July 2016 Toronto Market Update – WTF Edition!

July 2016: East Condos & Towns FTW.

Infographic below

The market update for those who live South of Bloor from Islington to the Bluffs. Still a large area and our numbers may not be 100% reflective of your home but are certainly closer than using the numbers for the GTA.

The dust has settled and the July 2016 real estate numbers are in. We haven’t seen an uptick in foreign buyers yet due to the bullshit tax the BC feds imposed on Metro Vancouver properties but it’ll come. We’ve already received the inquiries. August should reveal some serious gains so please stay tuned for that (if you’re not signed up to get these, do it here).

Any move-in ready freehold product in an urban area will be $1mm by 2017 #leslieville #roncy Click To Tweet

If you’re buying West Toronto real estate you’re going to continue to pay a lot for any freehold product. As land value approaches $650K in most communities anything move in ready located in the popular urban environments it’s going to cost you $900K +/- and homes that need a little updating (or aren’t presented well can be scored for closer to $800K. The same goes for East End communities like Leslieville & Riverside but you can still get into a home for the mid $800’s that won’t have you compromising too much (you may not get parking though).

The real opportunity here still lies in condo products. Condo towns like this one we just listed are so undervalued it’s insane. Sure, there’s a maintenance fee associated with these homes but let’s quash one of the biggest misconceptions in real estate right now. You do know there is maintenance with a house right? With a condo product, those costs are simply fixed and therefore easier to budget. We often hear folks say that they could afford more house if they add the condo fee amount to a mortgage payment. See how silly that is? Don’t do that folks!

East Toronto condos and towns are sooo undervalued. #corktown Click To Tweet

The demand for Toronto Real Estate has never been higher and your average cookie cutter condo is fetching $600/sqft and others hitting the $700/sqft mark for the first time. We just sold a Leslieville loft for $824/sqft setting the ultimate record for an East End condo. (Take a look at it here).

Want us to drill down into your specific neighbourhood? Email us and we’ll send you one within 24hrs.

July Market Update


Vancouver’s 15% Non-Resident Investor Tax To Boost Toronto Market

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Vancouver’s 15% Non-Resident Investor Tax To Boost Toronto Market

Three hours ago the Globe and Mail reported reported that the British Columbia Government has elected to impose a 15% tax on buyers of Metro Vancouver residential properties starting August 2nd, 2016.

The tax will apply to buyers who are not Canadian citizens or permanent residents, as well as corporations that are either not registered in Canada or controlled by foreigners.

The province does however have the flexibility to vary the tax from 10-20% depending on the deal. This is likely the biggest change a regulator has made in an attempt to cool an incredibly intense market. Having to pay an additional $150,000 for a $1mm property ($300K on $2mm and so on) could drive investors to other markets like ours here in Toronto. This move will also allow Municipalities to impose a Vacancy Levy on investor owned homes which remain unoccupied.

With home prices in Metro Vancouver gaining over 30% in the past year, this is Premier Christy Clark’s attempt at curbing the market to provide more affordable housing for the middle class (which is complete BS.) Rather than find a way to provide more affordable housing options for the middle class, the province has simply found a way to profit off of investor money. This move will do nothing for the middle class.

This new and insane land transfer tax will certainly drive investor money out of the province into other Canadian markets but will also fuel investment in Vancouver commercial properties and other non-residential real estate. I’m also fairly certain that Non-Resident investors will find ways to keep their money in residential real estate by focussing on surrounding Vancouver communities like Burnaby, New Westminister, Richmond and Port Coquitlam to name a few. If I were investing in Real Estate, I’d put my money in those communities. Helping the middle class, eh? No, you’re even going to push out the middle class in those other communities as prices rise there too.

There’s nothing the feds can do (without completely crashing the economy via rate hike) to help the middle class afford homes. Over the next decade we’ll see a huge spike in creative home ownership with a rise in co-ownership (two families under one roof), multi family homes and families becoming more comfortable with smaller spaces if they want to stay closer to the urban City Centres. This is just a reality of big city living.

