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Baby, we got a bubble!?
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- Start date
Auraz
Active Member
Ooooo Spooky...guess this means rental market will be healthy for years to come
Condo George
Active Member
GTA REALTORS® RELEASE MID-MONTH RESALE HOUSING FIGURES
TORONTO, February 18, 2015 – Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported a 14.9 per cent increase in the number of sales entered into the TorontoMLS system during the first two weeks of February 2015 compared to the same period in 2014. There was a total of 3,120 home sales during the first 14 days of February 2015. The number of new listings entered into the TorontoMLS system was also up on a year-over year basis, but by a lesser annual rate of 3.5 per cent. “As households continue to take advantage of the great diversity of home ownership options in the Greater Toronto Area, home sales have continued to trend upwards. While home prices are higher compared to this time last year, borrowing costs are lower. Home buyers are still finding affordable options to meet their housing needs,” said TREB President Paul Etherington. The average selling price for the first half of February 2015 was $602,110, representing a 10.3 per cent increase compared to the average reported for the same period in 2014. Annual price growth continued to be driven by the tight low-rise market segment, with double-digit growth reported for detached and semi-detached homes.
“With tight market conditions continuing to prevail in most parts of the Greater Toronto Area, especially where low-rise home types are concerned, it is no surprise that we continue to see strong competition between buyers leading to robust annual rates of price growth,” said Jason
TORONTO, February 18, 2015 – Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported a 14.9 per cent increase in the number of sales entered into the TorontoMLS system during the first two weeks of February 2015 compared to the same period in 2014. There was a total of 3,120 home sales during the first 14 days of February 2015. The number of new listings entered into the TorontoMLS system was also up on a year-over year basis, but by a lesser annual rate of 3.5 per cent. “As households continue to take advantage of the great diversity of home ownership options in the Greater Toronto Area, home sales have continued to trend upwards. While home prices are higher compared to this time last year, borrowing costs are lower. Home buyers are still finding affordable options to meet their housing needs,” said TREB President Paul Etherington. The average selling price for the first half of February 2015 was $602,110, representing a 10.3 per cent increase compared to the average reported for the same period in 2014. Annual price growth continued to be driven by the tight low-rise market segment, with double-digit growth reported for detached and semi-detached homes.
“With tight market conditions continuing to prevail in most parts of the Greater Toronto Area, especially where low-rise home types are concerned, it is no surprise that we continue to see strong competition between buyers leading to robust annual rates of price growth,” said Jason
KA1
Senior Member
Whenever possible, can you, please, update us on the sales/prices of condos?
Admiral Beez
Superstar
Which outside of Canada/USA is very common. I travel to Germany quite a bit, and nearly everyone rents there. My good friend is a doctor in Bavaria and says he'll likely never buy a house there, everyone rents, except for the corps or Nabobs that own all the property of course.
Auraz
Active Member
Germany is at 80 million people. Bavaria Is double the size of GTA population. Of course there's gonna be boatloads of rentals. Hows the prices over there? We still trying to live the Canadian/Amercian dream here..
NorthYorkEd
Active Member
Maybe the dream is changing. Based on more transient jobs, careers, and the instability of families, relationships, and the changing goals and interests of the younger generations.
James
Senior Member
I think the dream in the large metropolitan cities are changing, but outside of the major cities, I think that proverbial American dream is still alive and well. I think on a global level, the major cities are going to continue seeing population increases, meaning the "new American dream" will become more and more prevalent.
As far as what the "new American dream" is, I think it's really a work-life balance lifestyle where individuals are less and less tied to their homes and more mobile than ever before. Telecommuting will be key and everyday conveniences (ranging from prepared meals to services for all your mundane chores) will be 'contracted' out more frequently. I see people being less DIY (do it yourself) and relying on professionals who are specialized in that field take care of things. Overall, people will be more hands off and I can see the lifestyle matching suit. As much as people initially put down condo living, I think the condo lifestyle fulfills this ideology.
As far as what the "new American dream" is, I think it's really a work-life balance lifestyle where individuals are less and less tied to their homes and more mobile than ever before. Telecommuting will be key and everyday conveniences (ranging from prepared meals to services for all your mundane chores) will be 'contracted' out more frequently. I see people being less DIY (do it yourself) and relying on professionals who are specialized in that field take care of things. Overall, people will be more hands off and I can see the lifestyle matching suit. As much as people initially put down condo living, I think the condo lifestyle fulfills this ideology.
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urbandreamer
recession proof
As another Chinese New Year begins, I was looking ahead at the tea leaves.
2020 is when the real big bubble will burst. Why? 2020 in numerology adds up to 4.
Oh and 2020 is the Year of the Rat. Recall what happened when the rat was last in power c.2008?
2020 is when the real big bubble will burst. Why? 2020 in numerology adds up to 4.
Oh and 2020 is the Year of the Rat. Recall what happened when the rat was last in power c.2008?
Grifter
New Member
Not sure if this is the right thread, but I'm looking at investing in Toronto condos in the future and I'm currently trying to research which developers are the best in the City and which developers I should stay away from if I were to purchase pre-construction. Alternatively, if I decide to purchase a resale condo, what buildings stand out in the downtown core? Thanks for your input.
Auraz
Active Member
Grifter
New Member
Thanks!
What's your opinion about some of the best condo buildings in the city? I'm looking for buildings that are well managed, have a strong board of directors and have reasonable maintenance fees.
