"Multiple-Offers" And "Bidding Wars" Don't Always Go Hand In Hand

Last month I wrote a blog post about multiple offers (read it here). Among other things, I noted that having “multiple offers" on a property doesn't always necessitate a "bidding war".

Of the properties I've sold with multiple-offers so far this year, one actually sold for under the list price and another sold for only $100.00 over. (I represented the buyer in both cases).

Both properties sold for close to what other recent sales went for, and neither of these situations came anywhere close to being a "bidding war".

Why?

For starters, both of these properties were condos. It’s true that the condo market has cooled a bit and the buying activity isn’t as frenzied as it was a year ago. (Houses are a different story...).

Secondly, both properties were priced fairly to begin with (as opposed to being intentionally "under priced") and the sellers were allowing for offers at any time (as opposed to scheduling a specific "offer night").

In other words, neither listing was attempting to orchestrate a bidding war scenario and the fact that they happened to receive multiple offers was a matter of lucky timing more than anything else.

Even when there is a scheduled offer night and a property receives multiple offers, the prospective buyers don't always end up in a bidding war.

As long as cool heads prevail and everyone comes to the table with their top number in mind (and the good sense to NOT exceed that top number), then a bonafide bidding war isn't going to happen.

Throw emotion (and deep pockets) into the mix though...

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: March 2013 Statistics

Following is TREB’s market report for March 2013:  Greater Toronto Area REALTORS® reported 7,765 transactions through the TorontoMLS system in March 2013 – down 17 per cent compared to 9,385 transactions in March 2012.

While the year-over-year dip in March sales followed the trend that has unfolded since mid-way through 2012, it is also important to note that the Good Friday holiday was in March this year versus April in 2012.

Generally speaking, there are fewer sales reported on statutory holidays and weekends. In the first quarter of 2013, sales amounted to 17,678 – down by 14 per cent compared to Q1 2012.

"Home ownership remains affordable for a household earning the average income in the Greater Toronto Area. There are many willing buyers in the marketplace today. While some households have put their decision to purchase on hold as a result of stricter lending guidelines or the additional Land Transfer Tax in the City of Toronto, other households simply haven’t been able to find the right house due to a shortage of listings in some market segments," said Toronto Real Estate Board President Ann Hannah.

The average selling price in March was $519,879 – up by 3.8 per cent compared to March 2012. The average price in Q1 2013 was $508,066 – up by 3.2 per cent compared to the first quarter of 2012.

"The average selling price and the MLS® Home Price Index Composite Benchmark was up on a year-over-year basis across most home types, especially in the low-rise market segments where supply remains an issue. TREB's average price forecast for 2013 remains at $515,000, representing a 3.5 per cent annual rate of growth," said Jason Mercer, TREB's Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Multiple-Offers Aren't Going Away Anytime Soon

There was quite a bit of talk in the media this past fall & winter about a real estate bubble and an imminent correction.

Out on the streets though, I think most Toronto realtors would say that they don't see any kind of major adjustment happening.

Did things slow down over the last 6 months? Certainly (although more so with condos than houses). Sale prices levelled-off in some areas and buying activity eased up a bit. The new mortgage rules that were implemented in July had a lot to do with this.

Looking at the first few months of 2013 though, it's the realtors - not the media - who are right once again.

From what I'm seeing, there are plenty of buyers out there right now looking at homes and making offers. And depending on the neighbourhood & quality of product, supply isn't meeting demand.

Two of the last three properties I sold had multiple offers on them.

Remember though, "multiple-offers" doesn't always mean a "bidding war".

Of the two properties I mentioned above, one actually sold for under the list price and the other sold for only $100.00 over.

What multiple-offers do show is that buyer confidence is there.

Many in the industry are predicting a very active spring market for 2013. I don't disagree.

As long as interest rates are low and supply of quality product is tight, multiple-offers aren't going away anytime soon.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: February 2013 Statistics

Following is TREB’s market report for February 2013:  Greater Toronto Area (GTA) REALTORS® reported 5,759 sales through the TorontoMLS system in February 2013 – a decline of 15 per cent in comparison to February 2012. It should be noted that 2012 was a leap year with one extra day in February. A 28 day year-over-year sales comparison resulted in a lesser decline of 10.5 per cent.

The average selling price for February 2013 was $510,580 – up two per cent in comparison to February 2012.

