20 offers on a One bedroom Condo?!!!

The market is showing no signs of slowing down. Toronto Downtown is experiencing a dramatic resurgence that has seen prices per square foot flirting with $500!

One agent in my office has been in several offers where 10+ bids were present; one had 20!

Record low rates and the continued further prospect of years of low rates seem to be making Real property a safe bet.

I have advised several first time buyers with low variable rates to up pay their mortgages to at least the current 5 year rate (somewhere in the 4-4.20% range). This way they take advantage of huge principle payments as well as prepare themselves for the inevitable rise in interest rates.
If you are planning on buying, be prepared to be challenged for any reasonably priced property - especially if it shows very well or has some rare feature attached to it.

If you are selling - DO NOT cut corners thinking that 'everything is selling'. Follow a solid marketing plan which includes staging and house preparedness, as well as marketing Beyond the MLS to ensure that you get the most value for your house.

David

GTA REALTORS® Report August Mid-Month Resale Market Figures

In the first two weeks of August, Greater Toronto
REALTORS® reported 3,832 sales – up 27 per cent compared to the first two
weeks of August 2008. The average price for these transactions was up three per
cent year-over-year to $383,796.

"The results for the first half of August indicate that many households in the GTA
remain confident in their ability to purchase and pay for a home over the long
term," said TREB President Tom Lebour.

Year-to-date sales, at 54,303 are up slightly compared to 54,138 in 2008. Average
price, at $385,603 is down by less than one half of one per cent.

"Strong resale housing demand will contribute to broader economic recovery as
each transaction results in substantial spin-off benefits to other sectors of the
economy," explained Jason Mercer, TREB's Senior Manager of Market Analysis.

TREB Statistical Charts

Take a look at the New Listings vs. Sales charts As seen in the first chart, New Listings for June and July lag behind the last four previous years, however Sales are at their Highest point over the last 4 years.

NEW LISTINGS

SALES

This has caused seriously depleted inventory in many locations. A famous Toronto Realtor wrote in his newsletter that finding a decent full two bedroom condo in downtown Toronto below 400k is like looking for the holy grail. Looking for a 2800sqft home in Mississauga in a decent area for below 550k is on par. It is very much a Sellers Market.

However July - August are traditionally lower inventory months. As rumours of higher prices coupled with a normal increase in listings in September and October may bring the market back into balance.

David
(Charts courtesy of TREB)

GTA REALTORS® report resale record in July

TORONTO, August 6, 2009 - In July 2009, Greater Toronto REALTORS® reported a record
9,967 sales, up 28 per cent from July 2008. The average price for July transactions was
$395,414 – up by six per cent compared to the same month last year.

"Households confident in their positioning within the current economic environment have taken
advantage of housing affordability in the GTA," said TREB President Tom Lebour. "The real
estate sector has been one of the sectors making a positive contribution to economic growth in
the GTA, not to mention Ontario and Canada more broadly."

Year-to-date sales, at 50,632 are down 1.2 per cent compared to the first seven months of 2008. Average price, at $385,808 is down by less than one-half of one per cent.

"The steep drop-off in sales experienced at the beginning of the year has all but dissipated,"
explained Jason Mercer, TREB's Senior Manager of Market Analysis. "With five months left to
go in the year, it is probable that total existing home sales in 2009 will be at or above last year’s
level."

Mid Summer Update: Has the Market Stabilzed? Message From TREB President.

