All Posts in Tag

houses for sale in toronto

Planning on Selling Your House in 2016?

In 2015, the average price of a detached home in Toronto surpassed the $1 million mark. Now that 2016 is here, many of us are considering selling our homes while the market is still red hot. If Selling your house is on your list of New Year’s resolutions, here is a list of helpful tips that will make the process of selling your home quicker and also less stressful.

new years resolutions 2016 sell house toronto

Tips for Selling Your House in 2016

1. If the end of your mortgage term is drawing near, consult a mortgage professional about your options. Rates will probably not be this low for some time, so now is the time to seize the opportunity. If you’re in your first year of your term, review your agreement with your lender or financial institution. There might be a hefty payout penalty, so make sure the pros outweigh the cons before making any decisions

2. Are you downsizing? If you plan on using the proceeds of your home’s sale toward a new property, you will need to crunch the numbers and possibly review your budget. If you’re planning on upsizing, prepare for the increase in your mortgage payment. If you’re planning on a mortgage payment increase from $2300 to $2900, try taking an additional $600 a month from your income and put it in a savings account. Do this for three consecutive months and make this account off limits; this is an excellent way to test the waters to see if you’re ready for an increase in your expenses. If you find yourself stressing about the additional cost, you may want to rethink upsizing.

3. How have recent home sales in your neighbourhood been? Market conditions can change in the blink of an eye, so it’s wise to assess comparable homes anywhere between 2-3 months before putting it on the market. If homes sold over asking, find out what features or selling points that home had, and use the same approach when selling yours.

4. Clean and declutter your home a few months before listing. A crowded or cluttered space isn’t very appealing to potential buyers. A large storage room is a great selling feature, but if it’s jammed with things from the late 80’s, buyers won’t be able to assess the actual amount of space available. Sell things you don’t use on Kijiji or donate them to a great cause. The more you give away, the less you will have to pack, move and unpack.

5. Consult a professional home stager. Investing a bit of extra money in home staging can go a long way. Simple things like painting your walls and organizing furniture in a certain way can increase list price significantly, and possible draw multiple offers.

6. Stay focused on your goals. Indecisiveness can impair the selling process, which might cost you time and money in the long run. Get your planning team together and set clear goals and a timeline. Less stress should be on everyone’s New Year’s resolution list for 2016. Happy Selling!

Read more

Toronto Millennials — A Landlord’s Dream

Toronto Millennials are poised to take over the rental market. Are you ready for them?

Millennials: We’ve heard this term thrown around a lot lately, but who exactly are they and what role does Generation Y play in the real estate market?

You don’t need to have an inside scoop to know that Toronto and Vancouver’s housing markets are on fire. As a matter of fact, not a day goes by without an argument of a housing bubble (or lack thereof), or a major media company discussing foreign investment and housing affordability becoming increasingly out of reach.

Toronto Millennials feel the effects of the latter, as the likelihood of having $1 million on hand for a house is slim to none. The first wave of this generation makes up a group of young single professionals. Unlike their predecessors, it’s more common to see millennials in their late twenties and early thirties focusing on advancing their careers. If we look at Baby Boomers and Generation X, we would see people graduating, finding work, settling into an area, getting married and purchasing their first home all before the age of 30. The thought of doing any of that for someone from Gen Y would be overwhelming to say the least.

As for the younger Millennials, the right of passage to adulthood includes transitioning from post-secondary institutions and living with mom and dad to living in the real world. Property managers see an increase in this demographic coming to them for rental properties. Gone are the days where young adults dreams include white picket fences and 2.5 children. Millennials are less interested raising families and climbing the corporate ladder and more interested in seeing the world and being their own boss. If you get the chance to chat with someone between the age of 23 to 28, ask them what their one wish in life would be. Nine times out of 10 it would be to travel or sell hats on the beach.

To the average Millennial, renting vs. buying is the best way to save money in today’s real estate market. As many do not have existing capital or sizable assets, renting puts them at a much lower risk of losing money, should there be a shift in the market. Between a down payment and a mortgage, and first and last rent, losing a deposit isn’t as big of a deal as foreclosure is.

So far this post has taught us that the majority of Millennials will not be buying your property–got it. What we haven’t covered is a way to capitalize on this market. Essentially, Millennials are a landlord’s and property manager’s dream. They make up a market of people in seek of quality rental housing without a major time commitment or financial investment. These people are loyal to premium brands (i.e. Apple or Samsung, iPhone or Android), and if treated right, will make wonderful long-term tenants. They also like to share their positive experiences with their friends via social media and other short forms of communication that don’t require face-to-face meetings, which means more business for you in the form of referrals.

