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Toronto Real Estate Market Update for April 2012

Posted by admin on May 5th, 2012

You can tell it’s spring. You’d swear our national flower was the dandelion! The trees are now that fresh green, and everyone has a spring in their step. The weather brings more people out looking in the Toronto Real Estate Market. The monthly check of the sales numbers from the Toronto Real Estate Board reports that in April, there were 10,350 sales for the month in the Greater Toronto Area which is approx 18% more sales than reported during the same time last year. Incredible!

At the end of April there were only 17,702 homes for sale in the GTA (Greater Toronto Area), which is creeping up slightly. The best ones are being snapped up very quickly! With that, in the GTA there is only 1.7 months supply of inventory now which is “tighter” than last year and a even a little more tilted in the favour of the Sellers.

But, First Time Home Buyers are still in a precarious position. Multiple Offers are still the norm, and with entry level homes creeping up in price, it means that the longer a Buyer waits to buy a home, the more likely it is that the price they were willing to pay in January, will not be the same in May, 2012. The price will definitely be more for the same size of home. What that does for their mortgage commitment? Tougher to find that home within the price that the Buyer was approved. Not agood thing for the Buyer, but great for the Seller!

What does the future hold??? My Answer: We have 12-18 months of these same market conditions. The only thing that could change that is if mortgage rates were to shoot up. It doesn’t look like that’s going to happen any time soon. This is a great opportunity for First Time Home Buyers AND “move up” Buyers. And those Buyers who are looking for an investment property, now is the perfect time.

Whether selling OR buying, the key to taking advantage of current market conditions is working with the right Realtor. If you have any questions about The Toronto Real Estate Market, please feel free to contact me, Susan Macarz, Broker, Re/Max Ultimate Realty Inc., Brokerage by email: susan@susanmacarz.com or visit my Web site: www.susanmacarz.com. I welcome your comments too!

Toronto Real Estate Market Recap March 2012

Posted by admin on April 10th, 2012

Today I did my monthly check of the sales numbers for the Toronto Real Estate Board. TREB reported that in March, there were 9,690 sales for the month in the Greater Toronto Area which is approx 8% more sales than reported during March 2011.

At the end of March there were only 16,920 homes for sale in the GTA, which is pretty well the same numbers as March last year. We continue to see an increased number of sales as more new listings are coming on the market than last year and the best ones are being snapped up! So, inventory levels have maintained. With that, in the GTA there is about 1¾ months supply of inventory. That is considered in anyone’s books to be a Seller’s market.

How’s The Market? My Answer: Hang onto your hat!! The Toronto market is still very hot with muliple offers being very much the norm. My prediction is that these conditions will continue through to the end of the year at least. To be honest with you, I wish it would cool down as it can sometimes get a little silly. The problem with a frenzied market, where the product is low, is that the Buyers are all competing with other Buyers for a home. I have stated this in my previous reports, that when multiple offers occur, market values may be inflated as the Buyer gets frustrated. Frustration at not being successful in a bid for a home, leads Buyers to try and outbid for the next home. When their second home bid is not successful, the Buyer becomes more “motivated” or “frustrated” and will eventually buy a home, perhaps above their budget, in order to finally own a home and begin their equity accumulation in Real Estate.

In areas like Milton and The Beaches, If the amount of inventory doubled overnight, it would still be a strong Seller’s Market. I’ll keep an eye on supply and demand for you and report back next month.

Whether selling OR buying, the key to taking advantage of current market conditions is working with the right Realtor. If you have any questions about The Toronto Real Estate Market, please feel free to contact me, Susan Macarz, Broker, Re/Max Ultimate Realty Inc., Brokerage by email: susan@susanmacarz.com or visit my Web site: www.susanmacarz.com. I welcome your comments too!

Toronto Real Estate Market Update for February 2012

Posted by admin on March 7th, 2012

This morning I did my monthly review of the sales numbers from the Toronto Real Estate Board. TREB reported that in February, there were 7,032 sales for the month in the Greater Toronto Area which is approx 16% more sales than reported during February 2011.

At the end of February there were only 14,546 homes for sale in the GTA, which is pretty well the same numbers as February last year. It looks like there were more sales as a result of more new listings coming on the market than last year but the good ones were all gobbled up! SO inventory levels have maintained. In general terms, The Law of Supply and Demand is still tilted more in the favour of Sellers.

