Wednesday, January 17, 2007
Market Watch - 2006 Report and the Year Ahead
2006 at a glance...
In the City of Toronto, 34,404 sales were recorded while the resale market was at its most active, up one percent over 2005. The average price rose five percent from $335,907 to $351,941.
What does this mean for you?
If you're waiting to get into the market until the economy slows down and prices drop then you'll be waiting quite a while, not to mention losing valuable equity and growth in your property value in the meantime.
If you own real estate, congratulations - you are most likely benefiting from the average 5% increase in value in your home.
For years now many people have been saying the market was going to slow down. In general terms, this could be the case. But for a growing city whose real estate is undervalued, values keep increasing.
Here is a snapshot of the average cost of a home in North American cities in 2006:
NOTES: Median sale price for 2,200 sq. ft. residence in low-crime neighbourhood. Specifics: 3+ bedroom, 2½+ bath, attached 2-car garage, 2,200 square foot (190 square metre) residence, on at least a 6,500 square foot (604 square metre) lot.
Montreal $335,200
Calgary $369,300
Toronto $421,500
Atlanta $436,300
Dallas $438,200
Chicago $597,800
Vancouver $609,800
Washington $862,800
Los Angeles $1,187,500
Boston $1,384,100
New York $1,599,300
San Francisco $1,635,200
Source: Economic Research Institute, The Geographic Reference Report 2006
Toronto, compared to other major metropolitan cities and financial centres, is significantly undervalued and affordable. This trend continues if you look at other major cities throughout the world.
Like any economy, there will be valleys and peaks. But historical value increases show that in the long term, it is still better to be in the market than out:
Year - Average Price of Single Family Home
1975 - $57,581
1980 - $75,694
1985 - $109,094
1990 - $255,020
1995 - $203,028
2000 - $243,255
2005 - $335,907
2006 - $351,941
Source: Toronto Real Estate Board MarketWatch - December 2006
What is in store for 2007?
The year ahead should prove to be a busy on if steady activity and value increases of five percent from 2005 to 2006 continue.
TREB president Dorothy Mason states, "This means that prices continue to outpace inflation, making home-ownership a sound investment in today's economy and invariably in the long term."
If you know anyone who is not currently in the market, I hope you'll share this information with them.
Best wishes for a happy and successful 2007!
Don't forget to check out the blog below, "What's Hot and What's Not in Homes for 2007!"
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Check out the following areas to see average prices from December 2006 in your neighbourhood.
Neighbourhood Watch...
E02 -The Beach
(coxwell, danforth, victoria park)
Detached: $528,590
Semi-detached: $386,950
Condo: $288,313
E03 - Danforth (north)
(DVP, victoria park, danforth)
Detached: $353,769
Semi-Detached: $337,850
Condo: $185,100
E01 - Danforth (south) Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $449,929
Semi-Detached: $348,875
Condo:$656,000
C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Detached: $764,022
Semi-Detached: $486,134
Condo: $262,977
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,788,625
Semi-Detached: n/a
Condo: $578,396
C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Detached: $715,356
Semi-Detached: $583,750
Condo: $394,614
C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Detached: $1,611,042
Semi-Detached: n/a
Condo: $255,000
Source: Toronto Real Estate Board December 2006 MarketWatch - for the full report, click here.
Wednesday, January 10, 2007
What's Hot, What's Not in Homes for 2007!
Ever wondered what people are looking for in a home when selling your own place? Have you really thought about what you are looking for in your own search?
Here is a summary of what's hot and what's not in homes for 2007.
source: REM Magazine "What's in , what's out with home buyers" January, 2007
WHAT'S HOT
Upscale Garages
From storage systems, heating, and flooring, garages have evolved!
Two Homes Offices
Work, work, work...people are forgetting the commute and saving their marraiges at the same time.
Heated Patios & Walkways
Tired of maintenance and looking to expand their living space al fresco, baby boomers are investing in this feature.
Snoring Rooms
Need we say more? Again, a great way to save your marriage.
