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.
High Demand + Low SupplyMarket Updates
Higher interest rates and inflation are in the forecast. Everyone is asking how this will impact the real estate market. The answer is we have no idea. Yes higher interest rates and living costs should impact affordability but with such high demand and low supply of housing we are not sure how it will all go. We are not really seeing supply go up substantially and we aren’t seeing demand subside. Increasing supply of housing is not an easy fix as much as government would like to make it so. Perhaps solutions need to be more creative and out of the box.
Job TransfersMarket Updates
Toronto is starting to see job transfers coming in from other countries. As the world opens up we are starting to see people moving to Toronto for work. Toronto is now international hub for many industries. Its also a relatively easy city to live in with so much to offer. With the influx of immigration how will we handle our lack of housing. The rental market and the resale market are already so tight with supply. Where will everyone live? The government appears to be trying to create more supply but they are not making it easy for landlords or developers wanting to build. Perhaps some new solutions need to be looked at.
Feels Like A Transition PhaseMarket Updates
Buyers still looking for space and not enough people want to sell. It feels like we are in a Covid transition phase – the world is slowly opening up but most don’t feel like the world is back to usual. And perhaps the new usual is different. Work from home and hesitation to travel continue to spur the demand for more space. Hence homes with home offices and enough rooms for everyone in the family to escape to are in high demand. We just don’t have enough listings for everyone. Bidding wars for homes continue, Real estate looks to be a good investment. Prices have never been higher.
Staying in Toronto?Homeowners
Toronto is getting busy again. Traffic is getting bad and slowly people are returning to work and play. In many ways the pandemic has given people some peace and quiet and those that really don’t need to live in the city are reconsidering staying. They still want the luxuries of a nice place but it no longer has to be in Toronto itself. Hence areas out of Toronto remain hot real estate wise and we are seeing luxury places being built where there were few. We are still waiting on the impact that accelerated immigration will have. There is currently a big shortage of staff in the service industry and immigration has always played a large role in this sector. All these people will need a place to live. Governments will need to accelerate processes to allow for more supply to be built. It sounds like everyone agrees that this is necessary. Now to do it.
Housing Hot Election TopicHomeowners
Housing is a hot topic for this upcoming election – a key election issue. Toronto and surrounding areas just don’t have enough houses for the demand. This includes many parts of Canada. The Government is trying to make housing more accessible by putting more money in buyers hands. However this does not address the need for more rentals and more ownership of housing. Perhaps it may be helpful if there is incentive and less bureaucracy to create rental and homes for purchase – a better plan to create density in certain areas. Understanding that density has to be strategic and neighbourhoods have to be preserved, we just need more. Maybe more effort and money to reassess what we currently have and what we need.
New Real Estate RealityHomeowners
Younger people who want to get into the market are getting in out of town or buying condos. Demand for condos has risen as house prices have become unaffordable. Demand for homes further from the city have also increased and so have prices. As a result, our cities will change. The change in demographics will affect infrastructure, commercial real estate, and businesses. The world is changing in so many ways. Adapting to a new reality will be critical.
Rental Market Heating UpMarket Updates
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.
Spring/Summer MarketMarket Updates
We are in a lull for listings. It was a crazy spring. Many homes and condos were sold. We saw some big bidding wars for homes and some very high prices. The number of bids on properties seems to have gone down but the prices have really not. We are seeing some strong numbers come in on both houses and condos. As soon as we see more product (and we may just see more listings as pandemic settles), we anticipate a strong market to continue. Summer may be quite busy.
Real Estate Sales 101Buying
Many buyers are fed up with blind bidding but no one forces anyone to bid high or low. The house will sell for whatever the market will bear ie whatever the buyer wants to pay. Its stressful for buyers but its also stressful for sellers who often need the money to purchase something else. Or they have already purchased something else for a high number. As agents representing sellers we are under contract to get the most we can for them. We have to follow the rules but situations are not always clear cut. There is more to the sale than just the number. There is closing date, conditions and sometimes a feeling of comfort with the buyer. Most agents we deal with are ethical. Its stressful for listing agents as well. It’s definitely not an easy market for anyone these days. Having a good agent working for you is important.