It is a very frustrating period for Buyers. There are homes for sale that in previous years wouldn’t have sold in 30 days, that are getting multiple offers, and selling in a very short period of time. Sellers are holding back offers anywhere from a few days to about one week from when the property is listed, with the desired results. For example, I have a Buyer who is looking to buy a home within a certain price point. We have submitted several offers on several potential properties, however, have been unsuccessful in all of their offers. One example of the market is a home priced at $379,900 that sold for $430,000 which is a 13% increase in price and had 6 offers on it! Another example is a property priced at $1,899,000. and sold for $2,450,000. The Toronto Real Estate Market housing “boom” seems to be across the board in terms of pricing. So what do I think is the problem in this scenario? Mortgage rates are still low, and clients that have locked into the 2.99% rate need to have purchased and closed their home on or before April 30th, 2012. Thus, whether the property is worth the dollars paid and accepted, does not seem to be in the equation. The Buyer needs to buy a property and will bid whatever it takes, regardless of whether the mortgage appraisal will verify the price paid. It will be interesting to see if these other Buyers will need to find additional financing elsewhere if the mortgage appraisal is lower than the purchase price.

How’s The Market? My Answer: The Spring Market will be fun to watch. In many areas and price ranges quick sales and multiple offers will continue to be the norm. You may hear from some news sources that people are worried about a “bubble” that may burst. I disagree. There is still too little supply and too much demand for that to happen.

Whether selling OR buying, the key to taking advantage of current market conditions is working with the right Realtor. If you have any questions about The Toronto Real Estate Market, please feel free to contact me, Susan Macarz, Broker, Re/Max Ultimate Realty Inc., Brokerage by email: susan@susanmacarz.com or visit my Web site: www.susanmacarz.com. I welcome your comments too!

Toronto Real Estate Market Recap for January 2012–Still Strong

Posted by admin on February 11th, 2012

I just reviewed the stats from the Toronto Real Estate Board. TREB reported that in January, there were 4,567 sales for the month in the Greater Toronto Area which is approx 9% more sales than reported during January 2011.

Mortgage rates as low as 2.99% for those quick enough to grab this short lived incentive, spurred on the bidding wars. These rates are in effect until the end of February, 2012, however, some of the banks have now rescinded the availability until only until February 13th, 2012. These affordable rates has bolstered first time buyers dreams of owning a home. The average selling price in January 2012 was $463,534 which is up almost 9% from the same time last year.

At the end of January there were only 11,009 homes for sale in the GTA. This number is very low compared to the 12,109 for sale at this time last year and represents a 9% DROP from last year. Contrary to what I was expecting, inventory is NOT climbing meaning the market is “hotter” than I would have guessed. MORE sales and LESS inventory. In general terms, The Law of Supply and Demand has tilted even more in the favour of Sellers.

What does my crystal ball say? My Answer: It looks like the Spring Market may be a little “hotter” than most people thought. We simply can’t get enough homes listed in the popular areas and price ranges to quench the thirst of the buyers out there waiting to pounce on them. I do feel however that we will see more downward pressure in some higher price ranges and country properties.

Whether selling OR buying, the key to taking advantage of current market conditions is working with the right Realtor. If you have any questions about The Toronto Real Estate Market, please feel free to contact me, Susan Macarz, Broker, Re/Max Ultimate Realty Inc., Brokerage by email: susan@susanmacarz.com or visit my Web site: www.susanmacarz.com. I welcome your comments too!

Toronto Real Estate Market 2011 Recap and Forecast for 2012

Posted by admin on January 27th, 2012

The Toronto Real Estate Market has recorded its second best year on record under the current Toronto Real Estate Board ( TREB ) boundaries. The total sales for 2011 amounted to 89,347 sales, up 4% in comparison to last year’s 2010 figures. 2011 recorded above average sales in activity in The Greater Toronto Area. As mentioned in my December 2011 Recap, there were 4,718 transactions. The average selling price in December was $451,436. up the 4% compared to December 2010. For all of 2011 the average selling price was $465,412. which is an 8% increase in comparison to the average of $431,276. in 2010. It is interesting to note that in the last 10 years, 2001- 2011, home prices increased 90% in value, whereas in the previous 10 years, 1991-2001, the total increase was only 15%! So what about the year 2012? What will happen to the selling prices of homes? I think that although the Toronto Real Estate Board’s forecast is for a 4% increase in prices, I believe that they will be higher–perhaps as high as 8% – 10%. The inventory of homes is still low, and there are more and more buyers looking for homes. It is basically supply and demand.

