Market Update - June 2018

The Toronto Real Estate Board reported 8,082 home sales through TREB’s MLS® System in June 2018 – up 2.4% over the June 2017 result. 

Here's The Numbers

The average selling price in June edged up by 2% on a year-over-year basis to $807,871. While this is an interesting statistic, it does not reflect the reality of the market. The average price reflects the price of homes that have been selling. Because of the tightening of the mortgage rules those homes have generally been under $1,000,000 with 35% of them being condominiums, either apartments or townhouses, selling at an average price of about $575,000. These less expensive homes impact the “average selling price”.

The other misleading statistics are that the average sales price which was 99% of the asking price with the house selling in 21 days. These statistics are misleading because it has become the custom in the industry to cancel a listing that is not selling and to relist it at a new price. So in reality a property may have had their price adjusted several times before it finally sold and the averages are from the final listing and not from when the house was first placed for sale. 

One fact that is undeniable is that if a property is on the market and hasn’t sold in 3 weeks, it is at least 5% over market value. Today with the Internet, everyone is aware of what a home should sell for. Even if an agent was able to sell a home over market value the home is generally appraised for mortgages and the mortgage would be declined because the house sold at too high a price for the neighborhood. So the question arises, then why do we need a real estate agent? A good agent markets the property to find the buyer who would pay top value for the property. The agents who have and who attract the most buyers to the property have the best chance of getting the best price terms and conditions for their sellers. Today more than ever you need a strong agent with a well-known company to represent your interests.

We have moved into a more steady traditional real estate marketplace, taking an average home 30 to 60 days to sell. It takes that long because we have to find the one buyer would pay the seller the maximum value for the home. The last few years many real estate agents were order takers, today, being in a more traditional sales cycle market, realtors have to be salespeople, finding the buyers and showing them the benefits of the home, the area and the benefits of living in a particular neighborhood.

The real estate market may seem complicated at the present time but it really isn’t. If you or friend are thinking of buying or selling please give me a call. Let me answer all your questions and help you make a decision that is right for you and your family.

Have a great month!

Featured Listing - Buro 53 Coffee Shop

53 Bloor St E (Büro 53 Coffee Shop)

Amazing business opportunity to own a quick serve cafe on Yonge and Bloor. Surrounded by offices, condos, hotels and retail shopping. Tons of foot traffic. Business branding is included in the sale! Existing positive online reviews on Google and Yelp!

Yonge and Bloor is basically the main hub in downtown Toronto.
What better place to serve that delicious nectar coffee!


For more information on this listing or if you have any questions on real estate in the area send me a message! I'm always happy to help out.

CHEERS!

Market Watch - April 2018

April's numbers are out

It's been such an interesting time in the real estate market since the beginning on 2018. There's been so many changes in the Toronto real estate industry. Coming off the market's peak from last year and into January's mortgage stress test, we're now starting to see the market stabilize and the mindset of homeowners coming to terms with the new normal.

TREB MLS® Sales Activity

 
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On a year over year basis, the number of sales through TREB MLS® is down 31.1%. This number is mostly effected by the decrease in amount of sales of detached home which is down 38.4% from last year verses the amount of sales of condos apartments compared to last year, just down 26.0%. 

TREB MLS® Average Sales Price

 
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Just like the number of sales, the average sale price for properties on TREB MLS® was down 12.4% from the year before. Even more than the sales activity, detached homes are really responsible for this total drop in average sales price. Detached properties sold for a total of 14.4% less than a year prior while condo apartments actually increased in value 3.2% on average. This is a bigger deal than it seams given the crazy market we had in spring of 2017 where most of the growth was in the condo property category.

Interestingly, the condo apartments are the only category to increase in average price in the year over year comparison. The average price of townhouses is down 7.8% total and semi-detached is down 6.4% total.

What does it all mean?

We're currently in a market correction. The Toronto real estate marketing in 2017 was a bubble and in my opinion all the new mortgage rules implemented and foreign buyer tax stopped the market from falling out of the sky and help give it a soft landing. As Mr. Syrianos mentions in the full article (linked below) real estate is still a very solid long term investment. Toronto's strong and diverse labour market and continued healthy population growth will support long term home price appreciation.

To get all the details, download the full article provided by the Toronto Real Estate Board.

 

Download the Full Report Here

Featured Listing: 18 Concorde Place, Unit 503

The Online Promo Video

 

A little Nook with a lot to offer

Spacious one bedroom condo suite with full ensuite bath and powder room. Approximately 900 sqft with balcony overlooking an award winning courtyard garden and ravine. Eat in kitchen has 4 appliances, pot lights and overlooks the living room. Large open concept living/dining room has a gas fireplace with oak mantle and walk out to the large balcony with gas bbq outlet. Lots of closets and storage space! Close to Tim Hortons and convenient bus stops!

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Welcome to the Blog

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Hello.

Hey guys, this is the maiden voyage of our new blog. Super exciting! We're looking to posting a new blog here at least once a week until the end of time. The plan is to provide some helpful and sometimes opinionated information on the real estate market in Toronto. This blog will certainly be a learning process, so I'm hoping in time I'll be much better at writing in a year or so. Wish me luck!

What to expect

  1. Monthly Market Updates on the Toronto real estate market. I'll be putting up fancy graphs, numbers and comparisons and make it as informative and easy to understand as I can.
  2. Real Estate Tips and Tricks, like maximizing the value of your home or what to look out for when your looking for your next place to call home.
  3. Highlighting awesome new listings of my own and spreading the love by sharing some cool listings in Toronto from other great Realtors too.
  4. Sharing wonderful business in Toronto! I love find new and unique restaurants and activities around where I live - I know it can make such an impact on our lifestyle. Maybe I'll help you find the amazing diner just 10 mins away you go to on the weekends for brunch after sleeping in! Or a cool date spot of Tuesday nights! Oh the possibilities :)

Moving forward

As with pretty much all new adventures, I'm expecting some bumps in the road and learning curves. The goal will always be to provide good, informative (and hopefully a little entertaining) information to you. How I get there will certainly be changing and evolving as we're moving forward.

With that, I'd also like to ask you if you have anything you want me to share or to go more in depth in, please please let me know! All this content is what I think would be helpful for fellow Torontonians to know but I won't think of everything. Help me out and let me know.