“The share of sales and dollar volume accounted for by luxury detached homes in the City of Toronto was lower this February compared to last. This contributed to a more modest pace of overall average price growth for the GTA as a whole,” said Toronto Real Estate Board (TREB) President Ann Hannah.

“Stricter mortgage lending guidelines that precluded government backed mortgages on homes sold for over one million dollars and the City of Toronto’s additional upfront land transfer tax arguably played a role in the slower pace of luxury detached home sales,” added Ms. Hannah.

The MLS® HPI Composite Benchmark price covering all major home types eliminates fluctuations in price growth due to changes in sales mix. The Composite Benchmark price was up by more than three per cent on a year-over-year basis in February.

“We will undoubtedly experience some volatility in price growth for some market segments in 2013. However, months of inventory in the low-rise market segment will remain low, resulting in average price growth above three per cent for the TREB market area this year.

Our current average price forecast is $515,000 for all home types combined in 2013,” said Jason Mercer, TREB’s Senior Manager of Market Analysis

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: January 2013 Statistics

Following is TREB’s market report for January 2013:  Greater Toronto Area REALTORS® reported 4,375 transactions through the TorontoMLS system in January 2013. This number represented a slight decline compared to 4,432 transactions reported in January 2012.

“The January sales figures represent a good start to 2013. While the number of transactions was down slightly compared to last year, the rate of decline was much less than what was experienced in the second half of 2012. This suggests that some buyers, who put their decision to purchase on hold last year due to stricter mortgage lending guidelines, are once again becoming active in the market,” said Toronto Real Estate Board (TREB) President Ann Hannah.

“It is interesting to note that sales were up for many home types in the GTA regions surrounding the City of Toronto. This is due, at least in part, to the additional upfront land transfer tax in the City of Toronto,” added Ms. Hannah.

The average selling price for January 2013 sales was $482,648 – up by 4.3 per cent compared to $462,655 in January 2012. The MLS® Home Price Index (HPI) Composite Benchmark price was up by 3.8 per cent over the same period.

“There will be enough competition between buyers in the marketplace to prompt continued growth in home prices in 2013. Expect annual average price growth in the three to five per cent range this year,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Are There Deals To Be Had In January?

Earlier this month a I wrote a blog post answering the question, "Is January too early to start looking for a home?" (read it here). Among other things, I mentioned how a buyer might benefit by purchasing a property that's been sitting on the market all through December.

Guess what? Less than a week after that post a client of mine proved my point and snagged a great condo at a steal.

We were still only a few weeks into the new year, but my client was motivated, pre-approved and ready to start looking. His preparation and willingness to jump into the market while most other buyers were still sitting on the sidelines resulted in him scoring a pretty good deal.

Timing certainly played a very big part here. My client was able to take advantage of 3 key factors:

1. The property had been on the market since mid-December (I'll go out on a limb and suggest that one week before the start of the holiday season is not the best time to list a home for sale).
2. The property was listed under market value (to the tune of 5%+).
3. The property had actually sold to another buyer before the holidays, but that deal fell through and it was now back on the market.

I'm guessing that many buyers (and their realtors) missed the fact that the other deal fell through. They likely assumed that the property was now sold and no longer available. Or maybe when it popped back up as available they were still in holiday mode and just weren't ready to start their search up again.

Either way, the property went to a buyer who was still in the game.

Are there deals to be had in January? Yep.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: December 2012 Statistics

Following is TREB’s market report for December 2012:  Greater Toronto Area REALTORS® reported 3,690 sales through the TorontoMLS system in December 2012 – down from 4,585 sales in December 2011. Total sales for 2012 amounted to 85,731 – down from 89,096 transactions in 2011.

“The number of transactions in 2012 was quite strong from a historic perspective. We saw strong year-over-year growth in sales in the first half of the year, but this growth was more than offset by sales declines in the second half. Stricter mortgage lending guidelines resulted in some households postponing their purchase of a home. In the City of Toronto, the dip in sales was compounded by the additional Land Transfer Tax, which buyers must pay upfront,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price in December 2012 was up by 6.5 per cent year-over year to $478,739. The average selling price for 2012 as a whole was up by almost seven per cent to $497,298.

“Robust annual rates of price growth were reported through most months of 2012. Price growth was strongest for low-rise homes, including singles, semis and townhouses. Despite a dip in sales, market conditions remained tight for these home types with substantial competition between buyers,” said TREB’s Senior Manager of Market Analysis Jason Mercer.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: November 2012 Statistics

Following is TREB’s market report for November 2012:  Toronto Area REALTORS® reported 5,793 sales in November 2012 – down by 16 per cent compared to November 2011.

