Mid Month Market Watch

I just realized it's the end of the month and I haven't discussed the real estate numbers during the first 14 days of July 2012. I guess time just got away with me and this month blew by really fast, which means summer is almost over :( On the bright side, the numbers are positive (despite of what the media is saying) so lets take a look at them...

• 3,679 sales reported through the MLS during the first 14 days of July 2012, a 5.6% increase when compared to July 2011
• Average selling price in the GTA is...$473,466, up 2.3% when compared to the same time last year
• Average selling price in the 416 area is...$496,645, up 3.5% when compared to the first 14 days of July 2011

Notable News:

• Price growth was strongest in the City of Toronto
• New listings were up 14.4% over the same time frame
• Housing demand strong in the regions surrounding the City of Toronto

 Although new listings were up when compared to last year, I still believe that the reason why price growth was the strongest in the City of Toronto is due to a lack of listings in the low rise single family home sector, in downtown Toronto. Recently when I've been doing searches for clients in neighbourhoods just north of Bloor heading south, it's slim pickings! There is still a shortage of good quality listings out there, making it a good time to sell while most potential Fall sellers are on vacation. On average homes sold for 98% of list price during the first 14 days of July and took on average of 25 days to sell, these are all positive numbers! What summer slow down you say? Also keep in mind that these numbers are being compared to last year, which was a record year for real estate in general.

Now, let's discuss all the attention that the surrounding regions have been getting. To start off with the hustle and bustle of downtown Toronto is not for everyone. For a growing family that's looking for a lot more space and something easier on the pocket book, may look outside of Toronto to get more bang for their buck. Also buyers are more reluctant to purchase in Toronto due to the extra costs associated with the Toronto Land Transfer Tax and sellers are hesitant to list, especially if they want to stay in Toronto. A lot more sellers are choosing to stay and renovate and who can blame them?

All these factors help to paint a true picture of what's going on in the Toronto real estate market and help explain the reasoning behind the numbers that are being reported by TREB. Jason Mercer, Senior Manager of Market Analysis at TREB is predicting a better supplied market causing a slower annual rate of price growth for the second half of 2012. Will this actually come into fruition or are we just gearing up for a really strong Fall market? I guess only time will tell and you bet I'll have my 2 cents on it.

What do you think?

Monthly Newsletter: July

This month I'm going to do things a bit differently for the newsletter and will continue to do so from now on. We are going to review the overall real estate numbers for the GTA and then look at the numbers specific to Junction Triangle, Wallace-Emerson and Dovercourt Park, so let's start!

GTA:

• 9,422 home sales reported through the MLS in June 2012, the number of transactions were down by 5.4% when compared to the same time last year
• the year-over-year decline was the largest in the City of Toronto by 13% when compared to June 2011
• Average selling price in the GTA is...$508,622, up 7.3% compared to the same time last year
• Average selling price in the 416 area...$554,077, up 8.3% compared to June 2011

Notable News:

• the numbers don't necessarily mean a drop in home values or a down market, there is still a shortage of single family home listings in downtown Toronto, so even if buyers want to buy, there's not much available to buy, which shows in the number of sales
• The Toronto Land Transfer Tax is still a sore spot with a lot of people, including myself, causing buyers to search and buy outside the GTA
• GTA housing market still remains affordable in the GTA according to the new mortgage lending guidelines
• 35% of the average household income is going towards mortgage, principal, interest, property taxes and utilities of an average priced home, which is below Jim Flaherty's affordability ceiling of 39%

Junction Triangle:

• 5 homes sold in the Junction Triangle during June 2012 
• Average price $500,280
• On average these properties took 17 days to sell and sold at 100% of their listing price

Wallace-Emerson:

• 6 homes sold in Wallace-Emerson during June 2012
• Average price $537,417
• On average these properties took 19 days to sell and sold at 110% of their listing price

Dovercourt Park:

• 7 homes sold in Dovercourt Park during June 2012
• Average price $613,286
• On average these properties took 9 days to sell and sold at 107% of their listing price

Do you live in one of these neighbourhoods and are thinking of selling? I think the numbers speak for themselves whether it's a good time or not. There still are lots of hungry buyers out there waiting for listings and yours could be next, I'd be more then happy to discuss this further with you.

