If the last year has taught us anything, it’s the 𝘪𝘮𝘱𝘰𝘳𝘵𝘢𝘯𝘤𝘦 𝘰𝘧 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭 𝘤𝘰𝘯𝘯𝘦𝘤𝘵𝘪𝘰𝘯. With so many meetings, gatherings and even family holidays turned into virtual events, we’ve missed out on the sights, the smells, the noise, and the handshakes and hugs. We’ve missed out on these experiences. Technology just can’t replace personal connection.
Similarly, in real estate, so much about a home has to do with the “experience.” The views, the impact of noise from a busy road, the neighbourhood, the smells – all have an effect on the way a house feels. This just doesn’t translate into data and algorithms. 𝗢𝗻𝗹𝗶𝗻𝗲 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻𝘀 𝗰𝗮𝗻 𝗲𝗮𝘀𝗶𝗹𝘆 𝗯𝗲 𝘂𝗽 𝘁𝗼 𝟭𝟬% 𝗼𝗳𝗳, 𝗮𝗻𝗱 𝘀𝗼𝗺𝗲𝘁𝗶𝗺𝗲𝘀 𝗺𝗼𝗿𝗲! which could cost you a lot of money should you decide to work off of the estimate provided.
For accurate information, you need an in-person valuation with someone who knows the local market. You need someone who will actually walk through your home with you, and take the time to understand what you love about your home, updates that you have done over the years, how your home compares to other recently sold homes in your area as well as other details that make it a wonderful place to live. Although technology has taken off over the last decade with video and 3D virtual tours, there is still no better way to get the true feeling of a home without seeing, smelling, and touching it in person. If you’re wondering what your home may be worth in today’s market, don’t hesitate to reach out, even if you are just thinking about making a move. I would love to give you all of the information you need to help you make an educated and smart decision that will help you get top dollar when you decide to sell.
Also known as “off-market” listings, these homes may be for sale but are not listed on the multiple listing services (MLS) or REALTOR.ca. Yes, you read that correctly, the MLS does not account for every property on the market.
Off-market property sales happen more frequently than many people realize. Sellers most commonly choose to list off-market for privacy reasons, or because they want to test their home on the market without any history showing up on MLS should they not sell for the amount they are hoping for. The last thing you want as a seller is for there to be a history of your home not successfully selling as this will give buyers the impression that you are either an unrealistic seller or that there is something wrong with your home which will negatively effect your ability to get top dollar. In this case you could find yourself fighting an uphill battle with not many options other than to accept an offer that is substantially less than you may have obtained had you taken a different listing approach in the first place.
Real estate agents who sell off-market listings must do the legwork and get the word out to find buyers on their own, typically through their network of clientele and other real estate agents as well as making use of other marketing methods that don’t leave behind a long-lasting history of your property being listed.
If you are considering listing your property off market, make sure you discuss with your agent the different marketing methods they will make use of in order to ensure your off-market listing receives maximum exposure. Some of these methods may include various forms of print marketing, open houses, signage and other methods that don’t leave a long lasting history online.
As previously mentioned, many off-market listings are listed in this manner for privacy reasons which is why it is a common listing method for high end homes in neighbourhoods such as the Bridle Path, Rosedale, Forest Hill, Hoggs Hollow etc.
If you are currently house hunting for a new home or plan on doing so in the near future, you may want to ask your agent if they are aware of any off-market listings that may meet your criteria. You could be missing out on your dream home by not doing so.
Are you planning on making a move now or in the near future and have questions about the selling and buying process or the market in general?
Send me a message, I’m happy to answer all of your questions for you.
In the September Market Report, five themes that were driving the Toronto and area marketplace were identified. These themes have become prominent during the course of 2021 and it is becoming evident that they will be the key features of the residential resale market for the remainder of 2021 and into the early months of 2022. These themes, with slight variation, were prominent in the October market data.
1. AVERAGE SALE PRICE
Prior to October, it appeared that the average sale price for all properties sold had plateaued around $1.1 Million, including condominium apartments. In October the average sale price popped up to $1,155,345 (also including condominium apartments), into record territory, and substantially higher than the $968,535 achieved last year, a 19.3 percent increase year-over-year. What drove this unexpected increase? Another key theme, the tension between market demand and supply.
