State of Transition

Real estate market is in a state of transition. With more listings coming on the market, higher interest rates and buyers being a bit more hesitant in buying and paying too much we are seeing a readjustment in prices. Those that have bought at the peak of the market are having trouble selling for top dollar. Appraisals for those that paid too much for homes are coming in lower and those that can’t come up with more downpayment and stretched to buy could have a problem on closing. We need to keep pricing and expectations real.
Pricing depends on the property, Although we are seeing prices reflect more what sellers want rather than a lower price to attract interest, this is not a strategy for all properties. Those properties that are highly desirable may do better with a lower price. It all depends what the product is. Marketing and home preparation are key. You need to be the best one out there to sell and get top dollar.

Rental Competition

The rental market in Toronto is hot hot hot… with an influx of Ukrainians fleeing Ukraine they are looking for places to rent. Many are coming with money. Space is at a premium. When rentals come to market they have a number of people who are lined up ready to jump. Sometimes the Ukrainians don’t stand a chance. The competition is fierce and can be discouraging for all.

The group of Ukrainians coming in are also looking for jobs. Most are educated and ready to work hard. The service industry which has been so short on staff should be happy. For many the stay in Canada will be temporary. It won’t be easy.

Cracks in the Market

Taking a snapshot of current market is not that simple. Clients often ask us – if you had to guess what do you think will happen with our real estate market in the next year. This question is difficult to answer.

Currently it appears that the market remains very strong and a number of houses are getting very high numbers. However we have seen a few cracks in ”the crazy market” Not all houses in all areas are getting crazy prices. Some are selling for very rational prices and anything that is obviously overpriced is simply not selling. Condos are selling but are definitely not as hot as houses.

The advice to buyers and sellers is to buy and sell when the time is right for them and not to try and predict the timing. The last couple of years has shown that predicting the future is impossible.

Young Buyers

How will young people be able to afford to stay in Toronto.  With real estate prices increasing at such a fast pace and price of commodities increasing so quickly, salaries are not keeping up. Businesses like restaurants and retail stores can’t afford to hire at such high salaries. We already have a shortage of labour. What will become of Toronto. Well, there is help coming from parents who own real estate in the city and are giving their kids money to put down. That will keep some here. However is that enough. We need more supply and we need immigration. We need a new post Covid strategy.

Co-ownerships

Co-ownership perhaps an option for those not wanting and being able to spend on owning a home in Toronto’s highly priced real estate market. A client called me the other day and wanted to discuss the option of buying a house with 2 apartments and sharing with a friend. The idea sounded good but the realty of co-owning is not simple. So many what happens when… We see co-ownership arrangements happening more and more. Not only is it financially easier but also good for sharing responsibility in looking after a home, perhaps good for company. If all goes well this could work. But what if it doesn’t – lawyers could be busy.

Tight Market

There are very few houses for sale… If you want to buy a house the pickings are slim. In addition, many sellers want a lot of money. Buyers are jumping high but not always high enough. Market is tight and tough. It is sometimes tough to predict how it will go on bidding day – not always easy to guide and sometimes a bit of luck. One must remember that there is always another house and things do generally work out in the end.

Rental Market Heating Up

Rental market in the city is heating up. It’s back to bidding wars for city condos as people start heading back to in person work. The young employees who were working remotely and moved home now need a place to live in the city as employers are calling them back. The subway is not the best option as some companies actually do not want their employees going on the subway due to Covid risks. I can’t imagine the traffic if everyone starts driving downtown. We haven’t even started with a lift on immigration which would also bring an influx into the city.

Happy new year to all!

Happy new year to all! I think this year many of us have reflected on the silver linings that the pandemic has given us. We are grateful for what we have. Sometimes it’s all about the little things. This winter our cauldron and pizza oven gave us much joy. I never knew that pizza in front of a fire in the winter could be so much fun.

I would also like to take this opportunity to thank all my clients and friends who have supported us through the pandemic. Our team has had a record year and I am grateful for that.

Here is to 2021 – may we transfer all that we have learned for a better year.

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