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November 2017


Dear Friend,

Historically October is the busiest month of the Fall market and once again this year was no exception. October’s 7,118 sales represented an above-average increase between September and October of almost 12%, a more pronounced increase than usual. That points to stronger Fall market conditions, not unexpected given the government’s announcement of stricter mortgage qualifications starting January 1 2018. 

The change in mortgage qualifications lowers the amount of mortgage that buyers will be able to get, thus eroding their maximum purchase price. 

This has created an urgency for buyers to buy before the January 1 deadline, hence the increase in sales activity. Those buyers that would have normally bought in January/February are buying now, and I expect lower than normal sales at the start of the year. Sales at the start of 2018 will be impacted as well as some people will wait to see what happens. (Some of my Sellers are waiting for the Spring Market as they believe prices will go up and some buyers are waiting for the Spring market because they believe the prices will go down!)

Your home is not a business investment and should not be treated as one. If you buy and sell in the same market there’s little impact on prices going up or down or market conditions changing. If you’re considering selling and not buying then I would strongly suggest you consider doing it right now as the demand is strong. If you are a buyer, now is the time to buy because of the mortgage changes.

While home sale activity in the Toronto area goes up and down depending on confidence in the real estate market, none of the factors affecting Toronto prices have changed. We are in a boom economy, low interest rates, huge immigration, and ultimately Toronto is cheap compared to other cities. There is no doubt that prices will continue to rise over time. 

While this is an overview of the market, each situation is different and based on your needs and circumstances I may recommend a different strategy for you. Give me a call, let’s talk. I want to give you the best advice possible and make sure that you’re well looked after!

After all, you do have a friend in real estate!

 

 

Kelvin Wong,
Your friend in real estate.

(PS I am never too busy for your referrals!)


October 2017


Dear Friend,
 
The 6,379 TREB sales in September, while not the 9,800 of a year ago, are a good indication that the market is healthy and that there is strong demand for homes. Unfortunately our society is one of the following others, and so quite a number of people who were prepared to pay unreasonable prices for homes in March are now waiting to see what happens to the market before they jump in.


 While the market is on average still a sellers’ market with three listings for every sale, there are some market areas where there are six listings for every sale and the condominium market with less than two listings for every sale, resulting in multiple offers and prices increases. Condominium apartments on average have increased 23% since the start of the year.


Good news, bad news! (In the Toronto market)


The good news for buyers is that while the inventory of homes is not huge, it’s certainly better than it was earlier this year. Those buyers who have purchased or who are purchasing today do not have the pressure of the multiple offers (a well-priced property still receives multiple offers!) and the heartache of losing sales as they did at the start of the year.


The bad news is that the prices that we had in March were an anomaly (at the current time) and on average prices came down 20% from March of this year, (still up 15 % since December 2016).


 Many potential sellers are waiting or holding on for prices to return to the high levels of March before they sell. There is logic in that decision if they are moving out of the country or planning to rent. However the majority buy another property. Waiting for prices to go up makes no sense since whatever increase they have in the value of their home, will occur in their new home as well.


 As always, market knowledge and experience ensures a favorable outcome. That’s where I come in if you’re thinking of buying or selling or know of someone who is, give me a call let me put my experience and expertise and the power of RE/MAX behind you!


 If you have any questions please feel free to give me a call, after all you do have a friend in real estate!
 
 

Kelvin Wong,
Your Friend in Real Estate.

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