Toronto Summer 2014
Yes, sales are up, again, by a staggering 19% in Toronto! The average price of a detached home in the 416 is pushing a million dollars.
http://www.huffingtonpost.ca/2014/05/20/toronto-house-prices-soar_n_5359659.html?utm_hp_ref=canada-business
The number of detached homes sold last month were 1300 with a year over year appreciation of 13% in value.
[Flash back 4 years] http://youtu.be/mu269xorKBY Same Media Perspective.
Sales in the 905 are selling 3 times as many for houses with 3,500 units but the individual price is averaging $645K. Simply put, you are driving till you can afford it.
Sales in tony neighbourhoods like Roncesvalles Village and Bloor West only numbered 57 and 91 units respectively fueling multiple offers approaching $966,000 as an average sale.
While the House Prices are up, Condo prices are flat with values that reflect 2009 pricing as more units become available.
Skyrocketing house prices are forcing more first-time buyers into condos, just to get a foothold in the housing market; only 53% of Toronto home buyers can afford detached houses.
Why is the number of average homes declining?
Seniors (Baby Boomers) are not selling but are instead IMPROVING and Renovating their homes for a long term ownership and are sitting on their real estate assets. This further constricts the supply.
http://www.theglobeandmail.com/news/british-columbia/boomers-sitting-on-163-billion-in-real-estate-holdings/article18770674/?cmpid=rss1
Rentals are also softening their prices with a vacancy rate of 1.5% but bare in mind 70% of Condos in Toronto are Owner Occupied. (MacLeans)
http://www.macleans.ca/society/life/condo-hell/
There is a huge pool of singles, both young and old that live alone. Condos feed that need and lifestyle. Although sales numbers seem high, this market is in temporarily oversupply. In a few years time there will be fewer and the dynamic changes again.
If you would like to discuss what's happening in the Toronto Real Estate Market I invite you to add your comments here.
If you would like to buy or sell Give me a call.
647 218 2414
I answer my own phone
David Pylyp
Showing posts with label rentals. Show all posts
Showing posts with label rentals. Show all posts
Thursday, May 22, 2014
Wednesday, January 30, 2013
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?
Monday, October 22, 2012
Rental application contains do you smoke?
 |
| Photo Cred CHFI |
No matter your opinion on the No Smoking Bans in public places; Landlords in Toronto are also faced with the reality that after renting to Smokers the condo unit or townhouse will be less desirable to subsequent tenants.
Landlords will very often need to repaint, rebroadloom and may very well need to replace fabric draperies.
http://www.realequity.ca/cases/smoking.pdf
The Landlord Tenant Boards decision interprets the "wear and tear" that 20 years ago would have been Normal to now be Tenant Damage.
You can and will be held liable for repairs.
Monday, June 25, 2012
Landlords refused use of Credit Scores by OHRC
Landlord or Investors not allowed to ask credit details? UMMM Sorry. That is just plain wrong. http://www.ohrc.on.ca/en/
Local Tribunals and Commissions start off being well meaning but seriously have exceeded their mandate.
Is it reasonable for the OHRC to impede the [investors] Landlords lawful right to select a Tenant?
Add your comments..
Saturday, June 9, 2012
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.
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.
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