up compared to the same period in 2013, but by a lesser annual rate.

This means that competition between buyers increased in June.

“Home buyers in the Greater Toronto Area are confident in their ability to purchase and affordably pay for a home.

Generally speaking, buyers feel that ownership housing will be a good investment over the long term.

This is why we continued to see increases in home sales in June for all major home types across the GTA.

Given the degree of pent-up demand in the market today, I would expect to see sales growth continue through the summer,” said Mr. Etherington.

The average selling price for June transactions was $568,953, representing an increase of 7.4 per cent compared to June 2013.

The strongest price increase for the GTA as a whole was for semi-detached houses, with the average price up by 9.7 per cent year-over-year.

The pace of price growth for condominium apartments was also strong at 6.8 per cent.

“With less than two months of inventory in many parts of the GTA, it makes sense that we continued to experience very strong price growth in June.

This is especially the case for low-rise home types like singles, semis and townhouses.

Strong price growth for these home types will continue through the remainder of 2014.

Despite higher inventory levels, the condominium apartment market segment has benefitted from enough buyer interest to result in above-inflation price growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

You Get What You Pay For

There are companies out there that specialize in sign installations for real estate agents.

For a fee they will pick up, deliver & plant your "For Sale" sign in the ground.

I generally like to take a more hands-on approach; I put my signs in the ground myself!

I guess I see it as an excuse to get away from the computer and breath some fresh air.

Ponying Up

Before heading out to install a sign on a recent listing, I realized that I'd misplaced my hammer and needed a new one.

I popped into the hardware store at Ossington & Dundas, took a look at what they had and saw that it came down to two options: the cheaper (smaller) one or the more expensive (larger) one.

I decided to pony up and get the more expensive hammer.

Once I got out to the house I was glad I'd spent the extra money.

It was cold, it was windy, it was raining... and even with the more expensive hammer it took about twenty whacks to get the frame into the ground.

If I'd bought the cheaper hammer I'd probably still be swinging.

I didn't cheap out though.

And I got better results.

Cheaping Out

It was only after I tried to hang the sign that I realized I was out of zip ties and my only option was the dollar store around the corner.

Of course, the only zip ties they had were cheap ones.

It took me almost twenty minutes to hang the sign because 4 out of every 5 zip ties either broke or came loose.

They were cheap pieces of crap and I ended up wasting more time & money than if I'd bought better zip ties to start with.

Discount vs Full Service

It occurred to me that the above story serves as a great analogy when talking about discount realtors versus full service realtors.

There are realtors out there who advertise that they'll list your home at a discounted rate.

We get their postcards in our mail all the time.

And then there are full-service realtors (like myself and the majority of my colleagues).

While I think it's great that sellers have a choice, I also think they need to understand that these options often yield different results.

Real estate is no different than everyday life; you usually get what you pay for.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: April 2014 Statistics

Following is TREB’s market report for April 2014.  

Toronto Real Estate Board President Dianne Usher announced that during April – the first full month of spring – Greater Toronto REALTORS® reported a 1.8 per cent year-over-year increase in sales through the TorontoMLS system.

Total April 2014 sales amounted to 9,706, compared to 9,535 transactions in April 2013.

“April marked the beginning of the spring market, during which time we generally see the highest monthly sales totals in a given year.

Despite the persistent shortage of listings, a substantial number of GTA residents were able to come to terms on a home that met their needs.

However, sales levels would have been higher, but for the lack of supply,” said Ms. Usher.

“A number of factors underlie the constrained supply of listings. Studies and polling suggest that the additional upfront land transfer tax in the City of Toronto has prompted some households to stay put and renovate rather than list their home and move.

In the broader GTA context, above trend home sales in the years leading up to the recession have meant that many households who purchased during this period simply aren’t ready to move again,” continued Ms. Usher.

The average selling price for April 2014 sales was $577,898 – up by 10.1 per cent compared to the April 2013 average of $524,868.