Here's a video from Jason Mercer, TREB's Senior Manager Market Analysis discussing the outlook for the remaining year:



What did you think of the statistics by neighbourhood? Want to know what's happening in your neighbourhood, but don't see yours here? Then get on the list to receive your monthly in depth neighbourhood report. All you have to do to get on the list, is visit http://www.torontoweststats.com/, it's that easy! Until next month...

Monthly Newsletter: June

I'm back from vacation and although it's always sad to see it end, I'm glad to be back to work and blogging! May was a really busy month for me as I was rushing to finish my 4th renovation project, which was also featured on Design Sponge, hence the lateness of this newsletter. But better late then never, so let's review the Toronto real estate numbers for May as well as the first 14 days of June 2012.

May 2012 from TREB's report:

• 10,850 transactions reported through the MLS for May 2012, up 11% from May 2011
• Average price in the GTA.....$516,787, up 6.5% from the same time last year
• Average price in the "416" area....$568,768, up 5.9% from May 2011

The biggest sales growth, believe it or not, was in the "905" area. The sales amounted to 6,720 transactions for the month of May 2012, which is a substantial amount, especially when compared to the "416" area which came in at 4,130 transactions for May 2012. There definitely was a shift in May as Toronto prices continued to rise higher and higher, making the "905" look more affordable and better bang for your buck in terms of lot and home size. Also, a recent poll suggested that not only have the lower prices pushed the attention and shift to the "905" region, but the Toronto Land Transfer tax has buyers looking outside of Toronto, said TREB president Richard Silver. You can send a big "thank you" to our mayor Rob Ford, who is still yet to abolish this tax as he promised in his campaign.

Another interesting piece of news from this report was that listings were up substantially when compared to May 2011. We haven't really seen this in the Toronto real estate market for almost 2 years now! Listings rose by more then 20% to 19,177 when compared to a year-over-year basis, said Jason Mercer, TREB's senior manager of market analysis. If new listings continue to grow at this pace, the remaining half of the year will see prices at a more moderate growth rate, which is great news for buyers!

Here's a video with further analysis for the May 2012 market and the remaining year:


We are not done yet! Now that we're up to speed on the May Toronto real estate market numbers, let's look at the numbers during the first 14 days of June 2012 from TREB's report:

• 4,597 transactions reported through the MLS, results that were on par with June 2011
• Average price in the GTA....$516,834, up over 8% when compared to the same time last year
• Average price in the "416" area....$566,527, up over 9% when compared to the first 14 days of June 2011

Listings continued to rise, a trend we observed in May and were up by 16% to 8,382 when compared on a year-over-year basis. What does this mean for the Toronto real estate market going into the second half of the year? Will prices finally moderate after almost 2 years of exceptional price growth and low inventory? At this pace, that will be the case, giving buyers more variety and less pressure. Jason Mercer, TREB's senior manager of market analysis said the following:

"The annual rate of price growth remains very high in the GTA. Increased listings will result in more balanced market conditions over the next year, but it will take some time before price growth will moderate to a more sustainable pace. Right now, months of inventory remains very low from a historic perspective and will likely not climb back to the pre-recession norm until 2013"

Definitely some food for thought, and definitely not anywhere near the doom and gloom the media has been spewing for the last year. The pressure on Toronto prices and inventory will be further pushed by our beloved Toronto Land Transfer Tax, which I will make mention of, once again. A recent poll suggested that 3/4  of people in Toronto and surrounding "905" areas who are planning to move in the next 2 years said they would be more enticed to move outside of the Toronto area due to the extra associated costs with the Toronto Land Transfer Tax, said TREB president, Richard Silver. Do you agree? Are you one of the 3/4 of people in the same boat? Or it is worth it to pay a few thousand dollars more in a real estate transaction for the convenience of living closer to work, the arts, entertainment and culture that Toronto has to offer versus wasting your time and gas in a car traveling 2 hours on average each day. I know my answer is hell ya, but what about you?

Well, that's all folks, let me know your thoughts!

***Image via Top News***

Mid April Market Report

I'm back with more Toronto real estate numbers for you.....are you sick of them yet? Since my last market update, there hasn't been much change. It's still on fire with no signs of slowing down as we proceed into the spring market.