One example of the increase in real estate values in Toronto, is in the York Mills-Bridle Path Neighbourhood, that is part of TREB’s C12 new boundary division. It also includes the St. Andrews, Hogg’s Hollow, Denlow ,Windfields and Lawrence Park neighbourhoods. The average price for the year end 2011 was $2,095,668, which is a 15% increase from 2010′s average of $1,813,788. Why the increase? Predominantely the influx of more luxury infill homes being built on larger lots, that builders have been buying up with older outdated homes on them. The C12 Neighbourhood is one of the neighbourhood gems in the Greater Toronto Area predominately because of the larger lot sizes, good schools and access to major highways. As a result, the price of the land has dramatically increased, and the selling prices have increased as well.

In the global real estate market, the only countries that are still growing are Japan, Brazil and China. There is a major concern as to the potential of a global recession based on the economic viability of the European and Greek governments. Politicians are working very hard to try to avoid a global recession, and because of this, the Bank of Canada’s concern over the economic situation will probably keep the interest rates at an all time low. One can currently get a 5 year mortgage at under 3% interest rate! I don’t think that the Bank of Canada will change its interest rate until late 2013 and possibly into 2014. It may fluctuate around 3% and stay under 4% for the next year. The biggest question is whether the rates, when they do start to rise, will rise quickly or gradually. If it is quickly, then I see a HUGE problem occurring. More and more houses coming back on the market as affordability may be in jeopardy as people can’t afford their homes. The mortgage insurance rules, however, in the interim, may change and drop to a 25 year amortization rate instead of the 30 year amortization rate as is the norm currently. If this happens, those that cannot be approved for the 25 year rate based on today’s calculations, and yet qualify to buy a home at the 30 year amortization rate, may find themselves in trouble.

The condo market is another area of potential concern in 2012. In 2011 there was a 40% increase in the number of new units being built. Can we absorb the new units that will be built in 2012? My thought…. probably. Toronto is the Number One destination for new immigrants, as 78% of all new immigrants come to Toronto. As a result, with young adults coming into the work force, and new immigrants starting out, a condominium purchase is the first logical step into the Real Estate Market. In many cases the cost of carrying a home is similar to the current rental rates, which encourage more people to really look at owning a home.

I don’t have a crystal ball. It will definitely be interesting to see what actually happens to the economy and to the Real Estate Market when I do my Toronto Real Estate Recap in December 2012.

Whether selling OR buying, the key to taking advantage of current market conditions is working with the right Realtor. If you have any questions about The Toronto Real Estate Market, please feel free to contact me, Susan Macarz, Broker, Re/Max Ultimate Realty Inc., Brokerage by email: susan@susanmacarz.com or visit my Web site: www.susanmacarz.com. I welcome your comments too!

Toronto Real Estate Market Recap for December 2011

Posted by admin on January 10th, 2012

I just reviewed the sales numbers from the Toronto Real Estate Board for the month of December 2011. TREB reported that there were 4,718 sales for the month in the Greater Toronto Area which is approximately 10% more sales than reported during December 2010. The yearly numbers were very strong in 2011 and “UP” over 2010.

At the end of the year there were only 12,868 homes for sale on the Toronto Real Estate Board. This number, although still very low, is slightly higher than what was reported at the end of 2010. January & February are typically big months for new listings coming on the market so the inventory level should climb soon. The sooner sellers list this year the better off they will be. There is still a back-log of buyers out there looking for a home right now with very few choices as new listings are at a low.

That same old question comes up: “What will happen to the market in 2012?” My Answer: much of the same. Sales numbers will stay around the same. Prices will increase, by how much? Not really sure, but there seems to be a rumbling of about another 10% overall increase in prices in 2012. It will be interesting to see what happens when I report the Market Recap in December 2012. It will be interesting to see if this prediction will be accurate?

There should be slightly more homes for sale in January 2012. And with the weather being so mild in Toronto, it looks like an early Spring Market is a storng possibility for homes being listed for sale. All signs point towards a robust real estate market.

The saavy Buyer must realize that although this is a Seller’s market, only approximatley 30% of all the listings get sold each month. Why are the 70% not selling? Different reasons..price is too high, hidden faults in the home, home needs too much work, no parking available, or the location is not the one of choice. It usually always boils down to location, location, location. And then price. And when the right location fits within the Buyer’s criteria, then homes get sold, quickly and usually with multiple offers! It seems that the market is still on the upswing.

