I am attaching an article posted in the Globe and Mail about the Real Estate market in the US. With the US market starting to turn around, this can only make the Toronto Real Estate market get even hotter.
J.W. Elphinstone
New York — The Associated Press
Published on Tuesday, Oct. 27, 2009 9:11AM EDT
Last updated on Tuesday, Oct. 27, 2009 10:16AM EDT
U.S. home prices rose for the third straight month in August, data Tuesday showed, a key sign for a broad and sustained housing recovery.
The Standard & Poor's/Case-Shiller home price index of 20 major cities climbed 1 per cent from July to a seasonally adjusted reading of 144.5. While prices are down 11.4 per cent from August a year ago, the annual declines have slowed since February.
Prices are at levels not seen since August 2003 and have fallen almost 30 per cent from the peak in May 2006.
The latest index shows a widespread turnaround with prices rising month-over-month in 15 metro areas since June.
“If the increases are consistent across the markets, this is key,” said Wharton School real estate professor Susan Wachter before the index was released. “Then we're seeing the formation of a bottom.”
However, Ms. Wachter along with other industry experts still worry that rising unemployment and more foreclosures could stifle the rebound. Another unknown is whether a temporary federal tax credit for first-time buyers will be extended to help boost sales.
First-time home buyers can receive a credit of 10 per cent of the sales price, up to $8,000 (U.S.). The real estate industry is lobbying Congress to extend the credit past the Nov. 30 deadline. Top Democrats in the Senate are pressing a plan that would prolong the credit but gradually phase it out over the next year.
Not all metros posted gains in August, though. Prices in Las Vegas, Seattle and Charlotte, N.C., all fell to their lowest levels in August. Prices in Las Vegas have plunged by 56 per cent since peaking in April 2006, the largest peak-to-trough decline of all 20 cities.
Toronto Homes for Sale | Toronto Real Estate Agent
Tuesday, October 27, 2009
Thursday, October 22, 2009
Toronto Star Article on Toronto Homes for Sale
Below is an article from the Toronto Star that might help explain what is currently going on with homes for sale in Toronto:
Analysts forecast near-record home sales in 2009
October 20, 2009
Tony Wong
BUSINESS REPORTER
Consumers can expect to be barraged with some headline-grabbing record home sales numbers over the next few months. But don't forget to put them into context, say analysts.
Last September, investment bank Lehman Bros. filed for the largest corporate bankruptcy in history, setting off a global credit crunch that seized markets. Consumer confidence waned in October, as buyers put off buying a home and the country slipped into recession.
"The markets completely froze. No one was buying anything," said Sal Guatieri, senior economist at BMO Financial Group. "So this year, the numbers are going to look really good in comparison."
The first of the favourable year-over-year real estate numbers came out Monday, showing home sales increased a hefty 34 per cent in the first two weeks of October, from the same period a year earlier.
The Toronto Real Estate Board reported 3,631 sales in the first half of the month versus 2,700 the year ago. Average price was up 17 per cent to $414,475.
"People were starting to get anxious about the housing market in October of last year, and then it was just terrible in November and December. So you'll see a lot of positive numbers for the rest of the year," said Toronto housing analyst Will Dunning.
Much of the current demand is driven by sales in Toronto where buyers have bid up prices on homes in choice neighbourhoods.
The City of Toronto average price was $455,001 while the 905 average price was $386,311.
Much of this year's buying activity has been from young first-time home buyers attracted by low interest rates.
Year to date, sales are up 6 per cent from 2008. Also, analysts expect this year to be the second best on record, with the peak year being 2007.
A recent bump in the five-year mortgage rate by most major banks of 0.35 percentage points last week will likely pull some pre-approved buyers forward this year, says Dunning.
TREB says a lack of listings will contribute to tight market conditions going into the fourth quarter. But more listings are expected in 2010 as consumers regain confidence and list their homes while buying move-up properties.
Meanwhile, a survey by TD Bank Financial Group released Monday says buying a house in the city, as opposed to condos or town homes, is still preferred by the majority of Canadians.
That typically means fixer-upper homes for young Canadians (18-34) because of cost. About 35 per cent of young people chose a home they planned to fix up.
"Buying in the city often means choosing an older home that needs work, so many are looking at renovating soon after they purchase," said TD Bank.
But paying off the mortgage does not have the same priority with younger Canadians according to the TD poll.
Fewer than half (49 per cent) of young Canadians agree that paying off the mortgage is a priority, even though it is for 64 per cent of those 55 and older.