What does this mean for Toronto? Hold on to your hats, folks because money is about to come pouring into Toronto. Non-resident purchasers are going to be looking to put their money in a more investor friendly environment. Toronto happens to be the most diverse City in the World so naturally, we’re next.

How’s the Toronto market now?

Many don’t realize how intense the Toronto market has become. There are Real Estate agents and investors literally flipping properties before closing for a quick $50-100K profit daily. For example: We sold a property two months ago to a Realtor, we then found out that just before closing he flipped it to a colleagues’s client for a $50K profit.

Another agent commented on a local real estate thread:

In our office, we have Canadians assigning APS agreements a month before closing at a price of $100k more then when the agreement was written. The distortion is coming from all angles! 

We’re seeing this on the ground now and it’s going to get worse (I guess better if you’re a property owner) before it gets better. If you’ve been in the market  and just haven’t quite pulled the trigger on the property. It’s time. Toronto real estate isn’t going to get cheaper any time soon. Need help? Email us.

 

 


What BREXIT means for the Toronto Real Estate Market.

The Great Brexodus

To BREXIT Or Not To BREXIT. That Is The Question.

The news of Britain electing to leave the European Union came over the wire last last night shocking the rest of the world and of course Scotland who were the majority who elected to remain. Can BREXIT affect Toronto Real Estate?

Toronto is the World’s most culturally diverse City and has experienced tremendous growth as a result of local economic confidence as well as a flood of foreign investment especially in our Real Estate markets.  Considering this shocking news has resulted in losses across the board with the Financial Times reporting the FTSE 100 starting the day down almost 9% then recovering to a net decrease of only 3.2%. The Pound Sterling taking an 11% nose dive but recovering to a net loss of 7.8% has sent shock-waves across the globe with folks net worth being slashed as the day went on.

Any sort of global economic event could seriously impact Toronto Real Estate especially in development financing but we don’t see this affecting the end user home buyer any time soon as events like this tend to keep the Bank of Canada as well as the Big Banks from making any significant interest rate changes to further fuel investor paranoia and sell-offs. In fact, we see this event as adding to the demand for Toronto Real Estate with increased demand from British Non-Resident purchasers.

We’re confident this won’t negatively affect the Toronto Real Estate market as a whole but also very important to not make any hasty selling or buying decisions until all the dust has settled. BUT if you’re one of those impulsive folks and feel like you’d like to move over the pond and make Toronto your home? We’re here to help.

Buying Canadian Real Estate as a Non-Resident

There are a couple of major things you need to understand when buying Canadian Real Estate as a Non-Resident. First of all, the Canada Revenue Agency identifies anyone who spends less than half the year in Canada as a non resident so you may find yourself (someone who identifies as Canadian) on this list to be careful!

Down-payments & Taxes

When buying real estate you need to have your down-payment and closing costs in cash on moving day. Us lucky Canadians can get away with as little at 5% of the purchase price as a down payment but unfortunately that percentage jumps significantly to 35% for non-residents Buying in Canada. Of course there’s also something called a Land Transfer Tax which first time buyers get a partial rebate from. Find out what your total costs are using our custom Buying/Selling calculator(dropbox to excel file) and please do call or text 1-416-434-1511 or email ara@springreatly.ca if any questions.

 

 

 

 

 


How Will The Downtown Relief Line Affect My Property Value?

Downtown Relief Line (DRL) & Property Values

The recent announcement of the Downtown Relief Line’s preferred route has many folks living in the Leslieville area worried about their property values. Chief Planner, Jennifer Keesmaat has assured residents that expropriations won’t be necessary in this CBC interview (full interview and video embedded below).

“There won’t be expropriations along Pape. But there will be people who didn’t have a subway running underneath their house before who will now,”

Here’s the preferred route

Downtown Relief Line 2016 Property Values

When scanning local Facebook groups like the popular East End group I Am A Leslievillian you’ll notice many conversations mostly supporting the announcement and others armed with loads of misinformation spewing NIMBY uselessness. One commenter said “I want a subway but I don’t understand how going down the narrowest street south of Riverdale Avenue makes any sense.” to which another replied “You know that Subways go underground right?” which made us literally laugh out loud in the office.

