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The real estate markets so far this year have been exceptionally active, with near all time record monthly sales volumes and fairly significant increases in average home sale prices. In June we saw a drop in sales to, a still reasonable, 8,442 home sales, with an average home sale price of $435,034.
The big news is that this year the "normal" pattern has changed. With May and June showing progressive decreases in volume when in most years they would be the most active sales months. As far as the Toronto real estate markets are concerned; it is like we are 2 months ahead of normal, peaking in April instead of June. So, why? Well a big part of this is probably related to the perceived expenses related to the now active HST. The idea of avoiding the HST, by closing before July 1st 2010, and paying 8% less for all related services has made home buyers extra eager to move this spring.
The people who have benefited the most from this strong spring has been the Sellers, since they are the ones that usually pay for the real estate agents commissions, which account for the biggest part of the increased expenses. Yes, a REALTOR®'s services are not cheap, although I would argue that they are very often worth what you pay.... but I am a little biased on that one.
So what does this mean for the real estate markets over the nest few months. Well, if you are a buyer it is a great time to get very active in your search. The main reason for that is that there is a fairly good sized supply of homes and a fair number of the general public are still thinking that the HST makes buying a house a lot more expensive, so they may postpone their searches for a while. That combined with the usual summer market conditions that often cause a slight dip in sales volumes in the summer may add up to some great deals with less buying competition. A great opportunity to find a motivated Seller for the cost of around $160 in taxes on your closing costs. That's it, only $160, since the Buyer's agent is most often paid for by the Sellers through the Seller's agent.
In the long term, being later this year and on, we will probably see that people become apathetic with the HST, taking it for granted, just like we all did with the GST shortly after it was introduced. At that time it will be business as usual. As for the potential for reductions in the costs of services; I think that is unlikely, based also on the experiences of the GST.
The GST was supposed to take the "hidden taxes" that were paid throughout the production and distribution process and give them transparency, for the consumer, buy summing them up at the end point of sale so that everyone knew how much tax they were really paying. By allowing the businesses to claim the tax credits, as they purchased materials and other business expenses, the end price of products and services were supposed to go down at least relative to the savings the companies would get. However, I doubt that many people can say that they saw any significant decrease in retail prices that could be contributed to the GST system instead of improvements in efficiencies, cheaper imported materials or foreign labour markets and the aspects of competition related them. This is also likely to be the case in the real estate markets.
Competition in the real estate markets already means that commissions have become much more flexible in the past seven, plus, years that I have been a full time real estate sales representative. It have changed the face of many of the real estate brokerages throughout the Greater Toronto Area giving rise to brokerages like Right At Home Realty Inc., who focus on providing their representatives with the services that are required without having to charge for extra "brick and mortar" office space that the REALTORS® are, very often, not using. This allows the individual REALTOR® to be more competitive and quicker to respond to clients needs that in many traditional brokerages, which is the main reason that I, and many more, moved ( for me it was from a Century 21 franchise to Right At Home almost 4 years ago).
But I digress... The real estate markets are likely to see a slight dip in sales over the next couple of months to be followed by a small surge, as buyer's realize that they still need to have a home to live in and that the costs are still just as affordable as they were in the spring. This would be similar, although smaller in effect, to the market reaction at the end of 2008 and the beginning of 2009 when the perception of the world coming to an end, through world recession and the U.S.A.'s election uncertainties. In the end life had to go on and people still needed to buy and sell homes and, statistically speaking, they were still affordable even as they do today.
So, If you are thinking of buying a home now is a great time to get actively searching with the help of someone like myself. If you are looking to sell you can still expect a fairly good price, but the higher your urgency to sell is the more likely you will have to be prepared to negotiate with offers that have lower initial offerings. At the end of the day both the Buyers and the Sellers have to agree to the value of the property in order to get a sale and everyone involved needs to be realistic in order for that to happen (with the exception that all parties have equally unrealistic expectations that lean in the same direction and nobody, like a REALTOR®, educates the parties [particularly their Client if a REALTOR® is involved] to the true value of the current real estate values). The Greater Toronto Area'a real estate markets are not about to stall completely and we are still likely to see healthy sales throughout the rest of the year so there is no need to panic in either direction, but it is always wise to get representation and know what are realistic expectations for your needs.
More in depth statistical reviews for Richmond Hill, Aurora and York Region's real estate markets will be posted soon.
Please feel free to call or email me if you are considering buying or selling a home, in York Region or the Toronto area, to get insightful representation and the results that we all want.