The MLS® Home Price Index (HPI) Composite Benchmark was up by seven per cent year-over-year.

The MLS® HPI strips away price fluctuations resulting from a change in the mix of home types sold from one period to the next.

“Price growth for the GTA as a whole was driven by the single-detached, semi-detached and townhouse market segments in the City of Toronto.

So far this year, there has been no relief on the listings front for these home types in many neighbourhoods in Toronto and surrounding regions.

Until we see a marked and sustained increase in listings, we should expect to see the annual rate of price growth above the long-term norm,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Should You List Your Home For Sale Before A Long Weekend?

I've mentioned in previous blog posts that the spring market shifts into its highest gear right after the Easter long weekend (read those posts here and here).

Easter also gets the ball rolling on a series of long weekends that serve as sign-posts throughout the spring and summer real estate markets.

There are 5 of these weekends in total: Easter, Victoria Day, Canada Day, August long weekend and Labour Day in early September.

On any given one of these long weekends, a portion of the real estate market (buyers, sellers and/or realtors) is going to be out of town and unable to view properties.

Listing right before one of these long weekends means that you're potentially missing out on the full pool of prospective buyers.

If given a choice, I generally advise my clients to wait another week and list on the Tuesday/Wednesday after a long weekend.

This way, we’ll (theoretically) stand a better chance at exposing the property to a greater number of people.

And market exposure is the name of the game when you're selling your property!

Does that mean I've never listed a client's home for sale right before a long weekend?

Of course not!

In fact, I have an upcoming loft listing that we may put on the market just before the Victoria Day weekend...

So it's certainly not a hard-and-fast rule.

One could actually argue that a long weekend is an excellent time to have your home on the market.

Looking back at this past Easter weekend for example, a bunch of great homes came on the market and sold with multiple-offers & above-asking sale prices.

It's possible that the long weekend allowed some buyers that extra bit of down-time they needed to really focus on their home search and put in a strong offer.

I will say that long weekends certainly make for interesting open houses…

It’s always fun to see out-of-town parents tagging along and having their minds blown at what their kids are spending half-a-million dollars on.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: March 2014 Statistics

Following is TREB’s market report for March 2014.  

Toronto Real Estate Board President Dianne Usher announced that Greater Toronto Area REALTORS® reported strong year-over-year increases in TorontoMLS home sales and the average selling price in March 2014.

Home ownership affordability, backstopped by low borrowing costs, continued to be a key factor underlying this growth.

A total of 8,081 sales were reported in March 2014 – up by 7.2 per cent in comparison to March 2013.

Sales growth was much stronger in March compared to the first two months of the first quarter.

Sales for Q1 as a whole were up by three per cent compared to the first three months of 2013.

“Sales activity in the GTA accelerated last month.

Compared to last year, a greater number of buyers found affordable home ownership options, as evidenced by sales growth for all major home types.

Against this backdrop, however, overall inventory at the end of March remained lower than last year.

This means competition between buyers increased, which is why the average selling price continued to climb,” said Ms. Usher.

The average selling price for March 2014 sales was $557,684 – an increase of almost eight per cent compared to the average reported for March 2013.

The average price for the first quarter of 2014 was up by 8.5 per cent year-over-year.

“With borrowing costs remaining low, and in fact declining, strong home ownership demand will continue to butt up against a constrained supply of listings.

Strong price growth will be the result for the remainder of 2014.

If the pace of price growth experienced in the first quarter is sustained, TREB may revise its outlook for the average selling price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Would You Pay $1 Million Dollars For A Home... With No Parking?

"For a million bucks, we want a parking spot."

Those were the exact words my clients used.

Let's back up...

Last year I was working with some buyers who were looking to purchase a home in the Bloor West/High Park area.

A few weeks into our search a gorgeous house popped-up for sale.

It seemed to have everything these guys were looking for; it was fully detached, located on a great street, had a finished basement with remarkably high ceilings, an impressive master suite, a huge backyard...

It was missing one VERY important feature though... parking!