One of our favourite comments comes from a loyal East Ender:

I am unsympathetic of anyone who benefits socially, culturally and financially from all the positives of living in a city, but turn around and attempt to quash progress that city is trying to make when it inconveniences them personally. Full stop.

Look, this project has been studied to death. We’re pretty sure all options have been looked at and this is the one that makes most sense.

The below grade construction is likely to be a pain in the butt for folks directly above the work in the short term but with improved tunneling technology and better insulated tunnels the short term pain will be an insignificant little bug when compared to the long term benefits of improved transit in Toronto. I mean look at this map below when comparing other City’s transit systems. We’ve got a long way to go for a “World Class” City with millions of residents.

Downtown Relief Line Property Values

So will the Downtown Relief Line affect your property value if it goes under your home. Yes. In a good way. BUT if you aren’t comfortable living with some construction your option is to sell right now or after it’s all done. The only time your property value may be affected would be if you tried to sell during construction.

Our research has shown that homes located directly above the Danforth/Bloor Subway line have appreciated just as aggressively as homes further away.

Wanna sell? Call us. Do you live on/near the proposed route? We’d love to hear from you. Comment below.

Downtown Relief Line – Upcoming Public Meetings

RELIEF LINE Wednesday, June 15

Matty Eckler Community Centre
953 Gerrard St East
6:30 pm – 8:30 pm
Presentation at 7:00 pm

RELIEF LINE Monday, June 20

Calvary Church
746 Pape Avenue
6:30 pm – 8:30 pm
Presentation at 7:00 pm

TRANSIT NETWORK PLANNING Tuesday, June 21

City Hall
Members’ Lounge
100 Queen Street West
3:30 pm – 6:30 pm
Presentation at 5:00 pm


Competition Bureau Rules In Favour of YOU!

Sold data

Sold Data Coming Soon!

The Competition Tribunal has ruled against the Toronto Real Estate Board and Canadian Real Estate Association and will finally allow it’s members (aka us) to make Sold Data available online. You can access the full ruling here but we’ll summarize below.

So here’s what you’ll have access to via the Spring Realty Search tool that you couldn’t before:

  • Sold Information
    As soon as a deal firms up…meaning, all of the conditions are waived (if any) and the price is reported to the MLS system by the listing brokerage we can give you that information. So now you don’t have to bother us 10 times a day asking “How much, how much, how much!” Just log in a have a look, baby!
  • Status Changes
    Right now, when you see a property on MLS you assume it’s available for sale. Not true. When a property is sold conditionally, it still shows as a live listing so with this new data feed, we’ll be able to show you the actual status of these homes. This’ll save us both a ton of time.

That’s it folks. I’ll keep this one quick so we can get out there and ready our search tool for the incoming data! Make sure you sign up here to be notified the moment we’re able to make this info public! Oh, and our search function isn’t working well right now. That’s because we’re in the back end working on it so be patient my little grasshoppers. The time is soon.


Ya, but how much will it sell for? More. Way More.

STOP THE MADNESS!

Oh Buyers – we’re so so sorry. Buying in Toronto is HARD! You’re bidding on properties and you’re losing. Then you get all fed up and go way over the top on the next one and the cycle continues.

I’ll have to apologize for the way some properties are being priced. For example, without getting into specifics, there was a property listed today for $730K on one of the most popular streets East of the DVP. This fully renovated 3 bedroom 2 bath home has no business selling for anywhere near that price so again, we’re sorry that you’re going to see this place and get your hopes up. You’re going to wake up, call your agent they’re going to break the news to you (if they’re good at their job anyway). Local comparables suggest a sale price closer to a million dollars.

How do we stop this from happening? We need to transition to a more transparent system. if you’ve ever brought a buyer to one of my listings you know what I mean. I’m one of the few that doesn’t waste peoples time during these presentations. The Toronto Real Estate scene needs a big overhaul and this market should spark some innovation and pressure on the governing bodies to act. Transparency is all we’re asking for. What does that look like? Open bidding, full disclosures would be a nice start.