July 10, 2009 -- Throughout the next year, I will be bringing you news on the Greater Toronto Area resale housing market and there couldn’t be a more exciting time to be taking the reins as President of the Toronto Real Estate Board.Greater Toronto REALTORS® reported 10,955 sales last month, making it the best June on record. Compared to June 2008 when 8,600 homes changed hands, last month’s sales increased an incredible 27 per cent. The news with respect to house prices is also favourable. The average price of a home in the GTA was $403,972 last month, up two per cent from a year ago when the average price was $395,866.In the City of Toronto there were 4,362 sales compared to 3,481 transactions a year ago. The average price meanwhile, was $441,703 compared to $433,082 last June.In the 905 Region there were 6,593 transactions in contrast to 5,119 sales a year ago, while the average price was $379,008, up from $370,559 a year ago.With 18,704 properties available for sale, June’s active listings were down 30 per cent from a year ago when 26,697 properties were on the market.Limited availability can have a positive effect on the market but it is only one factor in the equation. Most significantly, low borrowing rates continue to make home ownership more affordable. Currently the five-year fixed rate remains at about five per cent.As we move into the autumn months, we may see some seasonal moderation however; June’s numbers demonstrate the GTA resale housing market has weathered the global economic climate with remarkable resiliency.From a broader perspective the news is also encouraging. In Ottawa the province’s second biggest city, housing sales increased 12.5 per cent in June and the average price grew three per cent compared to a year ago.On the national front, the Canadian Real Estate Association reported 49,521 sales in May, within one per cent of last May’s total. The average house price in Canada meanwhile, peaked to a monthly record of $319,757 in May. The Organization for Economic Co-operation and Development, a British based think tank, also expressed cautious optimism with respect to the world economy recently. Its latest report, which covers more than 80 per cent of the world economy, is the first in two years to see previous projections for economic growth revised upwards rather than downwards. After the deepest decline since WWII, global economic activity is showing signs of stabilization and in fact, Gross Domestic Product is expected to increase moderately in all of the G7 nations in 2010.One key concern at home and abroad is employment. Canada’s unemployment rate in May was 8.4 per cent - the highest rate in 11 years, and some forecasts project it to rise to 9.3 per cent by the end of the year. This is favourable though, compared to estimates of a 10 per cent global unemployment rate at the year’s close. Given that we’re all inextricably linked, the most significant factor from a global perspective will be the timing that world leaders choose to scale back economy fuelling measures; doing so too soon could cut off growth while leaving it too late could cause government deficits to skyrocket.From nearly every perspective, the road ahead won’t be completely free of bumps but it can be stated with relative certainty that we can look forward to a much brighter picture in real estate and the economy in general in the months ahead.
Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 28,000 REALTORS® in the Greater Toronto Area.

A great example of why it pays to work with a buyer agent

This weekend I held open house at a very popular property. We carefully researched the price. Recent sales, available comparable properties and market conditions were carefully analyzed. Recent record low interest rates were also considered. After careful deliberation a price was chosen.

The price could have been higher but based on the family’s desire to procure a relatively quick sale we ‘priced to sell’. However we did not price for multiple offers. In fact the home was priced a few thousand higher than the highest sale ever in the neighbourhood, and 17k higher than an inferior home that sold a few weeks previous.

The family left for the weekend, and over the course of the weekend came a steady flow of agents with their clients, open house guests, and many realtor.ca buyers who called me directly.

By Sunday afternoon the impact of this home on the market was shining through. You could see why… www.801applecroft.com. Four agents expressed interest in presenting offers the following evening (Monday).

The moral of this story rests with the half dozen or so Reator.ca (formerly mls.ca) inquiries and open house guests. More specifically the 2 who were more than just bargain hunters.

Both called me Monday afternoon and wanted to revisit the property and perhaps try an offer.

I had to break the news to them that 3 offers were already registered. I also had to ask what must have seemed like intrusive questions coming from a stranger.

1. Have you been to a lender, have you been pre-approved?
2. What sort of down payment?
3. Are you familiar with closing costs/mortgage insurance premiums?
4. Are you familiar with Market Value?
5. Do you have secure jobs (are you landed immigrants? Or can you buy a house in Canada)
6. And a host of other personal questions…

With the flurry of activity surrounding this listing and working with my own buyer on scheduled showings, how in a few hours could I possibly qualify these potential buyers and have them at the table by 8pm Monday evening?

With only a finite amount of time available to me, I passed their information over to my buyer’s agent, who took charge of the situation.

He reported to me that one party was interested in putting in an offer and was not afraid to compete, however he would be coming to the table with sketchy financial information at best.

The reality is, just like we are strangers to them, they are strangers to us. When their offer is presented to the Seller the ‘newness’ of our relationship with this buyer must be disclosed.

On the other hand, I can say that buyers working with buyer agents have been pre-screened by their agent (USUALLY!). Questions 1-6 have been answered well ahead of time. They are prepared to make an informed purchase.

The sellers as well as I took comfort in the words of one of the buyer agents, “I have been working with these buyers for a while now, and you can’t get people more qualified than this couple’.

