Since starting in real estate back in 1980 I’ve seen many ups and downs of the Toronto market over the years – booms, busts and lots of in between.

Almost New Downtown Toronto One-Level 2-Bedroom Suite

In the ‘old days’ before the early 2000’s a traditional Toronto summer house and condo market meant a slow-down of activity and sales… listings would decline, buyers would relax on vacation or stay in because of the heat. 

That all changed over the past several years as increased buyer activity kept the market momentum going strong through the traditional ’slow periods’ of summer and December/January.

However I think buyer fatigue from all the manufactured multiple offers and market frenzy of this spring has caused us to revert to a more traditional summer market!

As of mid-July the Toronto Real Estate Board reported 2,790 sales, down 37% from the same period in 2009.  The average sale price for the period was $427,931 – up a modest 8% from a year ago and down 1.7% from the June 2010 average price.

The listing inventory is 22,886, down slightly from June but up 27.4% over July 2009.

Critically the bellweather ratio of sales-to-listings dropped into neutral market territory for the first time since March 2009 – at mid-month it was at 25.4% (24-28% is a neutral market, below 24% is a buyer’s market and above 28% is a seller’s market).

Thus, for the first time in 15 months buyers have a much better opportunity to negotiate an excellent price for themselves.  Sellers who are moving up or down in the market still benefit on their buying side of the move.

The Bank of Canada moved the bank rate up 0.25% this past week bringing the regular bank’s prime rate up to 2.75% – still very modest.  With many institutions offering Prime minus 0.6% for a variable mortgage, that rate now sits at just above 2%.  Five-year fixed mortgages can easily be had in the low 4’s.

July Toronto Real Estate Market Showing Signs Of A Traditional Summer (For A Change) is a post from: Toronto Real Estate Updates

As far as I’m concerned it had to happen sometime.  The foolishness of ‘manufactured’ multiple offers in Toronto had gone on for far too long and was hurting home buyers, not benefiting house or condo sellers and was wasting a lot of everyone’s time and energy.

Motivated sellers will still get their homes sold and motivated buyers now have more choice in what they would like to buy.

I don’t know how long this blip in the Toronto real estate market is going to last.  In the past few years, the summer market has been as strong as the rest of the year.  In the 1980’s and 1990’s July and August sales were always down – people going on vacation, hot weather etc -  so we might just have reverted to that old traditional marketplace.

So… watch the video, get caught up on the latest Toronto Real Estate Board stats and get a feel for what you should be doing in today’s less stressful real estate market.

Toronto’s Real Estate Market Slows In June… Continuing To Do So In July is a post from: Toronto Real Estate Updates

And the answer is: a lot, according to a new survey by TD Canada Trust. Toronto first-time buyers are looking for all of the extras like additional bedrooms and all of the nicest appliances, but they intend to stick around for a lot longer than first-time buyers have in previous years. Instead of moving repeatedly to find that perfect home, they’d rather buy a home that will last them a longer chunk of their lives the first time.

Toronto first-time buyers are looking for homes that will last.

The TD Canada Home Buyer’s Report shows that most Canadians are looking to pay less than the asking price for new homes rather than older homes or condos. The majority of those surveyed, about 75 per cent, want a newly built home. However, most of these buyers will also stay in the home for a longer period of time.

The cost of down payments is also dwindling, as in Ontario 36 per cent of first-time homebuyers intend to put about 20 per cent down, while across the country only 30 per cent of first-time buyers surveyed intend to put down anything higher.

However, the low down payments and wanting more for less shouldn’t be mistaken for haste, as first time home buyers are doing between eight and 10 months of research and shopping in the country’s hottest markets (like Toronto), taking the time to figure out what exactly they can get. Almost 100 per cent of those surveyed had studied their mortgage options and 91 per cent were pre-approved, but interest rates are still a concern for many first-time homebuyers with about 60 per cent worried about still being able to afford payments if interest rates were to rise.

TD Canada Trust does suggest that homeowners spend a bit more time saving up for a larger down payment, but homeowners are on the right track with regards to being prepared for the “hidden” costs of home buying: 88 per cent of those surveyed had calculated all of their closing costs and 85 per cent had figured out their potential utility fees.

What do first-time Toronto homebuyers want? is a post from: Toronto Real Estate Updates

The Toronto Real Estate Pendulum Is Swinging The Other Way Now

Although sales of Toronto houses and condos were healthy in May, they dropped back to pre-2007 levels for the month.  The listing inventory hit above 25,000 for the first time since the fall of 2008.