“Transactions have been down on a year-over-year basis since June, after being up substantially in the last half of 2011 and the first half of 2012. Some buyers pulled forward their decision to purchase, which has impacted sales levels in the second half of 2012,” said Toronto Real Estate Board (TREB) President Ann Hannah.

“Stricter mortgage lending guidelines, including a reduced maximum amortization period and a purchase price ceiling of one-million dollars for government insured mortgages, have prompted some buyers to move to the sidelines. This situation has been exacerbated in the City of Toronto because the additional upfront Land Transfer Tax takes money away from buyers that otherwise could be used for a larger down payment,” continued Hannah.

The average selling price was up by 1.6 per cent annually to $485,328. The MLS® Home Price Index (MLS® HPI) Composite Benchmark was up by 4.6 per cent compared to last year.

“The moderate annual rate of price growth compared to previous months was largely due to a different mix in detached home sales this year compared to last, particularly in the City of Toronto. The share of detached homes that sold for over one-million dollars was down substantially, which influenced the overall average price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“The MLS® HPI detached benchmark price, which tracks the price for a home with the same attributes over time, was up by almost six per cent in Toronto, suggesting that market conditions for low-rise homes remain quite tight despite a changing mix of sales,” added Mercer.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Spotlight: "The Bellagio On Bloor"

Some condos are notable because they're located in the heart of a particular neighbourhood. The Candy Factory Lofts on Queen West comes to mind. The Europa building in Little Italy is another good example.

Then there are condos that are notable because they straddle the boundaries between more than one particular neighbourhood. The Bellagio On Bloor is one such condo.

It sits on the north side of Bloor Street East, just east of Jarvis St. You've got downtown to the south, Rosedale to the north, Yorkville to the west, and the Danforth to the east.

I helped a client purchase a suite in The Bellagio a few years ago and the building's location was certainly part of the attraction for her. The fact that it's nestled between all of these great areas is a huge selling feature. Not to mention access to both the Bloor and Yonge/University subway lines is in close proximity as well.

A bit more about The Bellagio On Bloor:

The building was completed in 2002 and there are just under 300 suites in total. The municipal address is 300 Bloor St E. Take a look at the Google Street View map here.

The development team at The Bellagio consisted of Pinnacle International (also responsible for One Pinnacle Centre on Yonge St, 33 Bay Residences, & The Pinnacle on Adelaide, among others) and Mondiale Developments.

The building amenities include 24 concierge, indoor salt-water pool, hot tub, gym, billiards, party room, meeting room, visitor parking, & guest suites. I’ve included photos of some of the common elements below.

                              

                              

If you own a suite in The Bellagio On Bloor and are thinking of selling, feel free to contact me for an evaluation of your property or for more info on my listing services.

If you’re thinking of purchasing a suite in The Bellagio On Bloor specifically, or in the Bloor Street East area in general, feel free to contact me for more info.

Toronto Real Estate Market Report: October 2012 Statistics

Following is TREB’s market report for October 2012:  Greater Toronto Area REALTORS® reported 6,896 transactions through the TorontoMLS system in October 2012 – a decrease of 7.1 per cent compared to October 2011. There were two more business days in October 2012 versus October 2011. On a per business day basis, transactions were down by 15.6 per cent.*

“Sales have decreased in the second half of this year compared to 2011, especially since the onset of stricter mortgage lending guidelines at the beginning of July. The prospect of higher monthly mortgage payments due to the reduced maximum amortization period has prompted some households to delay their home purchase,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price for October transactions was $503,479 – up 6.2 per cent compared to October 2011. The MLS® Home Price Index composite benchmark price, which allows for an apples-to-apples comparison in terms of home attributes, was up by 5.1 per cent.

“We continue to see price increases well above the rate of inflation. Active listings have remained low from a historic perspective, so substantial competition between buyers still exists, especially for low-rise homes,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“It should be noted, however, that the annual rate of price increase has been edging lower over the past few months as the market has gradually become better supplied,” continued Mercer.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Would You Buy A Haunted House?

Every buyer has a list of wants and needs when shopping for real estate.

No home is perfect though and there's always going to be some element of compromise. As the search progresses the question becomes, "What are your deal breakers and what are you willing to bend on?"

