REAL ESTATE NEWSLETTER
THE TIDE IS TURNING
New Strategies for Buyers and Sellers
LYNN TRIBBLING 416 252-2221
Exceptional Real Estate ... Exceptional Realtor
Hello again friends, clients and neighbours,
They say, in real estate, timing is everything and what a difference a few months make. In my last newsletter, I reported record-shattering sales, stratospheric price increases, ecstatic sellers and clinically depressed buyers. The tide changed in April 2017.
Throughout spring and summer this year, sales slumped and prices flattened. Average prices dropped 20% since April and sales volumes are down nearly 35%. Now, vendors are fretting and purchasers rejoicing as Toronto is sliding towards a normalized, balanced market.
New market conditions require a paradigm shift to new tactics. Without the stressful pressure of bidding wars, buyers can now offer less than asking, negotiate reasonable terms and even include conditions for due diligence. Sellers, on the other hand, must realistically price their home, put some effort into proper staging, be patient and get ready to haggle.
Make no mistake, it is still a robust real estate market in the GTA that favors sellers. Currently, one in ten listings sell for more than asking price. Why? Inventory is scarce, interest rates are still low and buyer demand is high. Hence, prices remain high in most areas, and the average cost of all types of homes is $732,292.00. We have gone from 100 miles per hour down to 80 mph. It remains a healthy market where good properties are snapped up in days.
The condo market is especially strong due to affordability, with prices up 20% since August last year, compared with only a 2% gain for detached homes.
This Newsletter features helpful advice, articles and videos for buyers and sellers in a shifting market. It is a quick survivor guide on how to adapt. My top tip is that if you are buying or selling, your best friend is a savvy, experienced, successful realtor. Her name might be Lynn Tribbling! :)
Always motivated to do my best for you!
So far, 2017 has been a mixed year, starting off with a bang with record-breaking activity in the first quarter.The average detached home soared to nearly $1,000,000. This was a jaw-dropping benchmark considering that just 10 years ago, the average home in the GTA was about $350,000.
Suddenly, in spring, that hissing sound we heard was the steam coming out of the real estate market. Sales activity plummeted dramatically, in some areas , up to 40%. TREB's most recent report indicates a year-over-year decline in sales of 34.8%, with inventory is down 6.7%.
The drop in sales was triggered, in part, by government introduction of a 15% foreign "spec tax", along with an affordability crunch that pushed most buyers out of the overheated market. Bidding wars stopped, investor got nervous, purchasers pulled back and prices softened. The party was over ... at least for now.
Toronto Sales Volume
April - September 2017
TIPPING POINT REACHED AND MARKET NORMALIZING:
What does the current correction mean for buyers and sellers? If you are contemplating a purchase, act fast, to take advantage of the lull. It will not last forever. Also, interest rate hikes are looming. Strike while the iron is hot.
For sellers, we may be past the frenzied peak, but now is still an excellent time to sell. Prices have fallen slightly and interest rates have increased for the second time this year which may stall the market even further. There may be further price erosion in the future, especially for luxury, high-end properties.This means that sellers should add realism and humility to their marketing plan. Laser-sharp pricing is paramount, home staging is vital and do not make the mistake of buying before you sell.
As a seasoned realtor who has seen some 20 years of market ups and downs, I personally welcome this shift to a balanced market. Unless realtors have been in the business for more than 10 years, they may be unfamiliar with handling a declining marketplace. I love the thrill of old-fashioned haggling and getting the best deal for my clients. Finesse, reason and negotiating skills are back in style. Bring it on! I am good at it!
TIPS FOR BUYERS
It is a good time for first-time buyers!
Carpe diem, Baby!
Buyers, it is your moment to shine. Ready, aim, fire!
Assemble your team of experts: realtor, banker, lawyer and renovator and start the adventure.
Be bold and do not hesitate to try an offer. Insert clauses that protect you in the agreement like conditions on financing and inspection.
Do not be afraid to offer less than the asking price, especially if you are the only bidder. Shop in winter when there are less buyers.
Stay focused on your budget and do not overpay. Look for motivated sellers. Always ask "why are you selling?" You may even find a bargain in this market.
Negotiation is probably one of life's most important skills. Too bad they do not teach us how to haggle in school. We would all be richer!
The Harvard Win-Win model of negotiation is a good place to start. Learn, practice and prosper.
the art of negotiation!
TIPS FOR SELLERS
MARKETING STRATEGIES FOR A CHANGING MARKET:
The importance of social media.
In a sizzling hot market, realtors do not have to focus on marketing. List Monday, sell Tuesday. There was no need for advertising and promotion when properties sell instantly.
In a slowing real estate market, social media can be a superb selling tool. Your listing agent should be savvy about using social campaigns on facebook, instagram and twitter. These are inexpensive digital platforms that expose your property to thousands of potential buyers.
VIDEO TIPS FOR SELLERS
Five reasons your home did not sell
How to update your home to increase value.
Five things buyers want
HOTTEST REAL ESATE TECHNOLOGY
VIRTUAL RENDERING FOR RENOVATING AND STAGING
A changing market requires innovative tactics. Computer technology can definitely help.
Before you list your property for sale, your home may need a face lift to appeal to more buyers. If you are thinking of purchasing big ticket items like appliances, carpets and light fixtures, virtual rendering can save time, money and strenuous effort by allowing you to see how these new products fit your space and existing decor.
The results are amazing. I offer virtual staging as part of my listing package.These cutting-edge marketing tools are a revolution in property promotion!
VOILA! INSTANTLY VISUALIZE OPTIONS:
Try before you buy!
Virtual decorating is especially useful for buyers when the new homes need renovation and updating. Remodeling involves a series of small design decisions about colour, flooring, appliances and lighting. Computer rendering allows you to experiment with different looks and products without the hassle of installation and returns.
2045 Lake Shore
Humber Bay Shores $1,095,000*
RARE THREE BEDROOM
Legendary VIP building, 5 Star resort-style amenities, approx. 1900 sq.ft., prime unobstructed lake views.
(*List price shown)
LYNN'S RECENT SALES
THE LIGHTER SIDE
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FUNNY REALTOR ADVERTISING !
Sales Representative, Right at Home Realty Brokerage
DIRECT: 416 252-2221 OFFICE: 416 391-3232
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(**DISCLAIMER: Not intended to solicit listed properties or buyers under contract. All information is approximate and subject to change. Cover letter photo source North Cape Furniture Collections, Non-proprietary photos courtesy of Googe images.E.& O.E. )