August 2015 Market Stats: Infographic & Report

 

Following is TREB's market report for August 2015:

Toronto Real Estate Board President Mark McLean announced that Greater Toronto Area REALTORS® reported 7,998 residential transactions through the TREB MLS® System in August 2015.

This result represented a 5.7 per cent increase compared to 7,568 sales reported in August 2014.

On a GTA-wide basis, sales were up for all major home types.

The annual growth rate in new listings was greater than the annual growth rate in sales, but active listings at the end of August were still down compared to last year.

This suggests that sellers’ market conditions remained in place, especially where low-rise home types like singles, semis and townhouses were concerned.

“Buyers in the GTA remain confident in their ability to purchase and pay for a home over the long term. They see ownership housing as a quality investment that has historically produced positive returns while at the same time providing owners with a place to live in their chosen community,” said Mr. McLean.

Both the MLS® Home Price Index (HPI) Composite Benchmark and the average selling price for all home types combined were up substantially in August compared to the same period in 2014, with both increasing by approximately 10 per cent year-over-year.

“A record year for home sales continued to unfold in August as competition between buyers exerted upward pressure on selling prices. It was encouraging to see annual growth in new listings outstrip annual growth in sales, but we will need to see this for a number of months before market conditions become more balanced," 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.

Your Realtor Is Full Of S**t!

With Labour Day behind us now, the fall real estate market has officially begun!

Just like last year, and the years before that, we're going to see a ton of new listings hit the market this week. And inevitably, some of those listings are going to be overpriced.

There are a handful of reasons why a seller chooses to overprice their home. In this post I want to focus on just one of those reasons: The listing agent lied to the sellers about the true market value of the property.

The Sunshine Approach

The manager at the brokerage where I started my real estate career referred to this as "The Sunshine Approach"; the idea being that the listing agent is "blowing sunshine" up the seller's arse by deliberately overvaluing the home in order to get the listing.

I see it happen all the time. A seller interviews two or three realtors, and ultimately chooses the one who suggests the highest list price. The seller gets stars in their eyes, and is fooled into thinking that the ridiculous list price is actually achievable.

The listing agent's plan is simple: continually work on the seller for price reductions until the home finally sells (almost always for less than market value).

Isn't The Seller Partially To Blame?

Yes, the seller is often partially to blame here. Especially when the other two realtors they interviewed suggested lower list prices (which were no doubt backed-up by tangible market data and past sale prices in the neighbourhood).

Instead, the seller chose to list with the one who came up with the highest number, in spite of what the market data showed.

The seller in this situation sometimes knows, in their gut, that it's too good to be true.  But flattery and the promise of an unprecedented sale price get the better of them.

Have I ever taken an overpriced listing?

Yes, of course I have taken an overpriced listing.

The difference being, the sellers knew from the beginning where I stood on the value of the home.

I made it clear to them that the list price they were choosing was too high, that there were risks involved with overpricing, and that a price reduction would eventually be needed.

It's certainly not the best way to sell a home, but sometimes a seller is determined to "try their price first", even if doing so is going to potentially have a negative impact on the final outcome.

In the end, a seller needs to be realistic and question any advice that sounds too optimistic.

If you're interviewing more than one realtor, be cautious if one of them values your home significantly higher than the others.

A little sunshine is good for your health, but too much will leave you burned.

If you're thinking of making a move and would like an honest valuation of your home, feel free to contact us for more info.

July 2015 Market Stats: Infographic & Report

Following is TREB's market report for July 2015:

Toronto Real Estate Board President Mark McLean announced record home sales for the month of July. Greater Toronto Area REALTORS® reported 9,880 sales through TREB's MLS® System, representing an eight per cent increase compared to July 2014.

The number of transactions were up for all major home types, including a double- digit year-over-year increase in condominium apartment sales.

"As we move towards a new record for home sales this year, it is important to point out that home ownership demand has been driven not only by low borrowing costs, but also by the fact that the GTA economy has been performing quite well, with the unemployment rate lower compared to last year. Home buyers remain confident in the long-term benefits of owning a home," said Mr. McLean.

The MLS® Home Price Index (HPI) Composite Benchmark, which accounts for benchmark home prices in communities throughout the TREB market area, was up by 9.4 per cent year- over-year in July 2015.