Whether selling OR buying, the key to taking advantage of current market conditions is working with the right Realtor. If you have any questions about The Toronto Real Estate Market Recap for December, 2011, please feel free to contact me, Susan Macarz, Broker, Re/Max Ultimate Realty Inc., Brokerage by email: susan@susanmacarz.com or visit my Web site: www.susanmacarz.com. I welcome your comments too!

Toronto Real Estate Market Recap for November 2011

Posted by admin on December 12th, 2011

I just reviewed the statistics from the Toronto Real Estate Board. TREB reported that in November, there were 7,092 sales for the month in the Greater Toronto Area. November 2010 there were 6,384 sales so we have experienced an approx 11% INCREASE in the number of sales compared to last year.

The real news is that inventory levels continue to decrease. At the end of November there were only 15,551 homes for sale on the Toronto Real Estate Board, compared to 18,305 at the end of November 2010. So inventory is shrinking and sales numbers are INCREASING. Despite traditional thinking, December will be an excellent opportunity for anyone to list and sell their home. There is still a back-log of buyers out there looking for a home, with fewer choices right now.

Question: “What will happen to the market in the new year?” My Answer: Continued moderate increases in prices in 2012 and robust sales activity. One unknown is, can challenges in the global economy (Europe is a big concern!) hurt our real estate market. There are many opinions on this. The leading indicators of any downspin in our real estate market would be a significant downturn in our local economy and increases in interest rates. We seem to be ok with that for the time being and our market should continue to be a safe haven for now. Our mortgage interest rates are still considered to be very favorable with many new first time homebuyers opting to use favorable variable mortgage rates when buying their new home. There still seems to be multiple offers that are prevalent in the Greater Toronto Real Estate market. Resale properties are still seeing high sales figures as the inventory level is low, and Buyers are trying to outbid each other in order to be successful in finally owning a new home. Where will this lead in 2012? Indication is that the Real Estate market will continue in this path for at least the next 6 months…but it depends on the world economy and how well Canada fares in relation to all the other countries economic fiascos.

If you have any questions about The Toronto Real Estate Market Recap for November, 2011, please feel free to contact me, Susan Macarz, Broker, Re/Max Ultimate Realty Inc., Brokerage by email: susan@susanmacarz.com or visit my Web site: www.susanmacarz.com. I welcome your comments too!

The Toronto Real Estate Market Recap for October, 2011

Posted by admin on November 5th, 2011

The Greater Toronto Area Real Estate market continues to be a safe haven!

I just reviewed the stats from the Toronto Real Estate Board. TREB reported that in October, there were 7,642 sales for the month. October 2010 there were 6,504 sales so we have experienced an approx 17% INCREASE in the number of sales compared to last year.

At the end of October there were only 17,794 homes for sale on the Toronto Real Estate Board, compared to 18,305 at the end of October 2010. So inventory is shrinking slightly and the sales are picking up year over year. Buyers continue to have limited choices in many areas of the GTA requiring them to act quickly when they see something they like. What we traditionally see is that many people delay their decision to list their homes over the next 2 months which will cause the inventory to decrease even further. Between now and the end of the year will be a VERY good time for new Sellers to come on the market as competition will decrease and there will still be a back-log of buyers out there looking for a home.

So the question I always get is …. “What will happen to the market?” My answer: Much more of the same. The market will continue to be very strong well into 2012. Prices should remain stable. Inventory levels will likely increase in the new year, however in most areas and price ranges, conditions will still favour Sellers.

The global economy continues to be real concern and we’ll see some changes over the next few months. Even with this distraction, indicators seem to point to our economy not taking much of a hit and we’ll continue to be in pretty good shape. Our real estate market will continue to be a safe haven. I’ll keep an eye out on this for you. And with the latest G20 summit in France, Prime Minister Harper has indicated that Canada will not help the European economy financially and I believe he indicated that Canada will not be heading into a recession. Good news for our Country, and for the Toronto Real Estate Market! What actually happens remains to be seen.

If you have any questions about The Toronto Real Estate Market Recap for October, 2011, please feel free to contact me, Susan Macarz, Broker, Re/Max Ultimate Realty Inc., Brokerage by email: susan@susanmacarz.com or visit my Web site: www.susanmacarz.com. I welcome your comments too!

The Toronto Market Recap for August 2011: Greater Toronto Area Real Estate Shows No Sign of Slowing Down

Posted by admin on September 11th, 2011

I just reviewed the stats from the Toronto Real Estate Board ( TREB). I’ll simplify things here for you. TREB reported that in August, there were 7,542 sales for the month. August 2010 there were 6,083 sales so we have experienced an approx 20% INCREASE in the number of sales compared to last year.