Structured Wiring and Wireless
The ultimate goal, no wires...at least we're getting close. From coaxial TV cable to full home networks centres, you'll need an IT guy for the house.
Mixed Finishes
Who says the island has to match the wall cabinets? Designers are playing with textures and tones.
Selling Strategy
Homes that are priced right and good market timing if possible (spring and summer!).
WHAT'S NOT...
Selling Your Home "AS IS"
There is too much competition and too much to lose financially by not making the effort to do even the basic repairs, cleaning and staging.
Small Bedrooms
Developers tried to maximize profits by increasing the room count but if you can't fit a queen size bed in comfortably, it doesn't count anymore.
Hardwood Laminate Floors
No matter how good quality you buy, buyers can spot them a mile away. You may be saving $ when you put them in but you'll lose even more in the value of your home.
Buyer Strategies
Buyers are generally no longer putting in offers over asking price when a home is listed below market value to generate multiple offers.
In Summary...
Your agent should bring in a home staging professional to maximize your home's value and attract buyers for the 2007 market.
A little invested prior to the sale of a properly priced home will result in a quick sale at it's maximum value!!
Here is a summary of what's hot and what's not in homes for 2007.
source: REM Magazine "What's in , what's out with home buyers" January, 2007
WHAT'S HOT
Upscale Garages
From storage systems, heating, and flooring, garages have evolved!
Two Homes Offices
Work, work, work...people are forgetting the commute and saving their marraiges at the same time.
Heated Patios & Walkways
Tired of maintenance and looking to expand their living space al fresco, baby boomers are investing in this feature.
Snoring Rooms
Need we say more? Again, a great way to save your marriage.
Structured Wiring and Wireless
The ultimate goal, no wires...at least we're getting close. From coaxial TV cable to full home networks centres, you'll need an IT guy for the house.
Mixed Finishes
Who says the island has to match the wall cabinets? Designers are playing with textures and tones.
Selling Strategy
Homes that are priced right and good market timing if possible (spring and summer!).
WHAT'S NOT...
Selling Your Home "AS IS"
There is too much competition and too much to lose financially by not making the effort to do even the basic repairs, cleaning and staging.
Small Bedrooms
Developers tried to maximize profits by increasing the room count but if you can't fit a queen size bed in comfortably, it doesn't count anymore.
Hardwood Laminate Floors
No matter how good quality you buy, buyers can spot them a mile away. You may be saving $ when you put them in but you'll lose even more in the value of your home.
Buyer Strategies
Buyers are generally no longer putting in offers over asking price when a home is listed below market value to generate multiple offers.
In Summary...
Your agent should bring in a home staging professional to maximize your home's value and attract buyers for the 2007 market.
A little invested prior to the sale of a properly priced home will result in a quick sale at it's maximum value!!
Wednesday, November 08, 2006
Oct. '06 Toronto Real Estate Market Report
Despite the water cooler chat that the market is either in a downturn or heading for one, people just keep buying and selling homes in Toronto.
The numbers continue to prove the naysayers wrong...average prices in October rose 2 percent over September and the number of transactions rose 4 percent.
TREB president Dorothy Mason stated "This is a very heathy, active market." Average prices over October 2005 are up four percent with the average home in the GTA at $362,423 compared to $342,450 in 2005.
With mortgage rates nudging down with a posted 5-year fixed rate of 5.1% the market will most likely continue with strength.
Here are the highlights of some districts from the Toronto Real Estate Board's October 2006 most recent market watch:
(Each number represents the average - street parameters are in order of west, north, east, south boundaries.)