If you are a property owner, leave Marketing to the Millennials to the pros. As seasoned Toronto property managers, we have all the tools to stage your property to make it appeal to quality tenants, and ensure that your investment is in good hands. For more information on our Property Managment services in Toronto, or how we can help source quality tenants for your rental property, contact us today.

Read more

Setting Your Sights on the Suburbs of Toronto

The 2015 Toronto Real Estate Market – An economic landscape where supply rarely meets demand, low-rise houses are highly coveted, and detached homes can fetch well over $1 million. We already know the 416 housing market is red hot right now, but what about the Suburbs of Toronto?

Suburbs of Toronto

Suburban GTA — Living here can really pay off

This year, Toronto has seen an increase in sales of freehold (low-rise towns, semis, and detached) homes, however, the actual figure may surprise you.  From January 2015 to August 2015, there has been a marginal increase of only 2 per cent.  This is mainly due to the lack of active listings as well as affordability.  What might be more surprising is the sales activity in the 905 area – in York Region, freehold housing sales saw radical increases this year, with a 20 per cent jump in New Market alone.

As housing prices in the 416 continue to become out of reach for many, hopeful homebuyers set their sights on the suburbs for a place to call home.  With larger lots, newer homes, less hustle and bustle, and basically more bang for your buck, the suburbs of the GTA are a winning choice for buyers in search of family homes as well as investors looking to stretch dollars.

The following Top 10 List covers housing markets in the GTA which saw the most significant price growth for low-rise homes in 2015, and figures representing a year to date comparison for 2015 and 2014.

Newmarket

Average 2015 House Price 2015: $693,190 – (25% increase)
Average 2014 House Price: $551,413

Total Sales 2015: 1173
Total Sales 2014: 999

Average Days on Market 2015: 16
Average Days on Market 2014: 20

Richmond Hill

Average 2015 House Price 2015: $1,011,031 – (20% increase)
Average 2014 House Price: $833,913

Total Sales 2015: 2014
Total Sales 2014: 1838

Average Days on Market 2015: 16
Average Days on Market 2014: 17

Vaughan

Average 2015 House Price 2015: $886,727 – (16% increase)
Average 2014 House Price: $764,782

Total Sales 2015: 2283
Total Sales 2014: 1981

Average Days on Market 2015: 16
Average Days on Market 2014: 21

Whitby

Average 2015 House Price 2015: $506,715 – (16% increase)
Average 2014 House Price: $437,082

Total Sales 2015: 1424
Total Sales 2014: 1327

Average Days on Market 2015: 14
Average Days on Market 2014: 16

Markham

Average 2015 House Price 2015: $935,272 – (15% increase)
Average 2014 House Price: $814,173

Total Sales 2015: 2287
Total Sales 2014: 2073

Average Days on Market 2015: 14
Average Days on Market 2014: 16

Aurora

Average 2015 House Price 2015: $734,735 – (15% increase)
Average 2014 House Price: $637,213

Total Sales 2015: 656
Total Sales 2014: 536

Average Days on Market 2015: 15
Average Days on Market 2014: 17

Ajax

Average 2015 House Price 2015: $515,318 – (14% increase)
Average 2014 House Price: $451,483

Total Sales 2015: 1414
Total Sales 2014: 1361

Average Days on Market 2015: 12 – (Ajax saw its homes sell the fastest in the GTA
Average Days on Market 2014: 15

Mississauga

Average 2015 House Price 2015: $717,661 – (11% increase)
Average 2014 House Price: $647,571

Total Sales 2015: 4317
Total Sales 2014: 4,166

Average Days on Market 2015: 17
Average Days on Market 2014: 18

Milton

Average 2015 House Price 2015: $521,548 – (10% increase)
Average 2014 House Price: $427,923

Total Sales 2015: 1,443
Total Sales 2014: 1,399

Average Days on Market 2015: 14
Average Days on Market 2014: 17

Pickering

Average 2015 House Price 2015: $563,823 – (9% increase)
Average 2014 House Price: $515,671

Total Sales 2015: 716
Total Sales 2014: 616

Average Days on Market 2015: 14
Average Days on Market 2014: 17

 

Source: Toronto Real Estate Board

Read more

Sellers Continue to Ride Housing Wave as Toronto Home Prices Climb 10 Per Cent

New hope for buyers as supply of new listings in Toronto exceeds demand for the first time since January

mls+toronto+avg+august

 

In August, sellers continued to ride the wave of the GTA Housing Market, as Toronto home prices climbed 10 per cent. Last week, Toronto Real Estate Board President Mark McClean announced that GTA REALTORS® reported 7,998 residential sales through the TREB MLS® System for the month of August. In a year over year comparison, this figure represented a 5.7 increase compared to 7,568 sales reported in August 2014.

mls-avg-aug2015-toronto

For the first time since January, the supply of new listings in Toronto exceeded the demand, however, active listings toward the end of August were still down compared to the same time last year. Although the increase in new listings is encouraging, it will likely take several months for the market to balance out. Until then, GTA housing market conditions remain in the seller’s favour.