This now offers plenty of choice for buyers – something we haven’t seen for over 18 months here in Toronto.

And… just like we encouraged buyers to jump in between October 2009 and March-April of 2009 (and some of you took our advice and took advantage of the market) because of the higher inventory and some great prices, we’re advocating that you do that again right now!

There are sellers out there who’ve already purchased and who are keen to sell.  There won’t be any fire sales but some negotiating can be had.

Watch the Toronto Real Estate Market Report For May video below and learn more about what’s happening in the market and what opportunities await.

Toronto Real Estate Home Sales In May Show Spring Market Is Over is a post from: Toronto Real Estate Updates

Lovely 1.5 Storey 3-bedroom Near Jane & Wilson

As predicted last month, the May preliminary sales numbers show that we’ll have approx 9,330 Toronto houses and condos sales for the month. 

This is the lowest number of sales for the month of May since 2005… remember the 11,146 sales we had in May of 2007?

The listing inventory climbed about 13% to 25,490 homes available in May on the MLS market.  The market-predicting ratio of sales-to-listings dropped to a more reasonable 36.6% – down from almost 56% in the month of March. 

It’s still a ’seller’s market’ (anything above 28%), but it’s certainly not as strong as it was earlier this year and during much of 2009, with many more listing choices available for a buyer.  A neutral market is between 24-28%!

Keep watching this blog for the full May Toronto Real Estate Report coming out shortly!

Toronto Real Estate Market Peaked In April is a post from: Toronto Real Estate Updates

View from our current listing at 81 Navy Wharf Suite 3502

April was another record sales month for the Toronto Real Estate Board but I think we’ve hit the peak right now.  The listing inventory across Toronto and the GTA has increased by almost 25% in the last 45 days and should peak by the end of June.

Hopefully the days of multiple offers on every listing will fade away to a distant memory.  A lot of buyers are fed up with those listing agents who practice that tactic, almost to the point of withdrawing from the market entirely.

The strategy of holding off offers (and listing a home $50,000 or more below market value) has started to backfire on sellers.  Sometimes NO offers come in OR the ones that do are too low for the seller.  The listing agent and seller end up with egg on their face and they have to cancel their listing and relist at the correct market value.

A recent survey showed that just 3.4% of Canadians have firm plans to buy a home in 2010.  Hopefully that number will increase as the market moderates in the coming months!

Remember, housing has been 50% of the driving force to lead the Canadian economy out of the 2008-2009 recession.  With every home sale there are tremendous spin-offs to many local businesses.  Bottom line… the media and other naysayers shouldn’t be so quick to disparage the real estate market, and Realtors… we’re continually playing a vital role in our economic well-being.

A bit of good news came out of CMHC recently – just 0.45% of Canadian mortgages are in arrears now… a very small fraction of those in the same situation south of the border.

So here’s what you’ve been waiting for… the Toronto Real Estate Market Report for April 2010.  Please enjoy!!

Toronto Real Estate Board Market Report For April 2010 is a post from: Toronto Real Estate Updates

March may be the month where the almost year-long drought of listings finally changes.  Although records were set in the month for a number of things, the trend line indicates good news ahead for many buyers.

Toronto’s Real Estate Market Shows Some Encouraging Signs is a post from: Toronto Real Estate Updates

It must be the ’summer’ in the air!  Sales in March totalled 10,430 Toronto houses and condos – these are numbers not typically seen until April or May.  This makes March 2010 a record month for real estate sales in the city.  The closest previous March was way back in 2004 where 9,076 homes changed hands.

Of course this is another example of Realtors manipulating the market – NOT (just a little dig at the Toronto Star and the Globe and Mail newspapers here).  It IS an example of how buyers and sellers are taking advantage of low interest rates to make their move into the market.

New Listings On TREB Have Taken A Jump

With 18,684 listings during the month we were certainly still behind 2009 but that’s not a good comparison because of the recession we were in.  March was still 2000 listings short of 2008 but about on par with earlier-in-the-decade years of 2003 and 2004. 

The nice thing is that listing inventory is finally starting to rise (see chart) as more current home owners take advantage of their move-up opportunities and have more confidence in Ontario’s economy.

The average sale price is taking a jump – up 20% to $434,696 in March 2010 VS 2009 but up a more respectable 14.3% when compared to March 2008. 

This makes it a roughly 7% average increase in sale price each year which is not unreasonable at all.

We’ll have more stats and graphs for you on today’s busy Toronto real estate market within 48 hours.