If you are a buyer out their, doing it on their own, I won’t go so far as to say that you won’t save any money. I have represented ‘sign call’ buyers on many occasions and they have done well for themselves. (They came very prepared).

But in most circumstances a listing’s agents’ loyalty must be with his principle – the seller. The agent can be fair and honest with you, and even represent you. However there are no stead fast rules of engagement; it is different from agent to agent and listing to listing. A buyer without representation is really rolling the dice.

And in this case missed a golden opportunity.

The house sold Monday night.

Beautiful Semi Mississauga - Great Curb Appeal!

But not only Curb Appeal. A really functional layout too. Nice finishings, main floor laundry, hardwoods really bright and airy. Double Door Entry with a soaring ceiling. Rare double garage. Located on an inside corner on a wide lot. Great lot lines make for a spacious yard. Nicely Landscaped.

Close to highways 401 and 403. Missssauga Transit steps away. Minutes from HeartlandShopping Centre. Schools and places of worship nearby. Ten minutes from Downtown Mississauga.

Check out http://www.801applecroft.com/ for lots of photos and more description.

Priced to sell at $359,800

78 Westhead Road ~ Rare Ravine Lot in Alderwood

Renovated and Updated 2 + 1 bedroom Bungalow on a 40 x 146ft lot. Has a walkout to the yard and a Sun room.
- New Roof, Furnace, CAC, and most windows and doors
- Full Height newly finished basement with 3 piece bathroom
- Hardwoods and Laminate Floors
- New interior doors and casings
- CVAC
- Parking for 2-3 cars
- Extra Long Private Yard Steps from Park and Ravine
- Look for Open House info.
- Easy access to QEW/Gardner Expressway and 427 and TTC Transit/Subway
- Close to Sherway Gardens and Cloverdale Mall, Schools, Places of Worship, Outdoor Hockey Rink.
- Up and Coming area = many new builds and major reno's in the area.
- Minutes away from Lake
- asking 397,800
www.78westhead.com for more details

3,681 TRANSACTIONS IN FIRST HALF OF APRIL

3,681 TRANSACTIONS IN FIRST HALF OF APRIL
TORONTO, April 17, 2009 - Greater Toronto REALTORS® reported 3,681 transactions in the first half of April, down seven per cent compared to 3,955 during the same period last year.

“In lock-step with the favorable March results, resale housing market conditions in the first half of April were markedly improved compared to the winter time,” said TREB President Maureen O’Neill.

“Households that were on the sidelines at the beginning of the year are now taking advantage of lower interest rates and lower home prices.”

The average price for MLS® sales was $383,161, down four per cent from $399,117 last year.“The average home price in the GTA stabilized as resale market conditions tightened over the past two months,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis. "Existing home sales increased relative to new listings.”

Good Explanation for the Blip in

The Standoff: Finding that Middle Ground

It's a rainy and cold April Monday in the GTA and the phones have simmered down today. Its given me a few minutes to jot down some thoughts after a very busy two weeks.

Although I have always enjoyed open houses, recent outings have been particularly enlightening. I regularly read up on the latest market trends, and sift through weekly statistics to try to get a leg up and impart sound advice to my clients. These days pinning down anything concrete is proving to be difficult.


Buyers: There are more job losses to come, alot of people are desperate, I'll wait for rock bottom, let's offer considerably less than asking - you never know...(etc.)

Sellers: Interest rates have never been lower, our house is unique so lets list as high as possible because no matter what we list for buyers are going to come in expecting huge discounts...(etc.)

There is truth to both the buyers and sellers pricing rational. But clearly not enough to entrench any unflinching position.

Negotiating a deal between parties once a position has been taken is part of a Realtor's new job description.

I will be posting my top 10 or so best stats from the 653 :) emails, seminars, newspaper articles, other blogs, word of mouth etc. in another post. In the meantime any thoughts?


David

8 Good Reasons why it's a good time to buy property:

1. Historic low interest rates

2. 5% down payments

3. Amortizations can be spread to 35 years

4. Land Transfer tax rebates (Ontario and Toronto) for first time buyers

5. Increase from 20K to 25K for RRSP contribution for first time buyers

6. Federal Government tax credits for closing costs

7. Federal government tax credits for home renovations

8. Ability to add renovation costs to the first mortgage