So let's cut straight to the point and review the Toronto real estate market number's from TREB's report:

• 4,557 transactions reported through the MLS during the first 14 days of April, up by almost 7% from April 2011
• In the City of Toronto, new listings for low-rise home types during the first half of April where down when compared to last year
• Average selling price in the 416 area is.......$553,104, up 2% from the same period last year
• Average selling price in the GTA is.......$506,954, up 5% from April 2011

Let's just say that conditions are still favourable for sellers, as I'm sure you are all seeing over the media. The even better news, is that the Toronto real estate market will continue it's upward climb over the next 3 years, as reported by Central 1 Credit Union, with gains predicted at 4% both this year and next. Hopefully, if this prediction comes true, believe me, I'm keeping my fingers and toes crossed being a home owner myself, the average cost of a Toronto home in 2014 would be $523,000!!!! Now you're probably thinking, what about interest rates? There must be a hidden catch, well, the report also made these statements based on a 5 year rate of 5.7% by 2013. As Helmut Pastrick Central 1 chief economist said, "While interest rates are expected to climb further in 2014, they are likely to remain at historic lows".

What about the condo market you say? There has been a lot of bad press recently about an oversupplied condo market, a bubble waiting to burst. During the first 14 days, condos also saw gains that surpassed last years.  The average selling price in the 416 area is $364,516, up 4% since last year. With high demand of renters wanting to live closer and closer to where they work, the condo market will be well stocked for the future demand to come. Let's face it, our population is growing, there are plenty of new immigrants coming into Canada, still and Canada remains an attract country for foreign investors. This is a recipe for success in our condo market. As Helmut Pastrick said, "It looks like that market will perform reasonably well. There may be some oversupplying coming but I think the market will generally handle that....." Pastrick further said, "In fact, with the GTA's population expected to increase by about 45% over the next 25 years, the need to go up, rather then out, is likely to keep the demand for condos steady."

It basically looks like the market is not slowing down anytime soon, so you might as well make the best of it as a buyer, by taking advantage of the historically low interest rates or as a seller and receiving top dollars for your investment. Which side are you on?

Well, I think I've said an earful as usual, so I'm done, for now. What are your thoughts? Would love to hear from!
***Image via Flickr***

It's War!!! Now How Do You Win?

So it's definitely no surprise that bidding wars have become the norm in today's Toronto real estate market. As a buyer, you either prepare yourself to get ahead of the game or sink with the rest of the fish on offer night. As much as bidding wars are very frustrating, as a realtor, I also get an adrenaline kick out of it and must say there is no better feeling then winning one of these wars for my client.

I compiled a list of what to do when preparing for battle. Please note, there are no guarantees, even if you follow all these tips:

1. Research the neighbourhood and see what similar homes have sold for and when they sold, pay extra attention to the homes which are very similar and were listed for the same price as the home you are preparing to bidding on because if the home sold over asking, the sellers will expect the same price minimum, if not higher
2. Once you completed tip #1, ask yourself if you're willing to pay this amount or higher and establish a cut off point where you are willing to walk away comfortably without regret. At the same time remain a bit flexible especially if your offer is in the running and other offers have been sent home
3. Mortgage preapproval, even though this does not guarantee that the bank or CMHC may think what you paid, is what the home is actually worth and what they are willing to lend you, it gives you a general scope of affordability and how you look in the banks eyes
4. Pre-home inspection, if there is a recent one that has been provided by the sellers, then request a copy and go through it in detail, maybe even revisit the home and pay extra attention to the details that caught your eye in the report to gage how bad the problem may be, try even bringing a general contractor
5. If there is not a pre home inspection done already by the sellers or if you think it may be bias and you really want the house, then hire a home inspector before offer night
6. As a buyer agent I always talk to the selling agent beforehand and try to get as much information about the proceedings, the sellers, the house, etc so I can prepare my buyers
7. As a buyer agent, I always call throughout the day to see how many offers are registered and keep my buyers up to date, again to mentally prepare them for the night ahead
8. Try to register your offer as close to the cut off time as possible so that your offer is not used as ammunition for the seller's agent to gain more offers, remember people want what they may not be able to have
9. Bring a certified cheque or bank draft to offer night for at least 5% of the purchase price you're offering, if not higher, the bigger the better as it shows the sellers you're very serious and the seller's agent feels more comfortable advising their clients to accept your offer rather then worrying about chasing after the deposit the next day
10. As a buyer and buyer agent, show up to the offer presentation, again shows the sellers how serious you are and that you want to strike a deal tonight! Try to avoid faxing offers unless the sellers are being very insistent, always request a presentation
11. Further to tip #10, by being there, you can observe the type of people that are bidding on the house and how long the seller's agent is holding the other buyer agents hostage. The quicker one comes out, the worse their offer is, it's all about observation and reading body language
12. Come in strong, sellers hate when people play games and give low ball offers, it's insulting! Your first round should be 80%-90% of the price you're willing to pay. A weak offer may not get a call back for a second or third round, plus if there are a lot of offers to contend with, you want your offer to leave a lasting impression on the sellers
13. Be flexible with your closing date, offer the exact or as close as possible date to what the sellers are looking for, once again, it will make your offer look really favourable
14. Firm offers are always best, meaning no conditions on financing or home inspection, amoung others. If you feel comfortable doing so, then why not? 9 out of 10 sellers will choose an offer that is firm, even if the price is a bit lower because it guarantees them that the house is sold firm once they sign on the dotted line
15. Write a hand written note to the sellers expressing how much you like their home and how excited you are for the possibility of living their with your family.....pull on the seller's heart strings as people make decisions based on emotions all the time and real estate is no different
16. If you're approaching the last round, never offer whole numbers ie. $445,000, offer numbers such as $445,600 or $446,100, (I think you catch my drift here), to separate yourself from the others, I've seen people win bidding wars by $100-$500!
17. Trust your agent, if you don't, then why are you working with them in the first place, this is one of, if not the biggest purchase of your life, by trusting your agent to do the best job possible gives your agent the confidence booster they need to negotiate the s**t out of the offer and potentially win the war!

Just remember as a buyer, to look at the situation from the sellers perspective, constantly. The selling agent is hopefully doing their best to get their client the BEST terms, price and conditions, always!

Let me know if these tips help or if you have any of your own, I would love to hear from you!
***Image via Move***

Mid March Market Report

It's that time again to discuss the Toronto real estate market during the first 14 days of March, but before I share the numbers with you, I just have to say that the market is hot, hot, hot, if you haven't noticed.

Here are the numbers you've been waiting for, from TREB's report:

•  4,215 transaction reported through the MLS during the first 14 days of March, up 7% from March 2011
• Number of listings were down 2% year-over-year, hence all the madness between buyers
• Average selling price in the 416 area is.......$553,536, up 9%  from the same period last year
• Average selling price in the GTA is.............$502,155, up from March 2011

This is great news for all the sellers out there, who saw their homes selling for 100% of asking price and within 3 weeks! If you're a buyer, don't panic yet, although the numbers during the first 14 days of March 2012 reflect strong sellers market conditions, I've been seeing a lot more listings coming on the market in the last half of the month. Sellers have been hit with spring fever as Toronto has been experiencing above average temperatures and are excited about the upcoming spring market, which tends to be the busiest time of year in real estate. So my advice to all you buyers, be patient for just a little while longer as the tide is about to turn.

Also fueling this frenzy of multiple offers and bidding wars has been the current mortgage wars. BMO brought back their 2.99% 5 year fixed rate, which caused the other major banks to follow suit. Borrowing has never been so affordable and buyers are definitely taking advantage as the variable rate becomes less attractive in the long run. Now, before signing on the dotted line, make sure you review and understand the terms and conditions of your mortgage. I know BMO's offer is a "no frills" mortgage meaning, no prepayment privileges and higher penalties then normal for breaking the mortgage before 5 years, among other conditions. Meanwhile RBC started offering the same rate, but with "frills", so make sure to do your homework and choose a mortgage that suits your life now and in the future.