Now I’m sure you’re going to ask: “Hey Ara, didn’t you just list this place for $800K and sell it for $1mm?…what gives?” Yes, you’re right, but here’s the difference: A home in the same complex with the same specs sold for $801K so yes, we’re guilty of under-pricing by one thousand dollars (although we staged ours to look amazing)…not two hundred thousand. The Buyer made a decision to go way over the top because they were likely fed up by losing so much. It’s going to happen sometimes but less often when homes are priced property at the beginning.

How do we stop this madness? Ask yourself why you’re buying. Are you Buying now because you’re having a serious case of FOMO (that’s “fear of missing out” for those out of touch with that youth slang) step out of the market right now. You’re adding fuel to the fire. All of you other Buyers that NEED to move: Be patient. You’ll find the right one at the right price. I know you’ve made a ton of compromises already but you’re so close so keep at it. If you still need some guidance or need a loyal, local expert to step in…call us.


Sold Over Asking!!! Ya, no s**t.

Sold Over Asking

Members of the public! What do you think when you see: “SOLD OVER ASKING.” ? I’d love to know so please post your comments bellow.

Everyday there’s a sales rep or broker going on and on with claims of sold over asking . Every. Damn. Day. You see it in your mailbox, your Facebook newsfeed and on lawn signs. Then you go and look at this place they worked oh so hard to fetch over asking and you see that it was priced 10-20% lower than market value. Naturally it’ll sell over asking the way the market is.

We’re pleading with all the Sales Reps and Brokers out there to STOP with this lazy marketing. Consumers see right through it and the Buyers of Toronto would prefer to not have that rubbed in their face. You on board? Good!

 

Lazy Marketing

 


April Numbers Are In And They’re Pretty! For Sellers anyway…

Poor Buyers 🙁

[Infographic Below]

Semi Detached homes in Central Toronto experienced the most gains increasing just over 30% over last year landing at $1,169,426. Every other housing type showed double digit gains except for Central Condos and lofts which only jumped 4.2% from this time last year.

The below average performance of Central Condos is actually further proof that smaller urban communities around the core is where Townhouse, Condo and Loft buyers are headed leaving their Central counterparts in the dust. For the first time in a very long time we’re even seeing multiple offers on one bedroom units outside of the core…more specifically one bedroom loft spaces in conversions like this one we listed for $420,000 and sold for $490,000 with 6 offers. That’s well over $800 per square foot which allowed us to set a new record for East of the DVP. We expect this trend to catch on for the typical one bedroom condo as housing gets even more expensive in the 416.

It’s impossible to get a home in good living condition in these prime areas for under $825,000. The magic number seems to be trending up to $890,000 for a basic semi detached house…

Communities East of the DVP to Coxwell (Riverdale, Leslieville, Riverside) and the communities bound by Ossington – Bathurst (W/E) Bloor – Queen (N/S) are leading the pack in terms of Buyer demand. Seller inventory continues to be an issue in these areas specifically as new listings are down 29.6% driving prices even further up. It’s impossible to get a home in good living condition in these prime areas for under $825,000. The magic number seems to be trending up to $890,000 for a basic semi detached house in these neighbourhoods. Even more if the home offers income suite potential and almost always fetching a million if it is fully renovated with parking.

We’re trying to drive buyers with smaller budgets to communities along St. Clair West, and East to the Birchcliffe, Cliffside, Cliffcrest and Guildwood communities as we’re seeing great growth potential there. We’re also driving our condo Buyers to the Canary District and Regent Park Area for the most potential future gains.

Are you a Buyer in this market? We’d love to chat with you for a story we’re working on so email us or comment below and we’ll connect. Remember, if you’re not under contract with another Broker give us a call. We’d love to show you how our Local Intelligence and Radial Transparency will help you save a ton of time when Buying and net you a ton more cash when Selling.

That’s all for this month, folks!