Everyday we are bombarded with information from a wide variety of sources. Some we have become accustom to ignoring, like advertising, and others we are told should be seen as authorities on facts about our world and how it effects us. News media is generally believed to be trustworthy and yet I keep hearing and reading fearmongering and out of context facts or at least without perspective.
I thoroughly agitated today while listening to the a news radio station today. They had a story on the
Toronto area real estate markets, or it could have been all of Ontario, and were questioning whether we were heading into "another bubble". They were talking about the increase sales of something around 70% "year over year for the month of December" and the huge increase in average sale price. The only thing I could think of is "Why are they not asking WHY" because if they did the numbers would not be nearly so surprising or indicative of a potential problem.
So what really happened? First of all "Year over Year", for December, just means the change for the month of December from 2008 to 2009 ( in this instance) and does not take into consideration any previous Decembers or whatever else has happened in any other month. Fortunately the Toronto area real estate markets are bigger than just one month per year and they affect and are affected by many different events and factors.
In this case the "news" station was not noting the simple fact that last December the real estate markets were very slow, due to a general perception of uncertainty and economic risk. There was an election in the States and the world economy was heading down rather quickly. This meant that fewer people were willing to commit to a large mortgage and fewer were willing to buy the very expensive homes. For freehold homes on the resale market only 125 out of 1692 homes sold, in December 2008, were sold for $700,000. That is only 7.39% were as in 2007 it was over 11%. This caused the Average price to drop dramatically, for which the news people were reporting a crash in prices, even though an individual home really only decreased in value by about 3%. This year the volume of sales is back up and at a historically hight level, with an increase of 19% over 2007 (for December on the Toronto Real Estate Board's MLS® system). However, that means that the increase in home sold, compared to December 2008, was 215% which would be alarming if it had not been for the drop in volume last year. Overall 2009 saw 87,308 homes sold in the Greater Toronto Area on the TREB MLS® system which was less then the number of sales in 2007.
As far as the average price, it increased by 14% over December 2008, but only 4.3% over December 2007. Horror of horrors that's just over a 2% per year increases when annualized. The reason for most of this increase in average sale price is the same reason why we had an inflated decrease in 2008, the composition of what is selling has changed again. Those $700,000 plus homes that were harder to sell in 2008 are selling again and account for 11.8% of the freehold resale real estate transactions.
There was also a statement that the markets are expected to cool down later this year and have smaller year over year increases. Well that's a no brainer. Seeing as the sales volumes were in a slump last year for the first 3 months it makes sense that as this market carries on stably the difference will decrease as we approach the months were last years sales were more normal and not affected by the uncertainty that people were feeling at the end of 2008 and early 2009.
They were commenting on how the HST is likely to cool down the real estate markets. This is very true about the new home markets as most new homes will cost an extra 8% due to the added tax. Especially for freehold homes that are less likely to be under the $400,000 price range where there are rebates available. On the resale side the HST only affects the the fees related to buying or selling and not the price of the home itself. For resale homes there may be an increase in value and demand as an 8% gap in prices between new and resale is instantly created on July 1st.
The facts are that the economy is doing fairly well, all things considering, our lending markets are fairly secure and interest rates are still very low and are likely to stay "historically low" for a while even if they do rise as the year goes on. Most importantly, there are a lot of people that want to buy homes, either upgrading, downsizing or buying their first home. We have not been in a "bubble" in this millennium, as the economics behind the real estate market (in the GTA) are still very sound with high demand and reasonable affordability. I really hope that there will be a resurgence in the "investigative" side of journalism very soon, people who ask "Why" before parroting statistics that they don't understand, solely to meet a deadline or cause panic.
The important thing to note is "Don't Panic" last years dip was entirely related to people putting their plans on hold because they were nervous. Now the prices are higher and likely to continue in that direction, preferably in a sustainable manner, and the best way to keep homes in your realm of affordability, if it is currently borderline, is to be in the market by owning. Not irresponsibly so, but that is were having the right agent comes into play, one that listens to your needs and helps you find the balance of what you need and want to keep your investment as safe as possible.
It has been a very busy week. It started off with a great client finding the perfect house which meant that they had to sell their current home. So we listed their home Monday night and by Thursday we had multiple offers. Things were going so fast I didn't even get a chance to blog about their home. To top it off several other clients have been looking and every time I make a list of 5 or 6 places to see, by the time I get the showings booked 2 will be sold conditionally and another is likely to have a registered offer.
There are still some very nice homes available and prices are still good, but buyers must be prepared to make quick decisions about whether a given house is the right home for them in order not to miss out.