Bottom line, it's a great time to sell, so if you're contemplating that for sale on your lawn, do it sooner rather then later, as who knows where the Toronto real estate market will stand within a couple of weeks let alone next month. Don't forget that I can help you or your referrals, so make sure to contact me with all your questions and concerns. Now, don't get me wrong, it is still predicted to be a strong spring market, but why wait for your competition, when you can beat them to the chase and be the kid on your block that receives top dollars for your home due to low inventory levels. Also, who knows when rates will go up, so take advantage now of the large pool of buyers house hunting and willing to spend the dough!

What are your thoughts? Are you a frustrated buyer or an eager seller? I would love to hear from you!

Monthly Newsletter: March

The Toronto real estate market continues to be extremely busy due to an unusually low inventory of homes available for sale. The pool of 14,546 homes currently on the market is slightly more than 2 months of inventory and that has lead to strong competition between buyers, bidding wars and price increases. In fact, the average price on the Toronto Real Estate Board rose to $502,508 in February, breaking the $500,000 mark for the first time.

Now do not panic! It’s just one month, and these are very unusual market conditions. The market is strong and prices will continue to increase, but certainly not at the same levels as February. As we head into spring and more homes come on the market, some of the pressure on prices will be relieved.

February saw the sale of 7,032 single homes, an 11% price increase over February 2011. After two months, the average price of a home in the GTA stands at $487,254.

While the expensive homes get the publicity, it’s important to realize that many homes are still affordably priced. Of the 7,032 homes sold in February;

4,629 or 66% were under $500,000

3,274 or 47% were under $400,000

1,594 or 23% were under $300,000.

In fact only 6% or 407 homes sold in February were over $1,000,000!  Combined with low interest rates, houses remain affordable for a household earning the average income in the GTA.

Those two factors – availability of reasonably priced property and low interest rates –continue to encourage and allow buyers to enter the real estate market, ensuring a demand for houses and that real estate remains a good investment.

It is still a great time to buy, and I strongly encourage my clients to buy investment properties as Canada and Toronto continue to grow due to immigration and a strong economy.

If you know someone thinking of buying or selling, I would appreciate you letting me know so that I can help him or her. I promise to take extra special care of your referrals!

Have a great March!

Your friend in real estate,

We're Number 3!!!!

I have a treat for you today, Ryan, a consultant for HomeCity, has written a guest post for my blog regarding the Canadian housing market. I couldn't be more thrilled as there are a lot of interesting facts in his article that I hope you will enjoy and learn from.

Here is some background information before Ryan takes over; HomeCity provides their customers with informative data about the local market to help their customers buy or sell their homes. As mentioned above, Ryan is a traveling, mountain biking consultant for HomeCity where he works in a marketing capacity.

Here is Ryan....

The 8^th Annual Demographia International Housing Affordability Survey was released on Monday and it appears Canada has one of the more affordable housing markets in the world.

The survey measured affordability in 325 markets around the world by finding each region's median multiple. The median multiple is found by dividing the average median price of a home by the average annual gross median income for that region.

Vancouver was found to be the second most expensive market in the world, after only Hong Kong. Vancouver received a median multiple of 10.6, meaning that it would take 10.6 years of income to afford a median-priced home. Calgary was the most affordable of all the Canadian housing markets and was found to have a median multiple of 3.9.

On the other side of the spectrum, Windsor was the most affordable Canadian city with a median multiple of 2.2. Average annual gross median income is $149,900 and the median house price is $67,900.

Canada's overall affordability ranked 3^rd on the list after the United States and Ireland.

The survey ranks the affordability of homes so that a median multiple of 3.0 and under are considered affordable. Median multiples of 3.1-4.0 are considered moderately unaffordable, 4.1-5.0 are very unaffordable and 5.1 and over are considered severely unaffordable.

For markets with 1 million or more people, Canada had three that were considered moderately affordable (Calgary, Sherbrooke & Saskatoon) and three that were considered severely unaffordable (Vancouver, Toronto & Montreal).

Last year's survey found Canada to have a 3.4 median multiple. This slight slip to 3.5 means housing markets have been slightly under performing from the same time last year.

Hong Kong was found to be the most expensive area in the world. The United States had the majority of affordable housing markets.  Markets in the United states accounted for 117 of the 128 total affordable markets in the world.