April Update

 


[Market Update] Two Bedroom Condos Are The New Black

market update header

Holy Gains Batman! [Infographic Below]

In 2010 we talked about adjusting your expectations from detached to semi- detached. In 2014 we talked about adjusting your expectations from semi-detached to townhouses. Now, let’s talk about adjusting your expectations from townhouses to larger condos and lofts. This isn’t you throwing in the towel. Giving up. It’s you making a very adult decision to get your self on the property ladder a few steps lower than expected. This is a reality of the Toronto real estate market.

Numbers are way up across the board for all property types this month when compared to 2015 but one number really stood out. Semi detached homes are up 34% over this time last year at an average price of $1,161,096 in Central Toronto. Yes, you heard that right, if you want to live in Central Toronto anywhere south of the 401 East of Dufferin and West of The DVP it’s going to cost you over a million for the semi option an $1,869,749 for anything detached on average. This is why the townhouse has become so attractive. In the past you could almost always secure a townhouse for around $500-600K but even that number is up 16% to $640,672. 

Buyers really serious about getting into the market are making a further adjustment and going for the larger condo or loft space which has driven that price up my 14% to $488,518 on average but if we look specifically at the 2 bedroom or larger data point we’re at over $500K on average and even higher if we look at smaller, boutique buildings geared towards the end user. We already have word of many developers building larger suites in and around the Core and we have confirmation that they’ll be launching at price points well over $700 per square foot.

It’s getting serious out there folks so it’s time for you to get serious. Are you losing out on house after house, offer after offer? You’ve got a problem, either your sales rep isn’t good at their job or your expectations aren’t in line with the Toronto Real Estate market. There are more eyes than ever on Toronto now and this City isn’t getting any cheaper so you have two options: 1. Keep renting and enjoy your life 2. Adjust your expectations and get into the market any way  you can. Let’s chat. Message us and we’ll see how you fit into this market.

Check out our monthly market snapshot below and sign up to never miss another one again. We can even make neighbourhood specific ones for you…just ask!

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What Happens To My Real Estate Deposit If My Purchase Falls Through?

Real Estate Deposits : 101

Real Estate Deposits

We recently sold a listing and after we obtained the deposit from the Buyer the Seller called me to ask when she could have the real estate deposit. Apparently she needed to make a purchase and was counting on that cash right away. Here’s the 411 on real estate deposits and what happens when deals fall through (or not)

You’re Sold Conditionally

A conditional sale is most common when a Buyer needs to confirm a few things prior to “firming up” on their purchase. The most common conditions we see are: Financing, Home Inspection, and Status Certificate review (condo only). Of course there are others but these three are most common. If the Buyer is unsatisfied with any of their findings during their conditional period they can back out of the deal and they get their real estate deposit back. Sorry you can’t keep it!

You Have A Firm Deal

Well this is where things get tricky. Many folks think that you are able to just take the real estate deposit if a Buyer walks or fails to close (aka Buy) the property once there is firm deal on the table. A firm deal is one which doesn’t have any conditions or the conditions have been satisfied by the Buyer and “waived” or “fulfilled” effectively removing them from the deal. If the Buyer fails to fulfill their obligation to close the deal you must sue the Buyer for the real estate deposit and win, effectively have the deposit money (and anything over and above) rewarded to the Seller as damages. Here’s the catch: you cannot unload your asset during the litigation. What does that mean to you? These lawsuits can take many many months or even years to see through. During that time you cannot sell your home and carry on with your life like you had hoped. Is potentially banking a few thousands dollars worth that? The answer is usually no. Most of the time, as a seller, it’s better for you to just let the Buyer out of the contract and move on with your life. Unless we’re talking about hundreds of thousands of dollars like in some commercial deals we’ve seen…then it may be worth sticking out a lawsuit.

So the main reason you can’t have the money before the Buyer actually buys your property is that there’s always a chance the deal won’t close. So to sum it up: You don’t just get the real estate deposit if the deal doesn’t close and you can’t have it until the deal closes. Clear? Questions? Just message us and we’ll holler back.