We explored the possibility of adding front-pad parking, but there was a massive tree in the yard that would've made it difficult (if not impossible).

And if it really was possible, wouldn't the sellers have added a parking spot during their time in the house?

There were just too many unknowns and the prospect of not having parking was a deal-breaker for my clients.

I don't blame them.

I told them flat out, "Even if you're okay with not having parking right now, it'll certainly affect the resale-abilty and hurt you when the time comes to sell."

Sure enough, the house sat on the market for 2 1/2 months and sold for almost $60,000 under the list price.

I guarantee you the lack of parking was to blame.

That's not to say there aren't buyers out there willing to spend a million bucks on a home without parking.

Last year in the Toronto area (north to Steeles, west to the 427, east to Scarborough) there were 78 sales above $1 million dollars with no parking.

Clearly, some buyers are okay with it.

Not many though.

For the 78 houses that sold without, there were 2884 house that sold with parking.

That's a 3% vs 97% split.

Thankfully, with odds like that you'll probably never be in the position my clients were last year... having to pass on an amazing million dollar home because it didn't have parking.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: February 2014 Statistics

Following is TREB’s market report for February 2014:  Toronto Real Estate Board President Dianne Usher announced that February 2014 home sales reported by Greater Toronto Area REALTORS® were up by 2.1 per cent compared to the same period last year.

Total February sales amounted to 5,731 compared to 5,613 last year.

“Despite the continuation of inclement weather in February, we did see a moderate uptick in sales activity last month.

The sales increase was largely driven by resale condominium apartments.

New listings of resale condominium apartments were up on a year-over-year basis, giving buyers ample choice.

This is in contrast to the listings situation for singles, semis and townhomes, where supply continued to be constrained.

Some would-be buyers had difficulty finding a home that met their needs,” said Ms. Usher.

“If we see renewed growth in listings for low-rise home types, the pace of sales growth will accelerate as we move through the year,” Ms. Usher continued.

The average selling price for February 2014 sales was up by 8.6 per cent to $553,193, compared to the average of $509,396 reported for February 2013.

The MLS® Home Price Index (HPI) Composite Benchmark was up by 7.3 per cent year-over-year.

“While the strong price growth experienced over the last year should prompt an improvement in the supply of listings, sellers’ market conditions will continue to prevail this year.

Home prices, on average, will trend upwards at a pace well-above the rate of inflation.

The impact of strong price growth on affordability will be mitigated by low borrowing costs,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

The House Sold So Fast We Didn't Even Get A Chance To See It!

Earlier this week a gorgeous house popped up for sale in the west end.

The house was so gorgeous in fact, that it sold in a day and for more than $200,000 above the list price!

I have some clients who wanted to go take a look, but never got the chance as they're out of town until the weekend.

I'm sure they weren't the only ones who missed out.

There are easily 40+ realtors and prospective buyers who never got to step foot in the place.

Not to mention all the activity that a couple of open houses would've generated.

So, the question has to be asked, "Did the sellers leave money on the table by not exposing the property to the entire market?"

It's hard to argue with $200k over the list price.

Still... What if everyone who's in the market right now actually had the opportunity to see the property and submit a competitive offer?

Could the sellers have gotten another $25,000? Another $50,000?

There's no way of knowing.

It's actually possible that the sellers did so well because hardly anyone got to see the house.

In other words, whoever paid $200,000 over the list price was obviously very motivated to snatch the property up before anyone else had the chance.

Either way, I think this is a great example of how setting a specific "offer date" can benefit both the sellers and the buyers.

People seem to think that holding-back offers only helps sellers, by generating multiple offers and a higher sale price, but the truth is it helps buyers too.

Just look at those clients that I mentioned earlier, the one who are out of town.

A hold-back on offers would've ensured they saw the house, but instead it was listed and sold before they had the opportunity.

Remember, a house that sells in one day is only seen by the small pool of buyers who are able to drop everything at a moment’s notice.