Some buyers are willing to stretch the geographical boundaries of their search and consider locations outside of their preferred area if it means getting the size of home they want. Others are willing to give up some outdoor space in exchange for a great interior.

What about a house that's haunted?

Are there actually buyers out there who would seriously consider purchasing a property that was known to have paranormal activity?

Apparently there are. I came across a 2008 article from the Toronto Star about a Meaford, Ontario home that's haunted. At the end of the article the listing agent says he's received calls from potential buyers who tell him that, "moving into a haunted house wouldn't bother them at all."

Seriously?!

Check out the article below...

———————————————————–

Is Meaford Dream Home Haunted?

Toronto Star | By Roberta Avery | October 25, 2008

Rachael Chapman is not easily spooked.

After a fashion modelling career that took her to New York and London, Chapman, 33, travelled the world as a flight attendant before moving to a remote rural area near the Georgian Bay community of Meaford, where she lived alone in an old farmhouse with her young son, Adrian.

"We were miles from anywhere, but I wasn't at all nervous," she says.

Then last year, just before Halloween, Chapman and her partner, David MacLeod, decided to buy a home together.

The older three-bedroom, two-bathroom home they purchased for $164,000 on a tree-lined street just a few minutes' walk from downtown Meaford has a large private backyard, so it appeared to be ideal for Adrian, now 13, as well as MacLeod's 12-year-old son, Brian, and the baby the couple was expecting.

"We thought we had found our dream home," she says.

The family has not lived in the house since May, although they struggle to make the mortgage payments while paying rent on another home, she explains, while reluctantly unlocking the door.

Chapman's self-confident demeanour disappears when she steps into the kitchen that feels icy cold, although it's a warm and sunny October day. The fully furnished house is neat as a pin with children's toys tidily stacked on shelves, an empty baby's crib and family keepsakes and photographs on display.

"We left our things behind because we were scared that we would take whatever it is that's here with us," she says.

Although she loved the home at first sight, there was something about it that made her ask the realtor if anybody had died in the home, she says.

"I was assured that no one had died here," she says.

There is a ground floor master bedroom and another room they decorated as a nursery for their baby, due in January. Upstairs are the two bedrooms she thought ideal for their two boys.

"Shortly after moving into the home, we began to notice strange happenings," Chapman says.

At first the couple tried rational explanations for the loud banging noises from upstairs, which happened at times when all the family and the pets were downstairs.

"We explored the possibility that animals had taken refuge in our attic or that branches could have been rubbing against the house or rooftop, but there was no evidence of any such cause," she says.

The boys were ill at ease and refused to enter certain rooms. One said he woke to a feeling that he was being choked.

"We chalked it up to the children having vivid imaginations and talked to them at length about the inappropriate nature of their stories," she says.

Things began to escalate: appliances and lights turned themselves on and off, things went missing and turned up in strange places. While they slept, a plaster column in the kitchen smashed as if hit by a baseball bat, and also while they slept, their phones called people.

Although they are not religious, in May they asked a minister to bless the house, but after he left, events escalated further. Their cellphones started beeping, indicating there was no signal. Chapman felt that she was being watched and had an overwhelming sense of foreboding.

That night Chapman took Adrian and then-five-month-old Locklyn and went to stay with her mother, who lived a few blocks away. MacLeod initially refused to join them, but just a few hours later, when the furniture started moving and he heard what sounded like a woman screaming when he picked up the telephone, he also left, she says.

Since they moved, neighbours have called them to report lights going on and off in the securely locked home and on one occasion, the hard-wired fire alarms started beeping, although they were disconnected and didn't have battery backup, she says.

Chapman expected her story to be dismissed as unbelievable, but when she started asking around town, she soon discovered the house had a reputation for strange occurrences dating back decades.

"It seems that everyone knew but us," she says.

Chapman's research at the Grey County records office indicates that at least two men died in the home, one who suffered from sleep apnea and choked to death in his sleep, and another who committed suicide in the living room. The county paper records, which go back to 1945, indicate the house has changed hands numerous times, with people rarely staying for more than 12 months, she says.

"That's really odd, because in 1945 people usually bought a home and lived in it for life," she says.

It doesn't take long to discover that, just as Chapman asserts, the house does have a reputation for being haunted. A few inquiries at the local coffee shop turned up several tales of the unexplained, relating to the house, but no one wanted to be quoted.

Meanwhile, Chapman and MacLeod have put the house up for sale for $184,900 in the hopes of breaking even after legal and realtor fees, but so far, prospective purchasers have lost interest once the realtor advises them that the house is haunted, Chapman says.

