Following is TREB’s market report for August 2016:
Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® reported a record 9,813 sales through TREB’s MLS® System in August 2016.
While this sales result was 23.5 per cent above the number of transactions reported for August 2015, it is important to note that the majority of sales are reported on working days and there were two additional working days in August 2016 compared to 2015.
When the year-over-year discrepancy in working days is accounted for, the annual percentage change in sales is closer to 13 per cent.
“The conditions underlying strong demand for ownership housing remained in place, including a relatively strong regional economy, growth in average earnings and low borrowing costs. Unfortunately, we did not see any relief on the listings front, with the number of new listings down compared to last year. This situation continued to underpin very strong home price growth, irrespective of home type or area,” said Mr. Cerqua.
The MLS® Home Price Index (HPI) Composite Benchmark for August 2016 was up by 17.2 per cent on a year-over-year basis.
Summer doesn’t officially end until the Autumnal Equinox in the 3rd week of September, but we all know it really ends the day after Labour Day.
Every year, the Tuesday after Labour Day sees the kids go back to school, the white clothes go back into the closet, and the real estate market come back to life after the August slow-down.
A whole slew of new listings hit the market during that first week after Labour Day, and plenty of eager sellers (and realtors) are excited to get the ball rolling.
In my opinion though, it’s a good idea to consider waiting until the following week to list your home for sale.
The goal is to expose the property to as many buyers as possible, but a good chunk of the buyer pool is distracted at this time of year.
There’s so much happening in people’s lives during that first week after Labour Day, that there’s a good chance many of the new listings are going to slip-by unnoticed.
- People are busy getting back into the swing of things at work.
- Anyone working in a seasonal industry is likely focused on transitioning over to their fall market.
- People are coping with the fact that summer’s over and the cold & rainy weather is just around the corner (ugh).
- And then of course there are the families that have small children…
Following is TREB’s market report for June 2016:
Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® reported 12,794 residential transactions through TREB’s MLS® System in June 2016.
This result was 7.5 per cent higher than the 11,905 sales reported in June 2015.
In line with the prevailing trend so far this year, the number of new listings was down by 3.8 per cent.
Back in April, MPAC started mailing out their 2016 property assessment notices to property owners across the province of Ontario. If you don’t have yours yet – keep checking the mail; they should all be out by the fall.
I’ve spoken to a number of clients recently about their assessments, and most are asking the same two questions:
- The assessed value is significantly less than what we know our property is worth. Is this normal?
- The assessed value has increased since the previous assessment. Does the municipality increase my property taxes by the same rate?
These are both excellent questions! Below are my answers.
The market value of your property is very likely going to be higher than MPAC’s assessed value.
While some assessments in the City of Toronto do come-in fairly close to market value, MPAC’s numbers are usually quite a bit lower than what the property would sell for on the open market. Sometimes the difference is quite significant!
It’s not uncommon to see MPAC’s assessed value be hundreds-of-thousands-of-dollars less than the current market value (depending of course on price point, location, etc.).
MPAC relies on a number of factors when doing their assessments, but apparently recent comparable sale prices don’t weigh heavily in the process!
Following is TREB’s market report for May 2016:
Toronto Real Estate Board President Mark McLean announced that there were 12,870 home sales reported through TREB’s MLS® System in May 2016.
This result represented a new record for the month of May and a 10.6 per cent increase over the same period last year.
In contrast, the number of new listings was down over the same time frame by 6.4 per cent.
The decline in listings was experienced in both the low-rise and condominium apartment market segments.
How would you feel if you purchased a home in a particular neighbourhood specifically because of the school catchment, only to find later that your child would actually be going to a different (less desirable) school?
That’s basically what’s happened to a bunch of young families who live in Liberty Village.
Up until April of this year it was understood that Liberty Village was part of the Givins/Shaw catchment.
About halfway through the month though, a letter went out informing everyone of a proposed redistricting. My family got the notice because we live in the catchment (my oldest daughter is starting kindergarten at Givins/Shaw in September, and her younger sister will be following suit in another couple of years).
The letter contained a poorly detailed map showing where the new boundaries would be; the map was vague and had a lot of people unsure of whether or not they’d be affected.
None of us got any real answers until the public meeting that was held a couple of weeks later in early May.
I was at that meeting, and what it all boils down to is this:
Following is TREB’s market report for April 2016:
Toronto Real Estate Board President Mark McLean announced that there were 12,085 sales reported through TREB’s MLS® System in April 2016.
This result, which represented a record for the month of April, was up by 7.4 per cent in comparison to April 2015.
For the TREB market area as a whole, annual sales growth was experienced for all major home types except semi-detached houses.
In the City of Toronto, sales were down for detached and semi-detached houses as well as townhouses on a year-over-year basis.
This dip in sales in the “416” area code was due to a lack of low-rise listings.
Many would-be buyers were not able to find a home that met their needs.
More than once over the course of these past few months, I’ve seen a house come on the market and sell for significantly more than what it was unsuccessfully listed at back in the fall/winter.
You could argue that this makes sense – that in a rising market a house should sell for more now than it would’ve 6 months ago.
Maybe, maybe not. (More on that towards the end of this blog post).
Regardless, it’s interesting to see such a scenario play out in real time with one specific property.
Here’s a breakdown of what happened with one of the houses I’m referring to:
Following is TREB’s market report for March 2016:
Toronto Real Estate Board President Mark McLean announced record TREB MLS® home sales for the first quarter of 2016 following a strong result for March transactions.
There were 10,326 sales in March and 22,575 sales in the first quarter.
The year-over-year growth rate for sales was 15.8 per cent for Q1 2016 and 16.2 per cent for March 2016.
For the TREB market area as a whole, double-digit year-over-year rates of sales growth were experienced for all major home types during the first quarter.
The positive annual growth in sales was not mirrored on the listings front.
The number of new listings entered into TREB’s MLS® System during March and the first quarter were down compared to the same periods in 2015.
I was involved in a multiple-offer scenario last week, on a condo townhouse in the east end.
The property had a helluva view, and there was no doubt that it was going to attract plenty of interest and receive a bunch of offers.
“A bunch” ended up being an understatement.
There were 15 offers. FIFTEEN!
The property sold for 125% of the list price (it was listed at $409,000 and sold for $510,000).
With so many offers and such a high sale-to-list price ratio, you have to ask yourself, “Did they really need to under-list the property by that much?”