CategoryReal Estate Trends

Posted May 22, 2014 Real Estate news

Average Toronto detached home sale is over $966k

Recent housing stats released by Toronto Real Estate Board (TREB) show listings and sales are down but, prices are up. According to TREB, the average sale price for a detached home in Toronto is $966,875. For those that have invested in real estate, you’ve done well. For those that are looking to buy, this may not be such good news.. However, there is a bright spot.

TREB also said that affordability has not deteriorated due to low mortgage rates. No doubt that low rates are helping to fuel real estate price increases. If you are waiting for the market to fall and prices to drop, you may want to reconsider that plan. The forecast is for prices to remain strong.

It’s been an interesting year so far. We’ve had a cold Spring, an even colder Winter, and yet the real estate market is red hot. Watch for house sales to remain strong. Trying to time the market can be costly. Just ask those that sold 2, 3 and 4 years ago. There have been many calls to exit the market. I have personally seen some clients sell and rent for the last 2 and 3 years. They are questioning that decision now.

I think buying a home should be a long term investment. Plan to hold for 7 years. That’s a long enough time to live through any up or down housing cycles. If you can stick with that plan, then you should be okay. Don’t buy because you are afraid of missing out. Buy because you need a home and can afford it. Buy because it’s a long-term investment and you have planned and thought it out. Buying to invest is a good idea, you just need to understand what it takes to own and finance a property.

Speak with a team of professionals. You need a good realtor, a lawyer, a mortgage broker, and an accountant. Professional advice doesn’t mean it’s gonna cost you a lot of money either. Professionals usually cost less than you think.. or they get compensated by other parties.. such as realtors and mortgage brokers.. you don’t pay them when you buy a house… The get paid by the seller or the mortgage lender (unless you don’t qualify for a traditional mortgage). The point is, it’s easier than you think.

Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Posted March 25, 2014 Money saving tips

Paying over list price has become normal.. but still requires a cool head.

Here’s a recent article in The Star where I provided some advice and comments on bidding wars.

The trend continues. Properties are selling for above asking price in hot markets across the country. In Toronto, it’s becoming the norm. Some say an epidemic.

Last month I reported on sales that sold for 128% and 138% of list price. We’re talking about selling prices of $1,035,000 and $1,150,000.

A few days later, we saw a home sell for $1,308,808. That’s $479,880 above asking price or put another way, 158% of list price. Sale prices this much above asking are either a clear case of listing too low, in the attempts of attracting multiple offers, with the hope of getting a higher than normal selling price… or, someone is paying way above market value for reasons beyond my understanding.

Continue reading “Paying over list price has become normal.. but still requires a cool head.”

Posted February 26, 2014 Mortgage Rates

158% of List price! Housing market is hot!

Last month a house in Toronto’s west end made headlines when it sold for $200,000 above it’s $639,900 list price. That’s 131% of the asking price. Earlier this week, I shared some astonishing sales from the weekend. Two houses sold for 138% and 129% of asking price. Both homes were in the $1,000,000 plus price range.

Yesterday, this house at 3 Ross St, in Toronto was listed for $829,000. It sold for $1,308,880. That’s 158% of asking price or $479,880. This semi-detached house is located in the College and Spadina area of Toronto. It sits on a 20′ x 116′ lot.

We can debate whether these are sales tactics (you know, list way below market price to attract buyers and create a buying frenzy) or if this means the market has gone crazy. To me, this just reaffirms my belief that this is a seller’s market. There is a pent-up demand for housing. And when the supply is low, higher prices usually follow.

Interesting, yesterday, a report from Tourism Toronto showed in 2103, 9.22million hotel rooms were booked. Up 2.8% from 2012. I’m not sure there is a direct correlation between the visitors and house prices but Toronto has certainly become a world-class city. Maybe our prices reflect that, too?

Your best interest is my only interest. Like this article? Share with a friend. I reply to all questions and I welcome your comments.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Posted February 25, 2014 Mortgage News

2 sales in GTA this weekend went for 128% and 138% of List price!!

Wow, who said the housing market was slowing down? Check this out.. 2 sales from this past weekend in Toronto show the market is red hot!

This house at 455 Manning St is located in the College and Bathurst area of Toronto. It was listed for sale at $749,900. And it sold for whopping $1,035,000 or 138% of list price! This is a 2.5 storey semi-detached home with a 19′ x 126′ lot. Wait, it gets better. The description says, and I quote “Attention Renovators/Investors/Handymen”. A quick look at pics inside leave much to be desired. This place is need of some serious home improvements. All I can say is WOW!

How about this one at 362 Lippincott Street located in the Bathurst and Bloor area of Toronto. Listed at $895,001 and selling for $1,150,000. That’s 128% of list price. The lot is 17′ x 101′. This is a 100 yr old semi-detached Victorian with major updates and renos. It certainly looks nicer than the first. But selling for 128% of list price? I’ll repeat myself, WOW!! Continue reading “2 sales in GTA this weekend went for 128% and 138% of List price!!”

Posted January 20, 2014 Case study

Buy now or wait for house prices to fall? The results may surprise you…

Should I buy now with interest rates still hovering at record lows, or wait for prices to fall? When will house prices fall? … and by how much? What will the interest rate be in the future when house prices fall?

These are the questions most Canadians asking themselves these days. It’s no secret that Real Estate values are at an all time high in most parts of the country. The calls for a housing correction, crash, or bubble have been going on for almost 10 years now but it hasn’t materialized.

I won’t get into the discussion here about whether house values will drop or crash or when that could happen.. because I don’t think it should be part of the buying decision. That’s not a typo. Market timing is a dangerous thing. Stock advisors will tell you this. Buy now, if you are able to commit to the plan. Read on to see why I believe this to be true. Continue reading “Buy now or wait for house prices to fall? The results may surprise you…”