Legal expert and Star columnist Bob Aaron says that with the exception of Quebec – which has laws requiring disclosure of property stigma – rules for the rest of Canada are weak.

"In general, the rule is caveat emptor, or buyer beware," he says.

Chapman and MacLeod's realtor, Murray Petch, a broker at Wilfred McIntee & Co. Ltd. in Meaford, confirms in a telephone call that he advises potential purchasers there have been reports of paranormal activity in the house.

"I wasn't aware of it, but now I know, I'm obliged to tell," he says. "But it's okay, there are people who say moving into a haunted house wouldn't bother them at all."

If you’re thinking of making a move and would like to know how we can help, feel free to contact us for more info.

Toronto Real Estate Market Report: September 2012 Statistics

Following is TREB’s market report for September 2012: Greater Toronto Area (GTA) REALTORS® reported 5,879 transactions through the TorontoMLS system in September 2012. The average selling price for these transactions was $503,662, representing an increase of more than 8.5 per cent compared to last year.

The number of transactions was down by 21 per cent in comparison to September 2011. However, it is important to note that there were two fewer working days in September 2012 compared to September 2011. The majority of transactions are entered on working days. On a per working day basis, sales were down by 12.5 per cent year-over-year.

“While sales have been lower due to stricter mortgage lending guidelines, we continue to see substantial competition between buyers. The months of inventory trend remains low from a historic perspective, which explains the strong price increases we are experiencing,” said Toronto Real Estate Board (TREB) President Ann Hannah.

September average selling prices were up compared to last year for all major home types. Price growth was strongest in the City of Toronto, including for condominium apartments with eight per cent year-over-year growth. All benchmark home types included in the MLS® Home Price Index (MLS® HPI) experienced year-over-year price increases, with substantially stronger increases for low-rise home types.

“Barring a major change to the consensus economic outlook, home price growth is expected to continue through 2013. Based on inventory levels, price growth will be strongest for low-rise home types, including single-detached and semi-detached houses and town homes,” said TREB’s Senior Manager of Market Analysis, Jason Mercer.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

You Can't Always Tell From The Photos

It goes without saying that high-quality professional photos are an EXTREMELY important part of any realtor’s marketing plan when it comes to selling a property. At least they should be...

I see listings all the time that have cheap, unprofessional photos. Or worse - no photos at all!

Quality aside, what about photos that don’t accurately represent the property?

I recently showed two houses to some clients of mine; one that failed (miserably) to live up to the glory the photos had promised and one that actually turned out to be a real gem, despite what the photos suggested.

With the first house, the photos and virtual tour made the place look immaculate. We stepped inside expecting to see a solid reno in move-in condition. Instead, we found quite a bit of wear-and-tear on the hardwood floors, a half-finished basement, and some major sloping on the second floor.

With the second house, the online marketing made the place look a lot darker and more dated than it really was. We weren’t expecting much and were quite surprised to see just how much natural light there was when we stepped inside.

In both cases, the photos fell short of showing us what the properties truly had to offer.

I’m sure that the photos for the first house brought in plenty of potential buyers. However most of those buyers were no doubt disappointed with what they saw once inside and moved on to the next property on their list.

And I’ll bet the photos for the second house actually scared off a number of potential buyers. Some of those buyers might have considered making an offer if they’d come to see the place in person.

Keep in mind that when you’re searching for properties online, you can’t always tell what's what from the photos. Nothing beats visiting a property in person and seeing for real if the place is as good... or as bad... as the photos say it is.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: August 2012 Statistics

Following is TREB’s market report for August 2012:  Greater Toronto Area (GTA) REALTORS® reported 6,418 sales through the TorontoMLS system in August 2012, representing a year-over-decline of almost 12.5 per cent compared to 7,330 sales reported in August 2011. The number of new listings reported in August was down by 5.5 per cent compared to the same period in 2011.

“Residential transactions were down in August compared to last year. Stricter mortgage lending guidelines, which came into effect in July, arguably played a role. In the City of Toronto, the additional impact of relatively higher home prices coupled with the upfront cost associated with the City’s Land Transfer Tax led to a stronger annual decline in sales compared to the rest of the GTA,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price for August 2012 transactions was $479,095 – up by almost 6.5 per cent compared to August 2011. The annual rate of price growth was driven by the low-rise home segment in the City of Toronto, including single-detached homes with an average annual price increase of 15 per cent. The MLS® Home Price Index (MLS® HPI)* composite index, which allows for an apples-to-apples comparison of benchmark home prices from one year to the next, was up by 6.3 per cent year-over-year.