Over the same period, the average selling price was up by a slightly greater amount, growing by 10.6 per cent annually to $609,236.

Detached homes continued to lead the way in terms of price increases, with annual growth in the average selling price outstripping growth in the MLS® HPI detached benchmark.

This suggests that there continued to be a greater share of high-end homes sold this year compared to last.

"With the level of inventory in the GTA trending below two months, many listings continued to generate a lot of interest from buyers. Not surprisingly, this supported further price increases well-above the rate of inflation. Assuming similar interest rate and economic environments over the next five months, strong price growth will remain the norm for the rest of 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.

April 2015 Market Stats: Infographic & Report

 

Following is TREB's market report for April 2015:

Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 11,303 sales in April 2015.

This was the highest sales result on record for the month of April and represented a 17 per cent increase in comparison to April 2014.

While sales increased strongly on a year-over-year basis, new listings were up over the same period by a more moderate five per cent.

“The record April result clearly points to the fact that a growing number of GTA households view ownership housing as a high quality long-term investment. This is evidenced by the strong sales growth we have experienced in Toronto and surrounding regions for all major home types. First-time buyers and existing homeowners remain very active in today’s market,” said Mr. Etherington

The overall average selling price, which accounts for all homes reported sold by GTA REALTORS® in April 2015, was up by 10 per cent year-over-year to $635,932.

The MLS® Home Price Index (HPI) composite benchmark, which estimates the price of a benchmark home with the same attributes from one period to the next, was up by 8.4 per cent over the same period.

The fact that average price growth outpaced growth for the MLS® HPI Composite Benchmark, suggests that a greater share of higher-end homes changed hands this year compared to last.

Irrespective of the indicator used, price growth in the GTA was strongest for low-rise home types.

However, the better supplied condominium apartment segment also remained healthy with price growth above the rate of inflation.

“Demand for ownership housing was very high relative to the number of homes available for sale in April. This situation is not expected to change markedly as we move through the remainder of 2015. Until we experience a sustained period in which listings grow at a faster pace than sales, annual rates of home price growth will remain strong,” 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.

March 2015 Market Stats: Infographic & Report

 

Following is TREB's market report for March 2015:

Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 8,940 sales in March 2015.

This result represented an 11 per cent increase compared to March 2014.

Sales were up for most major home types, both in the City of Toronto and the surrounding regions.

New listings were also up, but by a lesser 5.5 per cent, indicating tighter market conditions.

“Home sales increased compared to last year as the cost of home ownership remained affordable, with lower interest rates going a long way to mitigate the effect of rising home prices. However, a substantial amount of pent-up demand remains in place, especially as it relates to low-rise market segments. This suggests that strong competition between buyers, which has fuelled strong price growth so far this year, will continue to be experienced throughout the spring,” said Mr. Etherington.

In March, the average selling price for all reported transactions was $613,933 – up 10 per cent year-over-year.

The MLS® HPI Composite Index, which tracks benchmark homes with the same attributes from one period to the next, was up by 7.9 per cent.

Average price growth was strongest for detached homes in the City of Toronto, at 15.9 per cent.

Over the same period the detached MLS® HPI in the '416' area code increased 7.8 per cent.

The MLS® HPI provides a clear indication of price growth due to market forces - the relationship between demand and supply. Comparing MLS® HPI growth to average price growth provides a sense of the changing mix of home types sold from one period to the next.

"It is clear that seller's market conditions in many parts of the GTA are driving price growth. However, looking at the detached market segment in the City of Toronto in particular, growth in the average selling price outstripped growth in the MLS® HPI. This points to the fact that the mix of detached homes sold this year compared to last has shifted towards more expensive properties," 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.

February 2015 Market Stats: Infographic & Report

 

Following is TREB’s market report for February 2015:

Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 6,338 home sales through the TorontoMLS system in February 2015.

This result represented a substantial 11.3 per cent year-over-year increase compared to February 2014.

Large annual increases in transactions were noted for most major home types, in the City of Toronto and surrounding GTA regions.

“Even with the record low temperatures last month, we still saw an increase in the number of people purchasing homes in the GTA. This speaks to the importance households place on home ownership and the fact that buyers continue to view ownership housing as a quality long-term investment in which they can live,” said Mr. Etherington.