As for sellers, this fall the real estate markets seem to be heating up as the weather cools off. So, don't worry about waiting until spring if you really want to move now. I think this year is going to beat most of the expectations from the real estate industries forcasters.
The Greater Toronto Area real estate markets are finishing off the year with a boom. September 2009 had 8,196 homes ( both freehold and condominium) through the Toronto Real Estate Board's (TREB's) MLS® system with an average sale price of $406,877.
In the Richmond Hill MLS® districts there were 225 detached homes sold out of 403 available homes with an average sale price, for the three districts, of $627,700. This is a huge jump up from last years 126 homes sold in the Richmond Hill districts and a mere 6,424 homes sold in the GTA in 2008.
Now is a great time to buy or sell a home in Richmond Hill, Aurora or anywhere in the Greater Toronto Area.
First A quick update on this years Toronto and GTA real estate markets. Most of us recognized that 2009 started off as a very slow year. Buyer's were nervous and their savings had been decimated or worse. But the real estate market started to bounce back in March. The Total number of home sales on the Toronto Real Estate Board's MLS® system in March, April and May 2009 were only slightly lower than the 2008 numbers, before the markets started to slow down.
Real estate was far hotter, this summer, than the weather. June 2009 set an all time record for most homes sold, in the month of June, with 10,955 home sold. July was only just short of 10,000 home and August put in a very respectable 8,035 home sales. This compared with 2007 is only 24 less than the number of homes sold, in the Greater Toronto Area, for August and the average sale price was up over $26,000 from August 2007 to August 2009 at $387,921.
This year there have been more sales in the first 8 months that in the same month for 2008 despite the sluggish start. September is shaping up to be another good month for home sales with over 3,300 sales in the first half with an average sale price of $393,818.
This is proof that the Toronto area real estate markets have weathered the global downturn and that there never was a bubble in our prices. What we experienced last fall and winter was due to people being nervous about the economy, mainly the American economy, and the possible outcomes of the US election. Now that confidence is rising we are well placed to home values rise again at a reasonable level.
The Doom and Gloom predictors are at large these days, telling everyone that real estate prices in the Greater Toronto Area are going to drop. And they may, however any price decrease should be minimal and short lived. The one thing that is going against the real estate markets in the Toronto area, including Richmond Hill, Aurora and all of York Region, is low consumer confidence. Unfortunately this low consumer confidence issue is mostly unsubstantiated. Yes the stock market has had a major correction and the DOW Jones looks like an EKG chart but most of the economic factors that support a strong real estate market are still here.
One of the biggest misconceptions currently going around is that the real estate markets have slowed down to the point of being a strong buyer's market. It is true that the number of sales in 2008 are lower that 2007 and even a little off of 2006 numbers. However, historically speaking the sales volume is still very high. A great analogy for our market sales was given at the Toronto Real Estate Board's annual general meeting on Monday Oct 27th. It was that the 2007 real estate sales were like driving on the 401 at 150 clicks (obviously not during rush hour) and now we have slowed down to 120 Kph. We are still moving very fast but it seems slow compared to what we were going. As it is the Toronto area real estate markets are still aiming for about 80,000 sales in 2008 which is a volume that was only reached starting in 2004, so historically still very high.
They also talk about rising inventory levels. However the inventory levels in the Toronto real estate markets is still under 4 months supply. This means that if no new homes are put on the market and sales remained the same it would only take 4 months to run out of available homes. This is well within the range that indicates a balanced market not a buyer's market. So unlike some areas in the U.S.A where there are as many as 12 months supply, we are far from over stocked in homes. We may not see huge increases in price this year but if people don't panic then we also should not see major price reductions, except on homes that are over priced to start with.
Other factors to consider are mortgage rates which are still very low, and unlike some areas of the U.S.A. mortgages are still readily available here in Canada. Speaking of mortgages, our banking systems are much different here in Canada when compared to the U.S.A. and as a result are in a much stronger position than their counterparts south of the boarder.
Also consider that unemployment is still very low, and the rate of foreclosure is only about 0.25% according to CMHC as compared to 1992 when it was close to 6% and currently in the States where foreclosure rates are close to 20%. It is believed that the number of speculative buyers is significantly lower than back in 1989 so that should not be a huge flood of homes on the market especially since our rental markets are still very strong. We also still have a large volume of new immigrants into the Toronto areas, creating demand for homes both in the rental and purchasing sectors.
All in all our economy is healthy but it is being rattled around by uncertainty. Now is actually a great time to buy a home as it is a much better investment that the current stock market, unless you can correctly guess which way it will move today, and because some sellers and their agents are buying into the hysteria and looking at and even accepting offers that are lower than would have been the norm a few years ago. It is also expected that our economy will start growing again as early as 2010 so buy now and for the long run (5+years ) and you should see a good return on your investment especially over renting.