“While sales were down year-over-year in the GTA, so too were new listings. As a result, market conditions remained quite tight with substantial competition between buyers in the low-rise market segment,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“The trends for sales and new listings are moving somewhat in synch, suggesting that the relationship between sales and listings will continue to promote price growth moving forward.”

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Why Wait Until After Labour Day To List Your Home For Sale?

Why Wait Until After Labour Day To List Your Home For Sale? Photo

Around this time last year I wrote a blog post about why it might be better to wait until after Labour Day to list your home for sale (read it here).

There's always the other side of the coin though, and in that article I noted that there are potential benefits to listing before Labour Day as well. For example, a seller could do well if everyone else was waiting until September and their property was the only one on the market.

A great example of this happened in my office just a few days ago.

A colleague of mine listed a one-bedroom condo for sale on King West. They priced the property at what appeared to be market value and decided to hold-back offers for a few days. Come offer night, there were a total of three buyers at the table!

Three competing offers on your property is better than ideal.  In fact it's more than most sellers can hope for, especially at a time of year when many buyers are deciding to put their search on hold.

There are always a handful of factors that go into any successful sale; pricing, staging, marketing, negotiations, etc. These factors aside, I think that part of the reason the sellers of this condo did so well is that they listed at a time when most other sellers are standing on the sidelines waiting for summer to end.

There's always a bit of risk in deciding to put your property on the market in mid-late August. As the above illustrates though, it's a risk that can sometimes be well rewarded.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Are There Deals To Be Had In The Last Few Weeks Of Summer?

The last few weeks in August are similar to the last few weeks in December in that these are the two times of year when a relatively large portion of the real estate market (buyers, sellers, and realtors) are away on vacation.

Not everyone is out of the game though. We still see listings come on the market right up until Labor Day weekend and Christmas. If you're a buyer who's still actively looking you may be able to take advantage of the timing here.

I say "may" because it's actually quite rare to come across a bonafide "steal" in the Toronto real estate market. There are so many eyes on the listings at all times and nothing is ever going to slip past everyone.

Having said that, I've certainly had buyer clients do quite well by purchasing at the end of summer. They've benefited from the fact that there simply aren't as many other buyers out there actively looking. Less competition.

A property that might otherwise attract multiple offers may only get one. And there might actually be room for a bit of negotiation on the list price (imagine that!).

A handful of the buyers I'm working with at the moment have asked if they should put off the search for now and wait until after Labor Day weekend. My advice is almost always the same in this situation - "There'll be more listings to choose from if you wait until September. But there'll be more buyers to compete with then as well. If something really great pops up in the meantime, don't hesitate to make a move... You may be glad you did."

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: July 2012 Statistics

Following is TREB’s market report for July 2012:   TORONTO, 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.

“Very strong annual sales growth in the first half of 2012 and an earlier peak in sales this spring compared to 2011 help explain more moderate sales this summer. New mortgage lending guidelines and the additional upfront cost of the City of Toronto land transfer tax also prompted some households to put their buying decision on hold,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price in July 2012 was $476,947 – up by four per cent compared to July 2011. The MLS® Home Price Index (MLS® HPI)* composite index, which allows for an apples-to-apples comparison of benchmark home prices from one year to the next, was up by 7.1 per cent year-over-year.

“The GTA housing market became better-supplied in recent months. Buyers benefitted from more choice in the market place, resulting in less upward pressure on the average home price in July,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“The mix of homes sold in July 2012 versus July 2011 also appears to have changed, further influencing the average selling price. This is evidenced by the different annual rates of growth between the overall average price and the MLS HPI®,” continued Mercer.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Spotlight: "Garment Factory Lofts" In The Leslieville Area

Anyone familiar with real estate in the Leslieville area knows that there isn’t much there in the way of residential condos/lofts. The majority of what’s available sits along the strip of Carlaw Ave that runs north of Queen Street East up to Dundas.

Up until just a few years ago, there were only a couple of loft buildings on the strip – the Wrigley Lofts and the iZone Lofts. And even these were a tough sell for some buyers, as the buildings definitely lean more towards the “hard” side of the loft divide.