The overall supply of homes for sale, as measured by the count of active listings at the end of February 2015, was down by 8.7 per cent compared to the same count in February 2014.

This means that market conditions became tighter, leading to more competition between buyers.

The overall average selling price for February 2015 home sales was $596,163– up by 7.8 per cent compared to the average for February 2014.

Driving this increase was the detached market segment.

In the City of Toronto, the average detached selling price moved above $1 million dollars for the first time in a calendar month.

“The strong year-over-year price growth we experienced in February points to the robust demand for ownership housing in the GTA, coupled with a constrained supply of homes for sale in some market segments, especially where low-rise home types like singles, semis and townhouses are concerned,” 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.

Say Goodbye To Your Condo!

The Toronto Star recently broke the news that Urbancorp has cancelled its Kingsclub Condominium complex on King Street West (read the article here).

In place of the condos, three towers of rental apartments are to be built instead.

What does this mean for anyone who bought a pre-construction unit in this development? Basically, they're screwed.

Yes, they'll get their deposits back. But all they'll have to show in return is a measly bit of interest .

Needless to say, these buyers are nonplussed.

When I first heard the news, I immediately thought of the South Park episode referenced in the photo at the top of this blog post. (If you haven't seen it, here's a short clip that sums up the episode nicely).

Aaaand... it's gone!

Over the past couple of weeks, I’ve had a bunch of clients ask whether or not anyone could have seen this coming.

I tell them all the same story:

I began my real estate career back in 2006, at a small boutique brokerage in the St Lawrence Market area.

My broker of record there had decades of experience in the real estate game, and had spent a handful of those years selling pre-construction condos.

He told us stories of how so many young buyers lost their deposits when the market crashed in the early 1990’s, because the units they had committed to buying were now worth 20% - 30% less than what they had agreed to pay and they could no longer get the financing they were counting on to close.

He also told us about the possibility (however rare it may be) that a condo development could indeed be cancelled if the right (or rather, wrong) set of circumstances were to occur.

These stories stuck with me, and whenever I have a client express interest in purchasing a pre-construction condo I provide them with a detailed list of "what could go wrong." And what happened at Kingsclub Condos is on that list.

Make no mistake, Urbancorp is within their legal right to do what they've done here. It still stinks though.

I keep going back to the question, "What else could these buyers have done with the deposit money that sat stagnant in a trust account for years?"

I'm sure some of them could've used that money to purchase a resale condo instead, rent it out, create some positive cashflow, and start building equity.

That opportunity is lost now though, and these buyers are back to square one.

If there's a positive to come out of this story, it's that we all now have a memorable, real-world example to point to when considering the risks involved in buying pre-construction.

Sure, what happened at Kingsclub Condos is a rare occurrence in the Toronto market, but I don't think any of us will soon forget it.

It'll stick around as a cautionary tale, the one about the time the developer told their buyers, "Kiss your condo goodbye!"

If you’re thinking of making a move and would like to know how we can help, please contact us for more info.

January 2015 Market Stats: Infographic & Report

 

Following is TREB’s market report for January 2015:

Toronto Real Estate Board President Paul Etherington announced a strong start to 2015, with robust year-over-year sales and average price growth in January.

Greater Toronto Area REALTORS® reported 4,355 home sales through the TorontoMLS system during the first month of the year.

This result represented a 6.1 per cent increase over January 2014.

During the same period, new listings were up by 9.5 per cent.

"The January results represented good news on multiple fronts.

First, strong sales growth suggests home buyers continue to see housing as a quality long-term investment, despite the recent period of economic uncertainty.

Second, the fact that new listings grew at a faster pace than sales suggests that it has become easier for some people to find a home that meets their needs," said Mr. Etherington.

The average selling price for January 2015 home sales was up by 4.9 per cent year-over- year to $552,575.

The MLS® Home Price Index (HPI) Composite benchmark was up by 7.5 percent compared to January 2014.

"Home price growth is forecast to continue in 2015.

Lower borrowing costs will largely mitigate price growth this year, which means affordability will remain in check.

The strongest rates of price growth will be experienced for low-rise home types, including singles, semis and town houses.

However, robust end-user demand for condo apartments will result in above-inflation price growth in the high-rise segment as well," 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: 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.