A house that sells on offer-night is seen by the entire pool of buyers.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: January 2014 Statistics

Following is TREB’s market report for January 2014:  Home ownership in the Greater Toronto Area remains affordable and there are many people looking to purchase a home.

In January, the number of homes listed for sale was down quite strongly compared to last year, which means that it was difficult for some buyers to find a home.

Greater Toronto Area REALTORS® reported 4,135 sales through the TorontoMLS system in January 2014.

This result was down by 2.2 per cent in comparison to January 2013.

New listings entered into the system were down over the same period by 16.6 per cent to 8,822.

“Looking forward, it is possible that strong price growth, and therefore an increase in home equity, will act as a trigger for more households to list their homes for sale.

This is especially the case for households whose life styles are changing, including those with an expanding family looking for a larger home or empty nesters looking to downsize,” said Dianne Usher, President, Toronto Real Estate Board.

The average selling price for January 2014 sales was $526,528 – up by more than nine per cent compared to $482,080 in January 2013.

“The pace of price growth will remain strong in 2014. Similar to last year, competition between buyers for singles, semis and town homes in the City of Toronto and surrounding regions will continue to exert upward pressure on selling prices.

At the same time, mortgage rates will remain near historic lows, so despite strong price growth, home ownership will remain affordable for the average household in the GTA,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: December 2013 Statistics

Following is TREB’s market report for December 2013:  Greater Toronto Area REALTORS® reported 4,078 residential transactions through the TorontoMLS system in December 2013 – up by almost 14 per cent compared to 3,582 sales reported in December 2012.

New listings entered into the TorontoMLS system were down by almost four per cent over the same period.

Total sales for calendar year 2013, at 87,111, were up by approximately two per cent compared to 85,496 transactions in calendar year 2012.

“After a slow start to the year, sales growth accelerated to a brisk pace in the second half of 2013. Despite the inclement weather in December, we finished the year with a respectable gain in transactions compared to 2012. Looking forward, I believe that home ownership in the GTA will remain affordable as borrowing costs stay low. The result could be a further increase in sales in 2014,” said Toronto Real Estate Board President Dianne Usher.

“The average selling price will be up again in 2014 and by more than the rate of inflation. The seller’s market conditions that drove price growth in the second half of 2013 will remain in place in many parts of the GTA. Some neighbourhoods, especially those characterized by low-rise home types like singles, semis and townhomes, will continue to have less than two months of inventory,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

The average selling price for December 2013 sales was $520,398 – up by 8.9 per cent compared to the average of $477,756 in December 2012.

The average selling price for 2013 as a whole was $523,036, which represented an increase of 5.2 per cent compared to the calendar year 2012 average of $497,130.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: November 2013 Statistics

Following is TREB’s market report for November 2013:   Greater Toronto Area REALTORS® reported 6,391 residential sales through the TorontoMLS system in November, representing a 13.9 per cent increase over the sales result for November 2012.

Over the same period, new listings on TorontoMLS were down by 4.4 per cent and month-end active listings were down by 12.1 per cent

“Growth in sales was strong for most home types in the Greater Toronto Area.

Sales growth was led by the single-detached market segment followed by condominium apartments.

Together, singles and condos accounted for almost three-quarters of total GTA transactions,” said Toronto Real Estate Board President Dianne Usher.

"With National Housing Day having just passed, housing affordability is top of mind in the GTA and indeed nationally.

Despite strong price growth and an uptick in borrowing costs this year, monthly mortgage payments on the average priced home remain affordable for a household earning the average GTA income,” continued Ms. Usher.

The average selling price for November 2013 TorontoMLS transactions was $538,881 – up by 11.3 per cent in comparison to the average of $484,208 reported for November 2012.

The MLS® Home Price Index (HPI) Composite Benchmark was up by 5.7 per cent over the same period.

“Whether we consider the average TorontoMLS selling price or the MLS® HPI Composite Benchmark, annual home price growth remained well-above the rate of inflation in November.

This makes sense given the fact that competition between buyers increased last month.