2. DEMAND-SUPPLY TENSION
The demand-supply problem moved beyond critical into a danger zone in October. In October 11,740 properties came to market. That was 34 percent fewer than the 17,806 that came to market last year. Couple that with the 9,783 properties that were reported sold in October, by month-end there were only 7,750 properties in the entire greater Toronto area for sale. Compare that to the 17,313 that were available last year, and it becomes abundantly clear that we are in a dangerously imbalanced zone.
This imbalance will become even clearer when we discuss what’s happening to sale prices as compared to asking prices. With so little supply, and record levels of demand, the problem of lack of supply and affordability becomes acute. Multiple offers are the norm, no longer the exception, and based on the average sale price for October of $1,155,345, buyers competing for the limited number of properties on the market are driving Toronto and area into one of the most expensive cities on the globe.
3. CITY OF TORONTO V. 905
As 2021 winds down to a close, the disparity between the City of Toronto and the 905 region has been dissipating. Beginning in the late spring of 2020, during the height of the pandemic, more and more buyers have been flocking to the 905 region (and to many secondary markets throughout southern Ontario). As 2021 has unfolded, prices in the 905 region have increased dramatically, proportionally faster than those in the City of Toronto, and more recently, the availability of properties for sale has declined to the point where there are now more properties for sale in the City of Toronto than in all the 905 region.
At the end of October, as mentioned above, there were only 7,750 properties available for sale in the entire Toronto and area region. A closer look indicates that 4,247, or almost 55 percent of those properties were in the City of Toronto. That leaves only 3,503 available properties for sale from Burlington to the west, to Innisfil in the north and to Clarington in the east. This is a vast region. The lack of supply in the 905 region is a product of the pandemic, and buyers’ need and desire to have more space, safety and to satisfy their need for security. The ability to work remotely has fuelled and enabled this diaspora, but now the 905 region is without supply and with startlingly higher average sale prices.
At this pace the difference in price, for all housing types, will evaporate. It’s particularly interesting to note the dramatic increase in suburban condominium apartment prices. *October year-over-year increases.
4. LIST PRICES V. SALE PRICES
In October every trading area saw sale prices come in substantially higher than list prices. For the entire greater Toronto area the average sale prices was 107 percent of the asking prices. This includes all reported sales in Halton, Peel, York, Durham, Dufferin, and Simcoe Counties. Effectively the asking price is a point of commencement, and that’s all. Scarcity, location, demand, and auction style sales, will determine the end price. In various locations the percentage of sale price over ask was even higher. For example, all semi-detached properties in Toronto’s eastern trading areas sold for 115 percent of asking price and in an eye- popping 7 days!
It is not surprising that entering the month of November there were fewer active listings of every type of property, except condominium apartments, than were sold in October. In some trading areas the situation is dire. In the greater Toronto area 878 semi-detached properties were reported sold in October. November begins with only 347 available semi-detached listings. Not much choice for buyers, putting further pressure on both availability and affordability.
5. CONDOMINIUM APARTMENTS
Condominium apartment sales continued their resurgence in October. In the City of Toronto, sales were up by almost 34 percent compared to a year ago. Similarly in the 905 condominium apartment sales were up by almost 21 percent to 986 units. Prices followed the rise in sales, increasing by almost 11 percent in the City of Toronto and by 17 percent in the 905 region. Clearly, buyers have overcome their weariness of living in high-rise towers in more dense conditions, or this simply may be due to the fact that compared to ground level opportunities, condominium apartments remain the most affordable housing type and choice.
Like all other housing types, the supply of condominium apartments is declining. At the end of September, there were 3,882 active condominium listings in the greater Toronto area, and 2,918 in the City of Toronto. At the end of October the supply of condominium apartments throughout the entire region had declined by more than 11 percent to 3,440, and by 7.5 percent to only 2,700 in the City of Toronto. The last bastion of affordability and supply is quickly disappearing.
These five themes will sum up the Toronto and area marketplace for months to come. The now more real, looming threat of mortgage interest rates may cause a disruption to these themes. Based on the Bank of Canada’s recent pronouncements we may see rate hikes within the next few months. Rate hikes will have no positive impact on supply, although they will no doubt curb the rising prices that we witnessed in October.
Prepared by Chris Kapches, LLB, President and CEO, Broker, Chestnut Park® Real Estate Limited, Brokerage.
Have questions about the market, selling or buying?
Contact me any time. I’m happy to answer any questions you may have.