Since then we’ve seen a handful of new developments spring up in the area; the Printing Factory Lofts, the new Flatiron Lofts, and the Garment Factory Lofts.

The Garment Factory Lofts building is notable for being a combination of original structure and new construction. The original 4 storeys are characterised by restored concrete floors, exposed concrete ceilings, and large warehouse windows. The additional 4 storeys are a combination of glass, steel, and brick. There are just over 150 suites in total.

The building was completed in 2008, there are just over 150 suites in total, and it was developed by Atria Development Corporation (previously responsible for a few residential developments in Oshawa) and designed by Core Architects.

The building sits on the east side of Carlaw, in between the Printing Factory Lofts and the Wrigley Lofts. The municipal address is 233 Carlaw Ave. Take a look at the Google Street View map here.

As for location, you’ve got TTC just steps away (the Queen St streetcar to the south and the Dundas streetcar to the north). There's a Shopper's Drug Mart at the corner and you're not far from a Starbucks, cafes, bistros parks, etc.

The building amenities include security guard, exercise room, party/meeting room, and visitor parking. I’ve included photos of some of the common elements below.

                              

If you own a suite in the Garment Factory Lofts and are thinking of selling, feel free to contact me for an evaluation of your property or for more info on my listing services.

If you're thinking of purchasing a suite in the Garment Factory Lofts specifically, or in the Leslieville Area in general, feel free to contact me for more info.

Ouch! Feeling The Sting Of Flaherty's New Mortgage Rules

There’s been a lot of talk over the last few weeks about how many buyers out there are actually going to feel the sting of the new mortgage rules that came into effect on July 9^th.  While the media has been playing up the severity of the implications these new rules bring, most industry insiders feel that only a relative minority of purchasers will actually have their buying power significantly reduced.

I thought it might be a good idea to shed some light from a realtor’s perspective and take a look at a couple of real world examples.

Example #1

A client of mine was previously looking to purchase a one-bedroom condo in the King West area for somewhere in the $325,000 - $330,000 range.  With the new rules in place, he’s been bumped down to well under $300K.  This means he’s likely going to have to say goodbye to a separate bedroom and settle for a bachelor suite.  Now he’s wondering if renting might be a better option...

Example #2

Some clients of mine were previously looking to purchase a 3-bedroom, 2 bathroom home in the east-end for around $600,000.  With the new rules in place, they’ll likely have to take on a basement tenant if they want to continue shopping for a house in the same price range.  This means that they may have to settle for only one bathroom, since 2^nd bathrooms in these homes are almost always located in the basement.

So, there you go - two real world illustrations of how Flaherty's tightening measures are affecting purchasers in the Toronto real estate market.

I will note that, aside from these two buyers, none of my other clients have been noticeably affected by the new mortgage rules.  They're either purchasing with at least 20% down or they're planning on spending conservatively less than the amount they've been approved for.

What about you? Have you had to reassess your home buying plans as a result of the new mortgage rules?

For access to a Mortgage Calculator and other financial tools, visit my website here. 

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: June 2012 Statistics

Following is TREB’s market report for June 2012:  Greater Toronto REALTORS® reported 9,422 home sales through the TorontoMLS system in June 2012. The number of transactions was down by 5.4 per cent in comparison to June 2011. The year-over-year decline was largest in the City of Toronto, where sales were down by 13 per cent compared to June 2011. Sales in the rest of the Toronto Real Estate Board (TREB) market area were comparable to a year ago.

“Buyers continue to face the substantial upfront cost associated with the City of Toronto’s unfair Land Transfer Tax,” said TREB President Ann Hannah. “Recent polling by TREB suggests that many households are considering home purchases outside of the City of Toronto to avoid paying the Land Transfer Tax. This goes a long way in explaining the disproportionate decline in sales in the City versus surrounding regions.”

The average selling price in June was $508,622 – up by 7.3 per cent compared to June 2011. The mortgage payment associated with the average priced home in June, assuming five per cent down and a five-year fixed rate mortgage amortized over 25 years, would account for approximately 35 per cent of the average household’s income in the GTA after adding property tax and utility payments.

“According to new mortgage lending guidelines set out by Finance Minister Jim Flaherty, the GTA housing market remains affordable. The share of the average household’s income going toward major home ownership payments for the average priced home remains below the 39 per cent ceiling recently announced by Mr. Flaherty,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“The average household in the GTA continues to benefit from a considerable amount of flexibility to account for higher interest rates moving forward,” continued Mercer.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.