For
real estate help in Richmond Hill, Aurora, York Region and Toronto please visit my website or call me at 416-278-2335 and start finding the right home for you.
This is the start of a series of reviews, pictures and comments on the parks of Richmond Hill.
Richmond Green is located at Leslie and Elgin Mills right next to Richmond Green High School and the Richmond Green library. It has a skate park, water park,, skating arena, soccer fields, walking paths, sand and play area and an eco-educational garden area. Richmond Green is often used by the residents of Bayview North and Bayview Hills, in Richmond Hill, and by the the City of Richmond Hill for events like the Canada Day fireworks show (always fun but traffic is heavy so come early and prepare to have to deal with traffic when you are leaving).
For information on
Richmond Hill real estate or to find your perfect Richmond Hill home please visit my website and request a
Richmond Hill Home search or a
free Richmond Hill home evaluation.
The Province of Ontario has just announced that it is extending the land transfer tax refund for first time buyers of newly constructed homes to now include resale homes. This means that first time home buyers can now save up to $2,000 on a resale home purchase. The legislation for this rebate has not yet been passed, but any first time home buyer that enters into an "agreement to purchase and sale" on or after December 13th, 2007 is entitled to a rebate of up to $2,000 once the legislation is passed.
The City of Toronto has also up dated their new land transfer tax so that first time home buyers should not have to pay the land transfer tax on the first $400,000 of their home purchase at all. Previously any first time home buyer who is buying a home that is priced over $400,000 had to pay the full tax up front and then get a rebate for the tax paid on the first $400,000. Under their new system, which they hope to have in place before Feb 1st 2008 when the tax starts, first time home buyers will be able to pay only the tax owing on the balance of the purchase price minus $400,000.
Well I did it! I took the plunge and took my business and added to it to make a more
seamless service to help my clients get better results, quicker and more
efficiently. I have now added mortgages to my real estate service by becoming a
Mortgage Agent with Mortgage One Solutions Ltd. a member of The Mortgage Centre.
Now you can get a great wholesale mortgage rate with terms that best meet your needs. Get your
pre-approved mortgage quickly and easily. Best of all, I work for you not the banks, top that off with the fact that my main purpose is to help you buy a home, or sell your home by providing mortgage approvals to qualified buyers; so I am not concerned about finder's fees and I will concentrate on just getting you the best mortgage for your needs.
Looking to renew, refinance or consolidate debts? I can help you with that with the same emphasys on exceptional service and great mortgage products.
I protact your record by only pulling your credit once when I shop your mortgage application to over 40 lenders for the best rates. Including most of the big banks, although some of them only deal with mortgage brokers through subsiduary businesses, I can often get you the same or better rate that you can get at the banks. Another benefit is that I don't just let you fill in the blanks and press submit. I work with you and your situation to get you mortgage approved and if there are issues that are blocking your application, like outstanding debts, I will go through your report with you and help you to get your credit record back on track.
Happy house hunting!
2007's real estate markets seem to be unstoppable. Once again October sets a new Toronto
MLS® record for the number of homes sold smashing the previous October record (Oct 2003) by 10% and sending the total home sales, for 2007, over 81,500 homes sold. That is just 1,500 short of the final number of homes sold in 2006 with two months to go, in which we would usually expect to see about 10,000 sales more. On top of that the sales volume in Toronto are expected to be extra high in November and December as home buyers are trying to avoid the new municipal land transfer tax which comes into effect on homes purchased after January 1st, 2008 and closing after February 1st, 2008.
The average purchase price for a home on the Toronto
MLS® system in October, 2007, was $394,646 up from last October's $356,423.
In Richmond Hill's 3
MLS® districts (N03,N04 and N05) there were 396 homes sold with the majority (211 homes) in the South end (N03) with a high number of Condominiums and an average sale price of $408,291 where as in the North end (N05, Oak Ridges down to Gamble Rd.) the there were only 68 homes sold, mostly detached home, with an average sale price of $491,850.
Toronto home's averaged $522,800 for the 1,602 homes that sold in October. That said there are still areas where you can get a detached home for under $400,000.
Real estate markets in the Toronto area and York Region are still very strong and it is still expected to continue being strong with stead price increases for the next few years. Making now a great time to buy or move if you haven't already.
If you would like more information feel free to contact me or fill out a "home search request" or " Home
Evaluation request" on my website
www.AndrewHodgeREALTOR.comTalk to you soon.