The other countries surveyed include Australia, Ireland, New Zealand and the United Kingdom.

Every one of the least affordable markets surveyed had highly restrictive land use laws in place. These laws tend to raise prices of real estate and depress market growth.

I'm a guest writer who likes writing about property management, real estate Austin Texas and Central Austin homes for sale.

I hope you enjoyed my second ever guest post and if you're interested in writing a guest post, please make sure to contact me.

Have a great weekend!!!
***Image via Ticklebear***

Mid January Market Report

It's that time again for my mid month market report regarding Toronto real estate. I'm sure the numbers will not come as a surprise to you considering we finished off 2011 really strong and it obviously has carried over into the new year.

Here are the numbers for the first 14 days of 2012 from TREB's report:

• 1,506 transactions reported through the MLS during the first 14 days of January, up 6% from January 2011, that's pretty strong!
• Average selling price in the 416 area is....$467,152, up 12% from the same period last year
• Average selling price in the GTA is....$444,473, up 8.5% from January 2011

These numbers indicate that the Toronto real estate market is still hot and very much in a sellers market! No doom and gloom as predicted by the media time and time again, especially with the announcement by BMO (Bank Of Montreal) of a 2.99% 5 year fixed rate, people would be crazy not to buy something and take advantage of this rate for the next 5 years. But before you get too excited about this rate, it does come with some stipulations, one of the more important ones being the amortization rate, which is 25 years and not the 30 years we are use to seeing. This may actually not be a bad thing as our banks want to prevent the same scenario that happened in the US and with a rate this low, people may think they can afford more expensive houses without thinking of the future and that's what we have the banks for.

Which leads me into my next point of discussion. In TREB's report it said that the strongest price growth was for single detached homes in the City of Toronto. The average price in the 416 area code was up by 22% year-over-year, wow!!!  What does that mean? Well considering that we have 9.2 million generation Y (born from 1977-1994) buyers, it seems like, while some of these buyers are entering into the real estate world for the first time via condos, the others are ready to move on and start families, needing more space and a backyard for their kids. This growth is also supported by our historically low interest rates, meaning people think and can, afford more then before. Clearly buyers are taking advantage of the rates, as is indicative by the numbers.

Lastly, a recent study released by Legatum Institute, which measured the world's most prosperous nations, ranked Canada as the sixth best country in the world based on criteria that have an effect on economic growth and personal well being. So if this doesn't have you convinced that Canada is doing just fine, despite all the negativity we have been hearing, then I give up! I'm not saying that we shouldn't watch what we spend and accumulate a lot of debt, but what I am saying is that we should continue to support our banks in their conservative approaches and exercise the same practices in respect to our household finances This will keep our nation going strong and prevent any housing catastrophes. The ball is in our court, so use it wisely.

What are your thoughts?

Monthly Newsletter: January

As 2011 progressed and the demand for houses never abated, we knew we were experiencing an above average year for real estate activity in Toronto. We were right!

The 4,718 homes sold in December brought the total sales in 2011 to 89,347, the second-best year in Toronto's history. Prices continued to rise in 2011 and ended the year at an average $465,412, an 8% increase over 2010's $431,267.

The boundaries of the Toronto Real Estate Board are made up of many smaller communities. Here are some average prices of a few of them:

Toronto West	$474,270	Aurora	$527,065
Toronto Central	$566,589	Markham	$548,989
Toronto East	$392,768	Ajax	$347,075
Vaughan	$567,258	Whitby	$341,819
Richmond Hill	$601,855	King City	$792,591

Even these smaller communities cover vast areas with varying prices and unique neighborhoods. City of Toronto Central covers an area from the Lake in the south to Steeles Ave in the north. That’s why it’s critical to deal with a full time agent who knows your particular neighborhood, like myself, who lives and works in Toronto West.

2011 also marked a new high of listings to sales ratios, as 89,347 of the 146,937 listed homes sold (61%). The list price to sale price remained high at 99% and the average home took 26 days to sell.