At the end of August there were only 17,248 homes for sale on the Toronto Real Estate Board, compared to 18,823 at the end of August 2010. That represents about an 8% drop! To put these numbers in “English”, we’re not getting enough new listings coming on to keep up with the number of sales that are happening. We are still in a very active market.

So the question remains …. what will happen to the market? My prediction remains the same. The market will continue to be very strong until at least the end of the year and well into 2012. There should still be price increases but a slower rates than we’ve experienced over the past 2 years. Inventory levels will likely increase slightly, however in most areas and price ranges, conditions will stay favouring Sellers.

Despite some troubling financial news we are hearing about what’s happening in the U.S. and Europe, in Canada and our area in particular, all indicators seem to point us out to be in pretty good shape. I’ll keep my ear to the ground and keep you posted if I hear anything change!

With the Bank of Canada holding all the interest rates at a very low rate with no sign of increases in the near future, it seems to this writer, Susan Macarz, Broker, Re/Max Ultimate Realty Inc., Brokerage, that it is the perfect time to buy a home in the City of Toronto or the surrounding area of the GTA. Despite the doom and gloom of the economy of European countries and the USA, the most difficult part of Canadians wanting to own a home, whether it is a single family home or a condo, luxury property or income property, the number of available choices with low inventory of homes to look at, makes it very difficult to find that perfect home.

If you have any questions about The Toronto Real Estate Market Recap for August, 2011, please feel free to contact me, Susan Macarz, Broker, Re/Max Ultimate Realty Inc., Brokerage by email: susan@susanmacarz.com or visit my Web site: www.susanmacarz.com. I welcome your comments too!

The Changing of York Mills and Yonge: A Hogg’s Hollow Tidbit

Posted by admin on August 15th, 2011

Map showing the location of the York Mills parking lot

York Mills and Yonge and more specifically, Yonge and Wilson Avenue’s commuter parking lot on the north west corner of Yonge and Wilson/York Mills, currently is accessible for commuters to access the York Mills/Yonge Subway system. It currently holds 260 parking spaces. This parking lot has been a bonus for commuters living in the area and taking the TTC to work or to recreational activities. Many local residents and commuters still are not aware of what lies ahead. While the bus depot was under construction, the lot was used primarily for the TTC. Cars were not permitted. Since the repair was completed, the inconvenience of not having parking, is now “back to normal.”

However, since July 2010, Build Toronto, which is the city’s arm’s-length real estate agency, has been in the process of transforming this property into a planned 8 storey mixed-use office building. The plan was approved by the North York Community Council in June 2010, but with the revision to a 7 storey building. Slated to start construction sometime in 2012, the new plan calls for up to 370 underground parking spaces. Confusing!! Is it to be 7 storey’s high or 8 storey’s high?? Residents and local rate payer associations are concerned with the traffic patterns that will affect the neighbourhood. Unfortunately our City Council has often been vague in detail of full disclosure to the public, and then push through what they see as their vision and not seriously consider the local residents’ concerns.

Located in the prestige Hogg’s Hollow neighbourhood, this office building has concerned the local residents who feel that the parking spaces available are far less than for the numbers of people who will be employed in this building. More traffic congestion. And no more parking for commuters.

But this is not all! The parking lot located at 4155 Yonge Street, beside the Jolly Miller Tavern, is also slated for development. Parking is a premium in the neighbourhood. Commuters need some spaces to park their vehicles. As development of parking lots seem to be the new agenda of Toronto’s Build Toronto agency, and new office buildings pop up, the face of Hogg’s Hollow and Yonge and York Mills is changing rapidly. Daily parking rates in an office building, will definitely be more expensive than the current daily fees in the municipal parking lots. And if this property becomes a residential building??? Definitely no public access for parking.

A possible solution: the use of TTC buses by adding routes within the Hogg’s Hollow Neighbourhood and the York Mills-Bridle Path Neighbourhoods and these will need to be increased in times and frequency to bring commuters to the Subway. The TTC is cash strapped as is…so the question remains, will the city council consider all the ramifications that the lack of commuter and public parking has in the Hogg’s Hollow Neighbourhood??

If you have any questions about Hogg’s Hollow Neighbourhood and the York Mills Neighbourhood, please feel free to contact me, Susan Macarz, Broker, Re/Max Ultimate Realty Inc., Brokerage by email: susan@susanmacarz.com or visit my Web site: www.susanmacarz.com. I welcome your comments too.