E02 -The Beach
(coxwell, danforth, victoria park)
Days on market: 19
% of list: 100%
Detached: $575,698
Semi-detached: $388,501
Condo: $269,3333
E03 - Danforth (north)
(DVP, victoria park, danforth)
Days on market: 24
% of list: 99%
Detached: $381,980
Semi-Detached: $362,474
Condo: $172,100
E01 - Danforth (south) /Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $377,322
Semi-Detached: $376,352
Condo:$339,000
C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Days on market: 28
% of list: 100%
Detached: $812,296
Semi-Detached: $515,613
Condo: $247,500
C09 - Rosedale
(yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,630,667
Semi-Detached: $954,382
Condo: $403,045
C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Days on market: 40
% of list: 98%
Detached: $819,626
Semi-Detached: $447,214
Condo: $451,674
C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Days on market: 33
% of list: 97%
Detached: $1,669,444
Semi-Detached: n/a
Condo: $554,450
All data is from the Torono Real Estate Board October 2006 MarketWatch - for the full report, click here.
The numbers continue to prove the naysayers wrong...average prices in October rose 2 percent over September and the number of transactions rose 4 percent.
TREB president Dorothy Mason stated "This is a very heathy, active market." Average prices over October 2005 are up four percent with the average home in the GTA at $362,423 compared to $342,450 in 2005.
With mortgage rates nudging down with a posted 5-year fixed rate of 5.1% the market will most likely continue with strength.
Here are the highlights of some districts from the Toronto Real Estate Board's October 2006 most recent market watch:
(Each number represents the average - street parameters are in order of west, north, east, south boundaries.)
E02 -The Beach
(coxwell, danforth, victoria park)
Days on market: 19
% of list: 100%
Detached: $575,698
Semi-detached: $388,501
Condo: $269,3333
E03 - Danforth (north)
(DVP, victoria park, danforth)
Days on market: 24
% of list: 99%
Detached: $381,980
Semi-Detached: $362,474
Condo: $172,100
E01 - Danforth (south) /Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $377,322
Semi-Detached: $376,352
Condo:$339,000
C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Days on market: 28
% of list: 100%
Detached: $812,296
Semi-Detached: $515,613
Condo: $247,500
C09 - Rosedale
(yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,630,667
Semi-Detached: $954,382
Condo: $403,045
C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Days on market: 40
% of list: 98%
Detached: $819,626
Semi-Detached: $447,214
Condo: $451,674
C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Days on market: 33
% of list: 97%
Detached: $1,669,444
Semi-Detached: n/a
Condo: $554,450
All data is from the Torono Real Estate Board October 2006 MarketWatch - for the full report, click here.
Monday, November 06, 2006
Why won't my house sell?
My wife was recently on the www.beachestoronto.com chatroom answering a question posted by another beaches resident. Her neighbour's house had been sitting on the market for some time and there were some opinions as to why it had not sold. I shared my opinion as well as some stats from the Toronto Real Estate Board market report via her reply to help answer why a home often won't sell...
"A few things to consider:
1. The actual activity in the market of this area is not far below with this time last year in terms of number of sales so things are still going strong. Although you are correct...you aren't seeing the crazy bidding wars quite as much. Current stats show houses in this area during the month of September (classified as 'E02' on MLS) are on the market for an average of 19 days and sell for 101% of list. Average for days on market has only gone up 2 days. Median price is up to $394,000 for all types of homes compared to $373,500 last year. For detached homes it was $506,000 last year and $600,000 now!
2. Overall, three primary elements are going to sell a home - and true, there are some that don't matter to everyone - but generally speaking, we're talking about Location, Condition and Price. If a home shows beautifully, has a great location, but isn't selling, it's usually overpriced. Net net, if you can't adjust location, and the home shows beautifully, then the price needs to be looked at.
You've all probably heard this time and time again but it's true. Many home owners think their home is worth more or have been pursuaded by an agent that it is worth more to get the listing. They want to take a shot at a higher price and see if they can get it.
Unfortunately, the house sits on the market and doesn't sell. Why? Most people and agents search by MLS to scope out what is in their price range. If yours is listed above that range, they likely won't see it. Second, even if they do see an ad or a flyer, they are going to compare it to other homes that are priced properly in that range and it will pale in comparison. Many people ask why a buyer won't just put an offer in. Given the effort, emotional commitment etc. that you get into once you start that negotiation process, unless you realistically think it's going to result in a sale, most people don't want to get into it. Then, the price may get adjusted to the market later but now the house is 'stale'. People wonder what is wrong with it and they've lost the momentum and interest of a new listing.