I think this article sums up what is going on in the market and will help explain the situation with their search for homes for sale in Toronto and the GTA.
Toronto Homes for Sale | Toronto Real Estate Agent
Analysts forecast near-record home sales in 2009
October 20, 2009
Tony Wong
BUSINESS REPORTER
Consumers can expect to be barraged with some headline-grabbing record home sales numbers over the next few months. But don't forget to put them into context, say analysts.
Last September, investment bank Lehman Bros. filed for the largest corporate bankruptcy in history, setting off a global credit crunch that seized markets. Consumer confidence waned in October, as buyers put off buying a home and the country slipped into recession.
"The markets completely froze. No one was buying anything," said Sal Guatieri, senior economist at BMO Financial Group. "So this year, the numbers are going to look really good in comparison."
The first of the favourable year-over-year real estate numbers came out Monday, showing home sales increased a hefty 34 per cent in the first two weeks of October, from the same period a year earlier.
The Toronto Real Estate Board reported 3,631 sales in the first half of the month versus 2,700 the year ago. Average price was up 17 per cent to $414,475.
"People were starting to get anxious about the housing market in October of last year, and then it was just terrible in November and December. So you'll see a lot of positive numbers for the rest of the year," said Toronto housing analyst Will Dunning.
Much of the current demand is driven by sales in Toronto where buyers have bid up prices on homes in choice neighbourhoods.
The City of Toronto average price was $455,001 while the 905 average price was $386,311.
Much of this year's buying activity has been from young first-time home buyers attracted by low interest rates.
Year to date, sales are up 6 per cent from 2008. Also, analysts expect this year to be the second best on record, with the peak year being 2007.
A recent bump in the five-year mortgage rate by most major banks of 0.35 percentage points last week will likely pull some pre-approved buyers forward this year, says Dunning.
TREB says a lack of listings will contribute to tight market conditions going into the fourth quarter. But more listings are expected in 2010 as consumers regain confidence and list their homes while buying move-up properties.
Meanwhile, a survey by TD Bank Financial Group released Monday says buying a house in the city, as opposed to condos or town homes, is still preferred by the majority of Canadians.
That typically means fixer-upper homes for young Canadians (18-34) because of cost. About 35 per cent of young people chose a home they planned to fix up.
"Buying in the city often means choosing an older home that needs work, so many are looking at renovating soon after they purchase," said TD Bank.
But paying off the mortgage does not have the same priority with younger Canadians according to the TD poll.
Fewer than half (49 per cent) of young Canadians agree that paying off the mortgage is a priority, even though it is for 64 per cent of those 55 and older.
I think this article sums up what is going on in the market and will help explain the situation with their search for homes for sale in Toronto and the GTA.
Toronto Homes for Sale | Toronto Real Estate Agent
Friday, October 16, 2009
14 IMPORTANT FACTS TO CONSIDER BEFORE YOU TRY TO SELL YOUR OWN HOME WITHOUT USING A TORONTO REALTOR
Occasionally, one can see "For Sale By Owner" signs or in ads in the “houses for sale in Toronto” section of newspapers and websites, and some owners think that selling their own home will not only save them money, but believe they have an advantage over the sellers that have their home listed by a Toronto Realtor© . Before you decide to take on this very important and legally complicated process…remember not even most Real Estate Lawyer's recommend selling your own home yourself in today's market. Here are a few of the reasons why:
1. You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate) which theoretically means your home will take ten to fifteen times longer to sell on the market.
2. The longer a home is on the market the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long... there must be something wrong with the home.
3. The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor... and the offer automatically will follow. Remember that the buying process begins after they leave your home. If a real estate sales representative does not represent the buyer, and they are looking on their own…they usually leave the home and start to talk themselves out of the buying process. If the buyer is represented by a Toronto Real Estate Agent, they are trained on how to overcome buyers remorse--a very common occurrence.
4. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home… selling means exposure. You need the maximum exposure possible, to generate the highest price possible.
5. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid FSBO properties.
6. Lack of negotiating experience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.
7. The majority of qualified buyers are working with experienced real estate professionals.
8. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.
9. As most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.
10. Expected savings in broker's fees will also be greatly reduced if you offer a selling commission to entice real estate sales representatives to bring potential buyers.
11. If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer's fees will be considerably higher.
12. Only real estate sales representatives have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to real estate sales people. Further, real estate sales representatives are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.
13. You only pay the commission to the real estate broker, if they successfully sell your home at the price you are happy with.
14. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually always have problems on closing. At times, expecting the Buyers and Sellers Lawyer's to fight it out or resolve the problems, can sometimes mean the deal is lost. This is the time that your experienced real estate professional, can be the most important. Your Toronto Realtor© can act as a great mediator. Lawyers MUST act only on their client's instructions and are not paid to negotiate.
1. You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate) which theoretically means your home will take ten to fifteen times longer to sell on the market.
2. The longer a home is on the market the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long... there must be something wrong with the home.
3. The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor... and the offer automatically will follow. Remember that the buying process begins after they leave your home. If a real estate sales representative does not represent the buyer, and they are looking on their own…they usually leave the home and start to talk themselves out of the buying process. If the buyer is represented by a Toronto Real Estate Agent, they are trained on how to overcome buyers remorse--a very common occurrence.
4. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home… selling means exposure. You need the maximum exposure possible, to generate the highest price possible.
5. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid FSBO properties.
6. Lack of negotiating experience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.
7. The majority of qualified buyers are working with experienced real estate professionals.
8. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.
9. As most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.
10. Expected savings in broker's fees will also be greatly reduced if you offer a selling commission to entice real estate sales representatives to bring potential buyers.
11. If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer's fees will be considerably higher.
12. Only real estate sales representatives have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to real estate sales people. Further, real estate sales representatives are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.
13. You only pay the commission to the real estate broker, if they successfully sell your home at the price you are happy with.
14. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually always have problems on closing. At times, expecting the Buyers and Sellers Lawyer's to fight it out or resolve the problems, can sometimes mean the deal is lost. This is the time that your experienced real estate professional, can be the most important. Your Toronto Realtor© can act as a great mediator. Lawyers MUST act only on their client's instructions and are not paid to negotiate.
Wednesday, October 14, 2009
Toronto Real Estate Market Conditions Will Affect Your Offer Price
So how will the Toronto Real Estate market conditions affect your offer price?
A hot market is often referred to as a "seller’s market". Many Toronto Real Estate Agents feel that Toronto is in a hot market. During a seller's market, properties can sell within a few days of being listed and there are often multiple offers. Sometimes homes or condos will even sell above the asking price. Though most buyers want to get a "deal" on a home, reducing their offer by even a couple of thousand dollars could mean that someone else will get the home you want.
A slow market is a "buyer’s market". During a buyer’s market properties may languish on the market for some time and offers may be few and far between. Prices may even decline temporarily. Such a market would allow you to be more flexible in offering a lower price for the home. Even if your offered price is too low, the seller is likely to make some sort of counter-offer and you can begin negotiations.
More often than not, the market is simply "steady," or in transition. When a market is steady, no real rules apply on whether you should make an offer on the high end of your range or the low end. You could find yourself in a situation with multiple offers on your desired house, or where no one has made an offer in weeks.Transition markets are more difficult to define. If the economy slows unexpectedly, as it did in the early nineties, people who buy on the high end of a seller’s market (like the late eighties) could find their home loses value for several years. So far, no one has proven reliable in predicting when markets change or how good or bad the real estate market will become but its always best to ask your Toronto Real Estate Agents advise on the subject.
John Muzzin has been a Toronto Real Estate Agent for the past 8 years.
A hot market is often referred to as a "seller’s market". Many Toronto Real Estate Agents feel that Toronto is in a hot market. During a seller's market, properties can sell within a few days of being listed and there are often multiple offers. Sometimes homes or condos will even sell above the asking price. Though most buyers want to get a "deal" on a home, reducing their offer by even a couple of thousand dollars could mean that someone else will get the home you want.
A slow market is a "buyer’s market". During a buyer’s market properties may languish on the market for some time and offers may be few and far between. Prices may even decline temporarily. Such a market would allow you to be more flexible in offering a lower price for the home. Even if your offered price is too low, the seller is likely to make some sort of counter-offer and you can begin negotiations.
More often than not, the market is simply "steady," or in transition. When a market is steady, no real rules apply on whether you should make an offer on the high end of your range or the low end. You could find yourself in a situation with multiple offers on your desired house, or where no one has made an offer in weeks.Transition markets are more difficult to define. If the economy slows unexpectedly, as it did in the early nineties, people who buy on the high end of a seller’s market (like the late eighties) could find their home loses value for several years. So far, no one has proven reliable in predicting when markets change or how good or bad the real estate market will become but its always best to ask your Toronto Real Estate Agents advise on the subject.
John Muzzin has been a Toronto Real Estate Agent for the past 8 years.
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