 There are many predictions about the economy and real estate prices in 2012. TREB’s forecast for 2012 is for an average price of $485,000, a 4% price growth. These predictions remind me of the weather forecasts, as often wrong as right. Here are the facts as I see them:

• The economy is strong
• Immigration continues at record levels
• The cost of housing is affordable due to low interest rates
• Builders are building smaller units to keep prices down and encourage sales
• Rental rates are similar to the cost of home ownership
• The "boomers" little kids are almost all grown up. Members of Generation Y - a.k.a the "millennials" or "echo boomers" born from 1977-1994 - numbered around 9.2 million in Canada in 2011. They are ready to buy!

These factors will continue to keep the real estate market active and prices will continue to rise. How much? Only the weatherman knows for sure!

What we do know for sure, is right now inventory still remains low and there are plenty of hungry buyers looking to buy before the spring market gets into full gear. Therefore if you're thinking of listing your home or condo, now is the best time to do it, before the March madness comes. So make sure to give me a call to see what your options are.

I leave you with a video from TREB summarizing some key points for the end of 2011 and outlook for 2012:

Have a super 2012, and remember, I am never too busy for your referrals!

Your friend in real estate,

Mid December Market Report

I know this report comes a bit late, but with Christmas just around the corner, it's been pretty crazy here! I figure though it's better late then never, so let's discuss the Toronto housing market and the numbers during the first 14 days of December 2011.


First let's start out by pointing out some numbers from TREB's report:

• 2,699 transactions reported through the MLS during the first 14 days of December, up 11% from December 2010, not bad for what is usually known as a quiet month
• Average selling price in the 416 area is.....$486,414, up 3% from the same period last year
• Average selling price in the GTA is.....$460,967, up 6% from December 2010
• On a year to date basis, sales amounted to 87,407, up 4.3%  compared to 2010

Although all these numbers indicate an increase in home prices this year when compared to last, I would have to agree with Jason Mercer (TREB's Senior Manager of Market Analysis) when he said that the housing market still remains affordable in the GTA. It definitely remains unchanged though, as the market continues to be a sellers market and hasn't really seen a buyers market this year, which has been a bit frustrating! I am still seeing very limited inventory and bidding wars and I think it's going to remain the same in the next few weeks. Which brings me to my next point, what can we expect for 2012?

There has been a lot of talk about the Toronto housing market in 2012 and I feel like majority of the news has been doom and gloom, which I find pretty typical of the media. I mean how many times have we heard negative things over the years about the housing market, freaking out our buyers, making us, Realtors, have to do damage control and then the predictions never materializing. I have one buyer couple that wanted to buy a condo last year, but heard through the media, that prices were dropping in 2011, so they decided to wait, even though I told them differently. Of course, prices never dropped this year and now they are kicking themselves for not buying. The same condo unit they were looking at last year, went up $50,000-$60,000 this year!!! The icing on the cake this month was the article written by Financial Post a couple of days ago with a headline of  "Look for 5% to 10% drop in home prices in first half of 2012", my phone was ringing off the hook with either buyers that I'm working with now and buyers who just recently purchased. Like who writes these articles? Economists who have never worked a day in the real estate field and use models that they plug a bunch of numbers into and get results without actually looking to see what is happening in the day to day market. Yes, I do understand that Canada's housing boom is among the longest in the Western world as reported by The Globe And Mail recently and that something has to give, but I don't think it will be that dramatic as everyone saying it will be. I agree with TREB's president, Richard Silver, when he says, "As this trend continues into 2012, we will see more balanced market conditions". What does "more balanced market conditions" mean? I guess we will have to wait until 2012 to find out, but I definitely do not think the real estate market is heading into bad times. Canada remained relatively strong after the housing crash in the U.S and will continue to remain strong despite what is happening in Europe thanks to our conservative lending guidelines.

The Canadian Real Estate Wealth reported recently that compared to global real estate markets, Canada is mostly average in their housing price gains. Since 1998, home prices in Canada have risen 85%, which you may think is high, but lets take at look at Ireland, which came #1 on the list, experiencing price gains by 330% from 1992-2007. It has one of the largest overall price gains when compared to 12 Western countries. The other leaders are Australia, up 114% since 1996 and the UK up 174% since 1995. So when put into perspective, Canada, as the article says, "...falls in the middle of the pack".  Now keep in mind that I haven't discussed the booming condo market in Toronto, but I will leave that discussion for another day.