Case in point. My husband just worked with a client that listed with another agent in the spring who priced it above market. It sat and sat, they dropped the price, and it still didn't sell. They decided to work with him this time based on a referral so it went back on the market last week, priced appropriately (and brought in a stager to make sure it showed as well as possible). It sold in one day above asking price and above what the reduced price had been in the spring. Your agent has to do their homework (they should be providing you with a full comparative market analysis) to ensure you get the best possible price within the current market.
Net-net, the market in this neighbourhood is still going very strong but as long as people respect market values, use the right pricing strategy depending on their goals, and ensure they do everything possible to make sure their home appeals to buyers, then you should have success.
In terms of forecasting the market, no one has a crystal ball and people have been predicting for years that the market is going to slow down - the numbers above are clearly contradicting this. Toronto as a city is undervalued. It depends on your interests...are you getting into the market for the short or long term? The Beach in particular will be somewhat sheltered from any market drops because of it's location. Yes, as interest rates rise buyers will be more hesitant to jump in but overall, better to be in the market than out.
"A few things to consider:
1. The actual activity in the market of this area is not far below with this time last year in terms of number of sales so things are still going strong. Although you are correct...you aren't seeing the crazy bidding wars quite as much. Current stats show houses in this area during the month of September (classified as 'E02' on MLS) are on the market for an average of 19 days and sell for 101% of list. Average for days on market has only gone up 2 days. Median price is up to $394,000 for all types of homes compared to $373,500 last year. For detached homes it was $506,000 last year and $600,000 now!
2. Overall, three primary elements are going to sell a home - and true, there are some that don't matter to everyone - but generally speaking, we're talking about Location, Condition and Price. If a home shows beautifully, has a great location, but isn't selling, it's usually overpriced. Net net, if you can't adjust location, and the home shows beautifully, then the price needs to be looked at.
You've all probably heard this time and time again but it's true. Many home owners think their home is worth more or have been pursuaded by an agent that it is worth more to get the listing. They want to take a shot at a higher price and see if they can get it.
Unfortunately, the house sits on the market and doesn't sell. Why? Most people and agents search by MLS to scope out what is in their price range. If yours is listed above that range, they likely won't see it. Second, even if they do see an ad or a flyer, they are going to compare it to other homes that are priced properly in that range and it will pale in comparison. Many people ask why a buyer won't just put an offer in. Given the effort, emotional commitment etc. that you get into once you start that negotiation process, unless you realistically think it's going to result in a sale, most people don't want to get into it. Then, the price may get adjusted to the market later but now the house is 'stale'. People wonder what is wrong with it and they've lost the momentum and interest of a new listing.
Case in point. My husband just worked with a client that listed with another agent in the spring who priced it above market. It sat and sat, they dropped the price, and it still didn't sell. They decided to work with him this time based on a referral so it went back on the market last week, priced appropriately (and brought in a stager to make sure it showed as well as possible). It sold in one day above asking price and above what the reduced price had been in the spring. Your agent has to do their homework (they should be providing you with a full comparative market analysis) to ensure you get the best possible price within the current market.
Net-net, the market in this neighbourhood is still going very strong but as long as people respect market values, use the right pricing strategy depending on their goals, and ensure they do everything possible to make sure their home appeals to buyers, then you should have success.
In terms of forecasting the market, no one has a crystal ball and people have been predicting for years that the market is going to slow down - the numbers above are clearly contradicting this. Toronto as a city is undervalued. It depends on your interests...are you getting into the market for the short or long term? The Beach in particular will be somewhat sheltered from any market drops because of it's location. Yes, as interest rates rise buyers will be more hesitant to jump in but overall, better to be in the market than out.
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