Record Toronto Real Estate Sales In March AND In The First Quarter Of 2010 is a post from: Toronto Real Estate Updates

Large 1-bdrm + den & solarium overlooking the lake coming for sale in a week

Although the official Toronto Real Estate Board statistics haven’t been released yet, preliminary estimates show that February had record sales above 7,200 houses and condominiums.

The main problem is inventory… there were just over 14,400 listings on the market during the month – down 32% from one year ago (not a reasonable comparison due to the economic situation then) – but also down from 18,000 homes for sale in February 2008.

These days we’re encountering multiple offers due to listing agents deliberately underlisting homes almost 90% of the time!  Not fair to buyers and no real advantage to sellers!

Check back with us by the end of the week for the full Toronto Real Estate Board statistical analysis.

Toronto Real Estate Board Posts Record Sales In February is a post from: Toronto Real Estate Updates

New RE/MAX report shows active listings down in 81 per cent of Canadian markets in January

Lack of inventory will be the greatest challenge facing housing markets across the country this Spring, according to a report released by RE/MAX!

The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16 markets across the country, found that unusually strong activity during one of the traditionally quietest months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. 

The threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the introduction of the new Harmonized Sales Tax (HST) have clearly served to kick-start real estate activity from coast-to-coast, prompting an unprecedented influx of purchasers.

As a result, 87.5 per cent of markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets surveyed.

There have never been so many motivating factors in play at once.  We’re in for a heated Spring market that will, in all probability, spill over into the summer months, as the window of opportunity draws to a close.

The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies.

Markets experiencing the tightest inventory levels include Toronto (- 41 per cent); Kitchener-Waterloo (-33 per cent); Ottawa (- 30 per cent); Victoria (- 30 per cent); Greater Vancouver (- 27 per cent); Halifax-Dartmouth (- 19 per cent); London-St. Thomas (- 18 per cent); Regina (- 16 per cent); and Winnipeg (- 13 per cent). 

Active Listings Are Down Across The Country

Conditions were still balanced, but starting to tighten in Calgary, Edmonton and Saskatoon, particularly in the single-family detached category.

The highest year-over-year sales gains were reported in Greater Vancouver (152 per cent), Kelowna (121 per cent), Greater Toronto (87 per cent), Victoria (69 per cent), Hamilton-Burlington (58 per cent), London-St. Thomas (55 per cent) and Calgary (47 per cent).

Western Canadian cities dominated the list of centres with the highest increases in price appreciation.  These included Victoria at 25.5 per cent, Kelowna at 22 per cent, Greater Vancouver at 19.5 per cent, and Winnipeg at 17 per cent. 

St. John’s (23 per cent) and Toronto (19 per cent) were also among the frontrunners for price growth.

Affordability is the catalyst for the vast majority of purchasers in today’s housing market.  While homeownership is still within reach in many major centres, levels are slipping.  There is a growing sense, on both sides of the fence, that the time to act is now.

While buyers are taking advantage of favourable conditions, sellers too are reaping the rewards.  Competing bids are a factor in the marketplace once again, with well-priced listings—especially at the entry-level price point—experiencing multiple offers. 

Properties priced at fair-market value will likely sell quickly for top dollar.  The overall pressure on sales and price is significant across the board – and it’s not likely to subside unless more inventory comes on-stream. 

The level of frustration is growing, as pent-up demand builds.  For every successful offer, there are those that will walk away empty-handed.   They’re thrust back into the buyer pool and the process starts all over again. 

Some buyers are upping the ante, while others are considering alternate housing options.  Still, purchasers remain cautious in their bids, with most careful not to max out debt service ratios.

Recent revisions to lending criteria will add fuel to the fire in the short term.  Buyers considering a variable rate mortgage will step up their plans for homeownership in the next month or so just to get in under the wire.  In the longer term, buyers will adjust, but move forward. 

Compromise has long been a reality—particularly in the larger centres.  This simply means they may go smaller or further in their pursuits.  

It’s been a 180 degree turnaround from this time last year.  It’s clear that real estate from coast to coast has roared back to life and markets are once again firing on all cylinders.  The vast majority of markets are now recovered and fully-evolved, with all segments working in tandem.  

At the luxury price point, activity was brisk in seventy-three per cent of centres surveyed, with momentum ramping up in the remainder. 

Opportunity exists in some areas, but the question is for how much longer?

Low Toronto Real Estate Inventory Levels Set Stage For Busy Spring Market is a post from: Toronto Real Estate Updates