Transactions were up strongly year-over-year while the number of homes available for sale was down,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Is Overpricing Really the Best Strategy?

If you want to get the best price for your home, should you:

A. Ask for more than you think it’s worth?

B. Ask for exactly what you think it’s worth?

C. Ask for less and count on a bidding war to push you over the top?

That's the question posed by a recent Toronto Star article.

The article points to a 2013 study in the Journal of Economic Behaviour & Organization that says the correct answer is option "A" - overpricing is often the best strategy for achieving the highest sale price.

Of course, that article goes on to say that, "pricing high pays off in an extremely modest way, a boost of about $100 to $200 on average over similar homes."

Seriously? A benefit of a mere $100 to $200?

Is that a typo? Did they forget to add another zero (or two) to those numbers?

I can tell you right now that overpricing generally leads to more days on the market. Often many more days on the market.

Is the chance at a few hundred bucks really worth having to live through more showings, more open houses, low-ball offers, etc?

Isn't a better strategy to list closer to market value and sell quickly and for top dollar (relative to list price)?

Some might say that it really depends on how much "overpriced" we're talking about.

Let's say the current market value of the property is $500,000.  Listing at $509,000 is certainly a different story than listing at $529,000.

In other words, one could argue that there are degrees of overpricing.

Others might say that a property is either overpriced or it's not.

Either way, there are two important things to consider when contemplating overpricing your property:

• How long do you want the selling process to take?
• Do you want to run the risk of eventually having to reduce the list price and then end up selling for less than you would have if you'd listed closer to market value in the first place?

Below is the Toronto Star article in full.  Enjoy!

------------------------------

How Best To Set Your Home's Selling Price?

by: Toronto Star Wire Services, Published on Fri Nov 8 2013

If you want to get the best price for your home, should you:

A. Ask for more than you think it’s worth?

B. Ask for exactly what you think it’s worth?

C. Ask for less and count on a bidding war to push you over the top?

A study in the Journal of Economic Behavior & Organization this year argues that the answer—despite what you’ve probably heard—is A: overprice.

They suggest that pricing high pays off in an extremely modest way, a boost of about $100 to $200 on average over similar homes. Underpricing in the hope of setting off a bidding war, the study says, nets average sellers a bit less than they otherwise would have received.

“The main takeaway for sellers is to not buy into the story that you will make more money if you under price,” said study co-author Julia A. Minson, an assistant professor of public policy at Harvard University’s Kennedy School of Government.

Whether overpricing is a smart strategy—as opposed to right-on-the-nose pricing—might depend on how quickly you want to sell.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: October 2013 Statistics

Following is TREB’s market report for October 2013:  Greater Toronto Area REALTORS® reported 8,000 home sales through the TorontoMLS system in October 2013 – up from 6,713 transactions reported in October 2012. Over the same period, new listings on the TorontoMLS system were down.

“The GTA home ownership market has been broadly characterized by a rebound in sales since the summer. Market conditions have been tighter in some market segments more so than others. Ground-oriented homes listed for below one million dollars in some areas of the GTA have been especially popular with buyers, while listings for these home types have been constrained,” said Toronto Real Estate Board President Dianne Usher.

“The supply of listings for many home types and price points has either been down year-over-year or at least not up by the same annual rate as sales. The additional Land Transfer Tax in the City of Toronto and the removal of the government guarantee on high ratio mortgages for home purchases over one million dollars have arguably led many homeowners not to list,” continued Ms. Usher.

The average selling price for TorontoMLS sales in October 2013 was $539,058– up by more than seven per cent in comparison to the average price of $502,127 in October 2012. The MLS® Home Price Index (MLS® HPI) Composite Benchmark was up by 4.5 per cent year-over-year.

“Growth in the average selling price and the MLS® HPI Composite Benchmark will continue through 2014. Inventory levels for ground-oriented home types will be low from a historic perspective and home ownership demand will stay strong as affordability remains in check due to the continuation of accommodative borrowing costs,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.