“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, an increase of about 10 per cent in a year-over-year comparison.
(Source: Toronto Real Estate Board)

Market Bears anxiously await a bubble to burst, however, if the health of the city’s economy serves as any indicator, this “bubble” is nonexistent … and crash? Not likely. As for residential sales, we can expect them to slow in the upcoming months, however, they will remain hot compared to markets in other Canadian cities – with the exception of Vancouver of course.

Read more

Bank of Canada Rate Cut and Loonie at 5-Year Low — What’s in Store for Toronto’s Housing Market?

bank-of-canada
Last week the Bank of Canada reduced its Key Lending Rate for the second time this year. Down to 0.5 per cent from .75 per cent, this move was in response to our ailing economy along with the slump in oil prices. With large banks and lenders preparing to follow suit, this leaves us to wonder what effects this will have on Canadian Housing Markets—particularly red-hot markets located in prime cities such as Vancouver and Toronto. The rate cut has prompted mixed opinions from industry professionals, with some saying that this move is merely adding fuel to the fire while others believe that it will contribute to the healthy expansion of markets.

Lower interest rates will inevitably boost bidding wars in Toronto, with buyers now having access to additional funds. The city’s population will continue to grow along with the demand for real estate and, in theory, all the factors mentioned will cause housing prices to increase, resulting in a strong real estate market.

Right?

It can be, depending on who you ask. Lower interest rates could also mean a flurry of borrowing, driving consumers further into debt. The price to income ratio of housing might reach a point that no longer makes sense and the only thing in sight will be a correction.

Perhaps … Just about anything is possible.

property-management-toronto-mortgage rates

No matter how you slice it, what goes up must come down, or at least stop—“How hard or soft of a landing are we in for and when will it occur?” Are the questions. We can follow reports and predictions from the top economists, however, we will never know for certain. What we do know is that Toronto and Vancouver didn’t magically fall into the spotlight. Although housing markets in both cities have been scrutinized by economists from across the globe and regarded to be overvalued by up to 20 per cent, both Toronto and Vancouver are supported by strong economic conditions, cultural diversity and population growth. Additionally, the Loonie being at a 5-year low will boost tourism–an industry which provides a significant amount of fuel for local economies in both cities. Assuming that none of the aforementioned will come to screeching halt, it safe to say that the prices of real estate in Toronto and Vancouver aren’t going to decline anytime soon and the likelihood of a crash or even a moderate correction is slim to none.

On a national basis, however, we can expect declines in the real estate markets located in cities where local economies were highly dependent on specific sectors, such as oil or even construction. While those cities are under pressure, the Canadian real estate market has been in great shape so far this year and is expected to stay on track.

No matter what city you’re located in, if you are considering taking advantage of ultra-low mortgage rates, it’s best to remember to calculate an additional 2—2.5 per cent into your monthly housing budget. This will act as a safety net and protect you against radical changes, especially for fixed term borrowers when renewal time rolls around.

 

 

Read more

Toronto Real Estate Market Wrap-Up—April 2015

GTA Real Estate Sales Soar, Toronto Luxury Real Estate Market Hottest in the World

Peak selling season is off to a great start in Toronto, and judging by April’s figures, we’re in for one hot summer.  In an announcement made last week by Toronto Real Estate Board President Paul Etherington, GTA REALTORS® reported 11,303 sales through Toronto MLS®. This is an astounding 17 per cent increase in comparison to the same time last year.  New listings were up five per cent—a modest number, however, still an increase compared to last year.

The overall average selling price of a GTA home was $635,932, up 10 percent in a year-over-year comparison.  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—although the HPI saw a healthy increase, it did not leep up with the growth of the overall average selling price.

 

Source: Toronto Real Estate Board

Source: Toronto Real Estate Board

 

The margin supports the recent buzz regarding Toronto as the “Hottest Luxury Market” with a significant surge in higher-end houses being sold.  Luxury homes in Toronto acquire their name when their list price exceeds $3 million USD.

The demand for low-rise homes in the city is not being met, withrare new listings being snatched up by eager homebuyers.  According said Jason Mercer, TREB’s Director of Market Analysis “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,”

There were increases in the condominium market as well, which unlike detached homes in the GTA, are more accessible to buyers.  The high activity in the Toronto Real Estate Market, as well as in the GTA is proof that people still consider real estate as a dependable, long-term investment.

Is there a Real Estate topic you’d like to discuss?
Contact us! We’d love to write about it in an upcoming blog post!

Read more