Propinquity

What is it?


So buying a place that is at the City Center is logically more expensive.  The trend to live downtown within the City Core or at the edge of transit (suburbs) is desirable. 

Having the place on the beach  YUP   I get that.

The question I'm asking is simple...

Is Toronto a Growth City that is continuing to expand or are we into a retraction?  A wise gentleman Barry Lebow recently said; 

Here is a simple fact that escapes these writers, the journalists who live with their noses against the windows of life, looking in and being envious of that which they do not personally have - no matter how bad the economy, no matter how high the prices, no matter how outrageous the interest rates, houses will be sold! Period. The "why" escapes them and that is the yearning for a place of one's own, the yearning to have equity, to own versus rent and one of the major factors, our immigration. What is denied most citizens of the world? Rights, human rights and one of those is the right to own land, to own a home. The burning desire to own will outweigh the logic of all economists, journalists or others who analyze real estate like it is actually a rational market. Buying real estate is not rational, it is emotional. So let the gloom and doomers have their say, the public reaction to the market is still the only true barometer of where the market is going. 

The Canadian Business Magazine has a different perspective;

How Low will Prices Go? Investors are potentially more likely to sell when prices decline, which could ultimately flood the condo market with resale listings. With 240,000 more planned condo units yet to be built in the Toronto area, many are worried about a burgeoning supply-demand imbalance. Already, investors are backing away from the Toronto condo market  http://www.canadianbusiness.com/economy/how-low-will-house-prices-go/

All those with strong disposable incomes who want that LARGE Modern Bungalow [into their retirement] cannot find [IT] in the City MUST move themselves to the suburbs and outlying communities.  In the last few years I have seen bungalow demand continue to increase and wheel chair accessibility become more common questions. People want large condo units in the city but maintenance and taxes are prohibitive, In addition to the price per square foot.

Propinquity exists because the house is beside or near something you want or need. 

What do you think?
Add your voice...

Can we go shopping?

Has Toronto RE finally hit the price ceiling?

Are we at the top of the pricing?  Is everything down from here? 

The months stats say that the real estate market has slowed down and I wonder why?

August 3, 2012 -- Greater Toronto REALTORS® reported 7,570 sales in July 2012, representing a decline of 1.5 per cent compared to 7,683 sales reported in July 2011. The decline was most pronounced in the condominium apartment segment in the City of Toronto. Total sales in the rest of the Greater Toronto Area (GTA) were up compared to the same period last year.http://www.torontorealestateboard.com/market_news/market_watch/2012/mw1207.pdf

It’s the summer time! Hottest July on Record! Poor Press in the Media?  Shortened Mortgage AMs while rates stagnate at 3%?  Gas Prices? Insurance Rates? Commuting Times?  Land Transfer Taxes 416 and 905?   So many opinions!   Do they matter?  Will it drop?  ....  Doubtful.

Let’s ask a different question?

If your family member was getting married…   Is it better to help them with the Wedding Expense?   Or would you forgo the wedding,   Suggest they elope, and help them purchase an appreciating asset.

Join the Poll 

http://www.facebook.com/groups/153969581393863/#

We continue [The GTA] to be a safe haven for money, security, jobs, education and lifestyle.   When people stop coming to Toronto, I will begin to be concerned.  The rest is just selling newspapers

How can I help your family achieve their goals this year?

Toronto Sales Update and Forecast

We are rapidly moving to the half year for Toronto Real Estate, and I'd like to take a broader view of whats happening in our City. In downtown Toronto; the commercial sector, The Bank of Nova Scotia Tower sold for a record $ 1.27 Billion. This is the highest value for a Canadian office building and it was sold to Canadian Investors! 





That single sale is a statement about continued confidance about real estate in Canada and the bouyancy of the Canadian Market. The Value of High Rise office buildings and condominiums has been rizing equally because of the low interest rates and strength in the economy. We are seeing increased incidences of multiple offers across all product ranges. In the Toronto West and Etobicoke Region its not uncommon or rare to see a million dollar home in a multiple offer situation.


Last months sales activity was near 11,000 units, That's actually up 11% over last year, Our year over year increase in prices was an average of 5.6%. Loan Approvals are the lifeblood of real estate, From CMHC information that I have, Half of the loans in process, Are for renovation and improvement. We are repairing our houses to make sure we can live in them longer. 


With Condo Sales and Construction, it seems that there is actually a crane everywhere on Toronto's skyline, But they are also moving themselves a little further into the 905, down to Long Branch, off of Brown's Line, into Port Credit and into Oakville. 


Is there a possibility of a Price Adjustment? I can see that... 


Possibly for 2014, When the numbers of absorption cannot handle the number of units available for occupancy, Investors will be looking for tenants, and squeezed to take lower prices, both for rent and for purchase if they decide to sell the units. Detached houses on the other hand see people moving further, for house affordability, The Toronto Land Transfer Tax also plays a part of that purchase decision. 


There are great Mortgage Packages available this summer to move up buyers. If your mortgage is renewing give us a call, we'll see if we can get a better rate for you...  


The Banks won't phone and say   "Hey, we have a better price on this product!" 


For those people who are buying this summer.. There will be an increase in inventory during the summertime, as fewer shoppers are competing for product. This gives you chance to pick through to see whats available and hopefully get a better selection. Give me a call at 647 218 2414 to get started on your home purchase adventure.