Finely detailed home in golfing country • 3 bath, 3 bdrm bungalow - MLS® #N1253834 $650,000 - Luxury hobby horse farm Tottenham, New Tecumseth - Luxury in the Country! This spectacular, renovated, bungalow seamlessly combines all of the modern
Read More...
Toronto Home Sales in August are well above expected numbers in terms of volume. As of August 17th there were 3,838 homes sold, up 17% from Aug 2006, and the average sale price across the Toronto MLS® system was $355,829.
So it looks like the summer market is doing very well with the lower priced home and condo sales. I, for one, am looking forward to see how the upper priced home sale come back in September.
The Tenant Protection Act is no longer the act that governs residential rental agreement in Ontario, Canada. It has now been replaced with the
Residential Tenancies Act with a few significant changes.
First, in the old act tenants were entitled to 6% interest on there last months rent per year payable each year. Now the interest has been reduced to the same as the consumer price index which will also be used in determining the rent increase amounts that landlords can charge yearly. This will, within reason , make a last months rent always equal the last months rent no matter how long you stay in the unit.
Landlords will now be allowed to inspect the unit for maintenance problems with 24 hours and the process for evicting tenants that have damaged their rental property ( either themselves or their guests) have been made easier. So be kind to your rental unit.
The Ontario Rental Housing Tribunal has been given a new name and there are supposed to be improvements to the process of dealing with issues between landlords and tenants. This new entity is called the Landlord and Tenant Board.
If you are, or want to be, a landlord or tenant you should read the new act and know your rights. Get your copy at
http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_06r17_e.htm its free and updated online if there are any amendments. Or at
http://www.mah.gov.on.ca/userfiles/HTML/nts_1_26923_1.htmlIf you are looking to buy or sell your home or investment property call me or contact me through my website at
www.YourAreaHomeTeam.ca
York Region's real estate markets were hot in July 2007 as were all of the Northern districts on the Toronto MLS® system. Sales this year were up 27.7% with 1,797 homes sold compared to 1,407 homes sold in July 2007. The year to date home sales numbers are also up 16.3% to 12,232 homes sold in York Region, the Uxbridge area of Durham and parts of Simcoe County.
Over all average sold prices increased by 5% from $373,573 to $392,360 in July 2007. There were some very active markets in York Region including the 3
Richmond Hill Ontario real estate districts (N03, N04 and N05), Aurora (N06) and Vaughan (N08).
In Richmond Hill there was an increase of 47.1% in the total number of homes sold, going from 291 (July 2006) to 428 (July 2007) homes. Most of this increase was in the South end in the N03 and N04 districts. Richmond Hill seems to have been hit by the summer market effect resulting from higher price range buyers going on vacation. The result was a decrease in the average sold price but an increase in the median home sold price where they were very close to one another. The largest effect was in the detached home market where, in the N03 district, the average home price dropped from $601,645 to $556,140 while the median home sold price increased from $537,000 to $557,750, not that that is chump change or anything but there were definitely fewer million plus dollar homes sold in July 2007.
Aurora Ontario's real estate market saw an increase in home sales of 26.3% from 57 to 72 and an increase in average sale price from $392,658 (July 2006) to $454,512 (July 2007).
In the N08 district (Vaughan) and the N11 district (Markham) both saw increases in sales volume between 27% and 30%.
Happy house hunting.
Toronto's real estate markets keep motoring along. In July 2007 there were 1,590 homes sold in the central districts on the Toronto MLS® system. This would account for the down town core and everything between Dufferin and Victoria Park, South of Steeles, with the DVP as the eastern boundary south of Eglinton Ave. That is an increase of 24.3% over last year's 1,279 Toronto homes sold.
The average sold price in the Toronto Central districts was $470,464 up 9.9% from July 2006's $428,031 and the median home sale prices in central Toronto raised from last years $313,200 to $334,500. The one thing that Toronto still has is variety. The average home sold prices vary widely from district to district. The lowest average sold price was $329,339 in the C8 district which is predominantly condominiums. Where as the highest average home sold price was in the C12 district with and average home sale price of $1,442,216.
So far, in 2007, there have been 10,591 homes sold in the central
Toronto real estate markets which is up 12% from last years 9,450. Even with the potential new land transfer tax, that may get the go ahead if the City or Toronto does not figure another way to fix their budget issues, the real estate markets are booming with a sales to active listings ratio of 64.7% in July 2007 for the central Toronto districts.
It is still a great time to buy or sell Toronto real estate. Please let me know if you are looking for
Toronto, Ontario, homes for sale or if you want to
sell you Toronto home or condo fast.
