Let’s start with stating the obvious; the home prices are very closely correlated with availability of credit and this is the main tool the government uses to control the housing market.
Since the 2008 financial crises we had unprecedented rise in credit availability due to low interest rates with prices in some places at one point rising as much as 30% a year.
April 07,2019
A recent report released by Transparency International Canada points to rampant money laundering in Toronto real estate.
I have been expressing this very concern since 2017 and finally we have some numbers to prove it.
Since 2008, $28.4 billion worth of housing was acquired in the Toronto region largely through private entities where owners can remain anonymous.
We have two new entries into Canadian real estate market in the form of Purple Brick and Redfin brokerages.
They both claim that their innovative technology will provide the home sellers with big savings on the real estate commissions. The two brokerages have different offers; Purple Brick offers paid services to help sellers starting with MLS listing. Anything else you would need to support your sale would carry a fee and you are on your own in terms of management of the sale process.
As most of us, I reflect on the past year on this New Year day and I think of new goals for the 2019.
The 2018 was an excellent year for us at Dygas Team. We have helped record number of people to find their new homes and we’ve made lots of new friends in doing so.
With new trends in the Toronto real-estate and the most notable the Urban Infill, reflecting the global population moves to cities, GTA is becoming denser every year. It is predicted that the world’s building stock will double in area by 2060.
Toronto, November 7,2018
We have real estate sales figures for October 2018 and the numbers look pretty good when we consider the circumstances.
First the numbers in 416 areas where all types of the real estate showed positive year over year price increases. Of course the condominiums posted the best increase of 8.6% and the detached houses showed the lowest increase of 1.4% .
BNN is forecasting that the Canadian dollar will go down to the low 60s by the end of 2019.
If this is to materialize then your home can lose 20% of its value compared to other currencies by the end of the next year and this is assuming that the prices are going to hold.
The reason for the high probability of that occurring is due to number of factors including slowing economy and drastic changes in US policies.
An individual home owner always wonders what their house worth is and what the outlook for the real estate prices is. Following the professional real estate investors is one of the best ways to get early signs of changes in the market. So here are the key opinions from the pros:
Single-family residential
The overall outlook for single-family residential is modest with possibility of a temporary price dips but no one should expect a major pullback on prices.
Condominiums
We are approaching the start of the spring market in Toronto real estate and everybody tries to gauge the direction. Unfortunately the data points we got so far is confusing. The January 2018 real estate sale figures are rather dismal. Year over year overall sales are down by 22% while average price is also down 4.1%. The numbers are even more downbeat when you look at different home types. In particular average price for detached homes in 905 areas was down by 12% while in 416 area it was down by 3.9%.
It is interesting to see media outlets focusing on different parts of the October 2017 market figures. From ecstatic declarations of major market rebound by Globe and Mail when comparing the sales results to September to major disaster headlines when comparing dropping sales year over year.
The truth is as usual in the middle and the reality is that we are in sort of balanced market right now with sales on average in Toronto down 22% YOY but the prices being up 6.3% YOY.
Recent couple of months show that it’s hard for buyers to make a decision on the direction of the real estate prices in TO.
Right now we see the new trend in more expensive houses staying on the market longer and often with multiple price reduction.
Here are the key uncertainties the buyers have to deal with;