Overall, I really believe that the Toronto real estate market will do just fine, if not great in 2012. With the continued low interest rates and Mayor Rob Ford's commitment to repeal the land transfer tax beginning in 2012, as reported by TREB, we will see a continued strong, healthy and balanced market for the upcoming new year. At the end of the day people have to remember that real estate is a cycle and what goes up must come down and vice versa, it's a circle that never ends and always rebounds. Real estate is always the better investment choice then anything else we have out there. For now I'm waiting to ring in the new year with the highs of 2011 and have confidence it will continue into the new year, but I guess only time will tell.

What do you think?

***Image via Really Better Real Estate***

Cheap vs. Rich Housing Markets

On MSN News, I recently came across the 10 least expensive cities and 10 most expensive postal codes to buy in, in Canada. Frankly speaking, I wasn't really surprised at the results, but I thought I would share them with all of you. I know my neighbourhood, the Junction Triangle, definitely did not make either lists, which I guess is a good thing overall, but what I do know is that it's not cheap to live in Toronto and I wouldn't trade it for the world. I know for myself, that I could never live in the suburbs even if it meant having more land and cheaper housing as I'm a city girl at heart and I would want my future children to be as well. Having said that, I also do not need to live in the most expensive neighbourhood either, I hope my future place of residence, somewhere I won't move for a long time, is Palmerston Blvd, a neighbourhood with a ton of history and walking distance to Bloor St and College St (and yes I know it's not super cheap to live there either). Now that I have completely gone off on a rant, here is the information you have been waiting for. I will start with the least expensive cities first. Keep in mind that the average price of a home in the GTA for October 2011 was $478,137 (TREB).

10 Least Expensive Cities To Buy A Home



10. St. Catharines

• October 2011 $243,103
• Change from October 2010 +2.6%

9. London and St. Thomas

• October 2011 $238,963
• Change from October 2010 +2.0%

8. Sudbury

• October 2011 $237,072
• Change from October 2010 +9.1%, wow!

7.  Gatineau

• October 2011 $231,601
• Change from October 2010 +5.9%

6. Sherbrooke

• October 2011 $217,007
• Change from October 2010 +10.1%

5. Windsor-Essex

• October 2011 $175,386
• Change from October 2010 +1.3%

4. Saguenay

• October 2011 $174,653
• Change from October 2010 +3.4%

3. Thunder Bay

• October 2011 $167,424
• Change from October 2010 +26.4%, that's a big jump!

2. Saint John

• October 2011 $161,691
• Change from October 2010 -2.0%, property values went down

And the cheapest city to buy a home is............

1. Trois Rivieres

• October 2011 $154,537
• Change from October 2010 +0.7%

Would you live in any of these cities for the cheaper real estate and potentially more land?

Now here comes the good stuff, where the wealthy Canadians call home......

10 Most Expensive Postal Codes To Buy A Home



10. Kleinburg, Vaughan (L0J)

• Prices $800,000-$6.3 million
• Average Net Worth: $2.5 million

9. Forest Hill South, Toronto (M5P)

• Prices $1million-$13million
• Average Net Worth: $2.5 million

8. Chartwell and Bristish Properties (V7S)

• Prices $2million-$13million
• Average Net Worth: $2.69 million

7. St. Andrew-Windfield West (M2P)

• $800,000-$5.5 million
• Average Net Worth: $2.7 million

6. Horeshoe Bay and Area (V7W)

• Price $850,000-$16 million!!!!
• Average Net Worth: $2.99 million

5. Springbank (T3Z)

• Prices $1million-$6million
• Average Net Worth: $3.1 million

4. St Andrew-Windfield East (M2L)

• Prices $1million-$10million
• Average Net Worth: $3.4 million

3. Rosedale (M4W)

• Prices $1million-$9million
• Average Net Worth: $3.6 million

2. Westmount (H3Y)

• Prices $1million-$4.5million
• Average Net Worth $3.69 million

And the most expensive neighbourhood to buy a home is............

1. Lawrence Park (M4N)

• Prices $1million-$9million
• Average Net Worth $3.8 million

 Do you live in any of these neighbourhoods? If so, can we be friends?