Exceptional Real Estate ... Exceptional Realtor
Sales Slump in 2018,
But Condos Shine!
That hissing sound you hear is the air coming out of our over-heated Toronto housing bubble. Sales volumes for homes have declined 35% year over year and 31% for condos. Prices for the average homes have declined 12.4% from $876,363 to $767,818, over a $108,000. drop!
The bright spot in the market is condo sales, especially downtown buildings. Sales numbers are down, but prices are up by 10% compared with last February. The norm for newer, luxury condos is approaching $1000. per square foot. The average condo price is $530,000 and multiple offers are common.
What triggered the overall slowdown in the housing market? Three main factors: rising interest rates, tighter mortgage rules and an affordability crunch. Buyers are lock out by tight money and stratospheric prices. Speculators are worried about the prospects of dwindling returns. The party is over ... for a while.
Yes, this is a correction from an unsustainable sales binge in in 2015 and 2016, but it is probably a blip rather than a bust. In fact, the new sobriety is, in my view, a welcome shift to a normal, balanced market. What will I miss about stressful bidding wars and predatory bully offers? Nothing.
Welcome back Goldilocks! The current market will likely remain, for the next while at least, not too hot, but not too cold. This is a perfect opportunity for buyers to negotiate sane and civil deals. More than ever, sellers will need savvy, experienced agents who understand that laser-sharp pricing, strategic marketing and staging skills are vital to succeeding in this new balanced market.
Buyers will need a patient and shrewd realtor who is skilled in ferreting out bargains and someone with top-notch negotiating skills to avoid over paying. Her name might be Lynn. Game on!
HOW TO ADAPT TO A BALANCED MARKET
TIPS FOR SELLERS
For sellers, the frenzy has fizzled, but now is still a good time to list to capture the momentum of a spring market. Traditionally the peak time to sell is in April, May and June. Realtors say: "When tulips bloom, markets boom!" Bad poetry, but good advice.
Currently, house prices are flat, but if interest rates continue to rise, the market may soften even more. There could be a further price erosion , especially for high-end properties.
For condo owners, this may be the optimum time to sell to seize gains since prices are historically high.
In this tipping market it is best to sell before you buy. Also, a seasoned realtor is your best friend.
Toronto Sales Volume
Down 35% in 2018
TIPS FOR BUYERS
What does the current correction mean for buyers ? If you are contemplating a purchase, act fast, to take advantage of the lull. It may not last forever.
With more interest rate hikes looming, buyers may have difficulty qualifying for a mortgage in the future. This is the best market for purchasers in several years. There may even be some bargains out there.
Best advice for buyers: Start shopping, annoy your realtor, be fussy, look at a lot of listings, insert conditions. Be bold, try a low offer and strike while the iron is hot. This is your moment to shine.
CHANGES FOR LANDLORDS & TENANTS
Starting April 30, 2018:
Lease Agreement Required for Rentals
The Ontario government, in its wisdom, has legislated a new 14-page legal document that must be used in nearly all future rental transactions.
It has been drafted to disclose and clarify prevailing tenancy regulations and fully protect the interests of the renter. It spells out the rights of the tenant with respect to pets, privacy, deposits, evictions, subletting and other important issues.
This new compulsory agreement outlines penalties for landlords who breach the rules. In fairness to landlords, it also includes a section for additional terms and conditions that the landlord may require.
If you are an investor, own income property, are now or plan to be, a lessor or lessee, it is vital to review and understand this new comprehensive lease agreement.
STRATEGIES FOR DOWNSIZING
HOW TO DUMP THE JUNK:
THE FIVE GOLDEN RULES OF DE-CLUTTERING
1. SELECT- Only keep things you need, use or love. Eliminate duplicates, broken, redundant or valueless items (excluding spouses)
2. SORT- Organize, classify, lable what is going: Dump, Donate or Divest (sell). Be decisive. Have a plan.
3. START- Take action, do one small area at a time, one bag a time. Spend 1 hour a day for 30 days.
4. SUPPORT- Recruit helpers who have no emotional attachment to your items. Consult with experts to confirm values. Network with others to find resources for disposition of unwanted treasures and junk.
5. STOP- Resist impulse-buying and accumulating unnecessary, new items.The downsizer's mantra is:
Less is more
A NEW EMERGING SEGMENT OF THE MARKET
Currently, more than 40% of sellers are empty-nesters or retirees who are downsizing and transitioning to a convenient and pared-down lifestyle. A tidal wave of aging baby boomers has created this unprecedented trend in our real estate markets.
Move-down sellers are motivated by many reasons. It may be a health issue, financial concern, family urging, prudent estate planning or a desire for simplicity that triggers the decision to downsize. For this growing segment of the market, contraction is more important than accumulation. The rewards are convenience, efficiency, thrift, freedom and the satisfaction of leading a life well-planned.
Downsizing is rightsizing. It is the deliberate adaptation to changing circumstances which calls for minimizing financial commitments, material belongings and residential space in response to the realities of a new life-cycle phase. It is inevitable, rational, gratifying and ultimately liberating.
460 Queens Quay W., Suite 301E
RARE SUITE, HUGE TERRACE
Iconic VIP building, 5 Star resort-style amenities, approx. 1631 sq.ft., lake, marina, Music Garden views. (*List price shown)
HOME STAGING: 6 STEPS
In a last year's sizzling hot market, most listings sold briskly. Even dreary and dilapidated properties were snapped up by eager buyers. In the current sober market, home staging matters more than ever.
Staging works. It can increase values and accelerate the speed of the sale. Here is how to prepare your home before listing:
1. SANITIZE - clean all surfaces
2. NEUTRALIZE - colours, noise, aromas
3. FINALIZE - do small repairs, finish projects
4. MINIMIZE - remove junk, reduce contents
5. MAXIMIZE - increase light and space
6. MODERNIZE - update decor and accessories
LYNN'S RECENT SALES
THE LIGHTER SIDE
This is why you need a Realtor before you buy!
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. Non-proprietary photos courtesy of Google images.E.& O.E. )