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photo-1441226119864-4f31075ed6c5Summer is over and the Toronto housing market fall edition has officially begun! Toronto’s Beaches, Upper Beaches and Riverdale are off to a quick start this week with

Total: 86 new house listings: 65 are under $1MM

Riverdale with 42 new listings: 36 homes between $459,000-$999,999

Beaches/Upper Beaches with 44 new listings: 29 homes between $400,000-$949,000

Total: 37 new condo listings:  33 are under $1MM

Riverdale with 19 new listings: 17 condos between $309,000-$739,000

Beaches/Upper Beaches with 18 new listings: 16 condos between  $314,900-899,900

 

I’ve spent some serious time on the MLS this week pouring through those listings mentioned above and visiting several of them.

More houses and condos = choices = competition amongst Sellers to get those Buyers in the door coming over the next months. So no need to worry if you’re not ready to buy or sell in the next few weeks. Last year the fall market went right through the 2nd week of December

Prediction:  The Seller’s market will continue. For Buyers, that means you’ll want to pre-qualify for your mortgage before you go shopping. Get pre-approved for a mortgage and a rate (good for 90 days).

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What is a Seller’s Market?

Simply put, when there are more Buyers than homes for sale, Seller’s tend to net more money as Buyers are vying to purchase . The Toronto real estate market – this is a continuation of the past 10 years (and the past 5 have been a bit crazy with “bidding wars” on a regular basis). In the words of Yonge MC you need to be ready to “bust a move” and make an offer if you find a property you like.

Just this week I had 2 builders miss the opportunity to purchase an exclusive listing: rare lake view lot that someone will build an almost $2MM house on. Neither put in a pre-emptive offer (aka a “bully offer”).  When a property is rare or on exclusive and you’re standing there with your agent and  you’re pre-approved  and you know your numbers… whether you’re a builder or a home purchaser if you hesitate, you may miss out on a rare opportunity to get into a neighbourhood that you want to live in.

Regarding Pre-emptive Offers: Sometimes people will make an offer prior to the listed “offer date” in an effort to pre-emptively avoid a bidding war. It’s an offer that Seller’s must seriously ask themselves “If I wait until offer night, will I get an offer this high or should I go with bird in the hand?”

By the way, there’s a Seller’s Direction form that states a Seller will not review offers prior to a pre-determined offer date.

  1. Some sign it. Some don’t.
  2. If a Seller does not sign this form then any Agent can come forward with a pre-emptive offer prior to offer date and the Seller’s Agent is obligated to inform their Seller of the offer.
  3. As soon as an Agent makes a pre-emptive offer, the rules dictate that every agent that showed the property must be notified accordingly.
  4. That means, you Mr and Ms Buyer will get a call from your Realtor asking if you would like to buy the property on this new date. And, you may find yourself in a bidding war days before the originally scheduled offer date.

 

The Economy: What About the Declared Recession?

People want a place to live and “move up” as the lending rates stay low for the foreseeable future. Bets that they may lower? Heck,  if they go up even slightly the market for homes less than $1MM is strong and CMHC is always available  if you choose to put down less than 20% downpayment for a conventional mortgage.

Real estate as an investment opportunity churning profits has been proven and written about ad nauseum.  It has become a more attractive investment in Toronto with the stock market volatility. If you haven’t checked your portfolio in the past few weeks then it may be a good time to consider the Toronto real estate market as an investment discussion for creating wealth moving forward. Note: I’m not suggesting you sell your stocks if they’ve tanked. Wait it out – what goes down comes up again (we hope).

Townhouses: Competing

We’re seeing more stacked townhouses being built. Why? Builders can create density, meet city height restrictions and offer family-size living space often for less than the price of a Central Toronto home.

  1. Townhouses are often more affordable than detached houses.
  2. Townhouses often offer as much or more space than a detached home and they’re new (no older home issues).
  3. Why pay rent when you can pay yourself and have equity?
  4. The townhouse market is traditionally not as competitive (read: less bidding wars) and if you’re considering a “new build” project then you’ll want some help navigating. Not all projects are created equal.

A Case for Condos: Competing

The Beach, Leslieville, Riverdale – condos, condos, condos. You have choices east of the DVP and the condo market is stable.

You can’t go wrong in a good building these days. The key is a Realtor who knows the buildings and the street values. Condominium builders and buildings have reputations!

What’s your home worth?  Need a consultation?  Do you have a great Mortgage Broker as part of your home buying/selling team? Want to be prepared for buying or selling in the Toronto real estate market this fall? Let’s connect via text, telephone machine, email or however you prefer!

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