James
Senior Member
Looks like the single family home bidding wars are still alive and well in the sub $600k price range. Keep in mind the properties in this article are semi-detached bungalows. With the prices of detached homes in the city going sky high these days, it's only inevitable that the demand for semis are going to grow. On a national level though, I'm keeping my eyes on the market to see how the Toronto and Vancouver markets fare with the oil collapse that's hammering Alberta. A trickle down effect will ultimately put a damper on any market momentum here in the GTA.
http://www.theglobeandmail.com/life...ly-bidding-for-toronto-homes/article23070035/
A lack of listings leads to lively bidding for Toronto homes
CAROLYN IRELAND
The Globe and Mail
Published Thursday, Feb. 19 2015, 9:08 AM EST
Last updated Thursday, Feb. 19 2015, 9:13 AM EST
Lively bidding for a small house in Leslieville last week caused a buzz around the neighbourhood when the house sold for $96,000 above the asking price of $499,000.
One neighbour on Berkshire Avenue looked around at his own nearly identical bungalow and called listing agent Christopher Stevenson to pepper him with questions about the sale down the street at number 21. By the end of the conversation, the owner at number 75 had decided to enlist Mr. Stevenson to sell his house too.
Mr. Stevenson, an agent with Sutton Group-Associates Realty Inc., says lower interest rates and a few high-profile sales have combined to bring a little bit of fresh vitality to the Toronto market. Still, lots of properties are changing hands without frenzied bidding wars and agents say new listings are trickling out slowly.
The Toronto Real Estate Board reported this week that sales jumped nearly 15 per cent in the first two weeks of February in the Greater Toronto Area compared with the same period in 2014. The average price climbed 10.3 per cent but new listings edged up only 3.5 per cent in the first half of the month compared with the same period last year.
Bidding contests such as the one for the semi-detached bungalow at 21 Berkshire Ave. have contributed to the price gains. Listed with an asking price of $499,000, it sold one week later on the night set for reviewing offers, for $595,000, after about 75 showings.
The sellers received four strong offers, Mr. Stevenson says, but the winning bid was far ahead of the others. He learned from the buyers’ agent that the couple had lost out on nine or 10 properties in past bidding wars.
“I think they decided ‘enough fooling around’ and they made sure they got it.â€
Mr. Stevenson plans to contact the agents of the three parties who lost out on the house and let them know that a similar house is coming.
He says 75 Berkshire Ave. is “the same but different.†The floor plan has been altered in a slightly different way because the owner at number 75 kept the original layout of the kitchen and living room and combined two bedrooms into one. At number 21, one bedroom was also enlarged and opened up.
Mr. Stevenson says he wasn’t surprised that 21 Berkshire sold for more than the asking price but he was anticipating a selling price closer to $550,000 or maybe as high as $565,000.
He chose the $499,000 asking price because he figured that price might also draw people who are looking at condos.
“I think that keeping under $500,000 was key,†he says.
The sellers had purchased the house for $429,000 a couple of years ago. They invested about $11,000 in a small renovation on the main floor.
“You can imagine how happy they were,†he says of the outcome.
Mr. Stevenson plans to list number 75 at $499,000 as well. He will also set an offer date seven days after it arrives on the market on Monday. He says he’s not varying the strategy because there are still potential buyers out there who were drawn to the first house.
“The seller liked it, obviously, because it worked.â€
He says the sale at number 21 seemed to stir some optimism in other potential sellers and also investors who wanted to know about the potential for rental income in such a house.
Numbers reported by the Canadian Real Estate Association this week show that confidence is faltering in several real estate markets across Canada. Sales in Calgary, Edmonton and Saskatoon tumbled more than 20 per cent in January compared with January of 2014. Activity is slow in Ottawa, Montreal and the rest of Quebec.
Douglas Porter, chief economist with the Bank of Montreal, says the Canadian housing market is cooling notably – even outside of Alberta where the volatility in energy prices has caused a sudden reversal of fortune.
Toronto and Vancouver are resisting those headwinds, with rising sales and prices in both cities in January, notes Mr. Porter.
“We suspect that with borrowing costs still plumbing the depths and many provincial economies holding up, any housing correction will be a specific regional affair,†he says.
Mr. Stevenson is sensing a lifting in the bidding war ennui that seemed to settle over the Greater Toronto Area market in the dwindling days of 2014. Some house hunters felt priced out of the market altogether and wanted to save up some more cash.
“There are some discouraged people,†he says.
Since the Bank of Canada’s surprise rate cut in January, however, he has noticed a renewed vigour on offer nights.
“I think the interest rate announcement put a little bit of spark back in people.â€
Still, another Leslieville house on a nearby street was listed around the same time with an asking price of $649,000. It didn’t sell on offer night and was quickly taken off the market and relisted for $675,000.
“I think they listed too high for the offer date approach,†Mr. Stevenson says.
Elli Davis, an agent with Royal LePage Real Estate Services Ltd., says she would be glad to see new listings pick up.
“I’m used to having much more to sell.â€
Real estate agents who find more of their listings among the single-family houses of popular Toronto neighbourhoods say new properties are scarce. Ms. Davis sells mostly in the mid-to-upper tiers of central Toronto.
“My phones are not as busy as usual,†she says.
But a swell in inventory may be coming: over the Family Day weekend, Ms. Davis signed up three additional properties. She’s preparing to list a small house in Rosedale and a three-storey in Forest Hill with asking prices just below $2-million. The third is a condo unit in Yorkville that will have an asking price of $1.795-million. All will arrive on the market within a couple of weeks.
One unit that she had listed near Yonge and St. Clair did not move in the fall. Ms. Davis took it off the market for a while, had it painted and staged, and it sold within a week when it was listed again in January.
She adds that many of the older condos being sold this winter are on the market because an owner is moving into a retirement home.
“That’s a demographic that’s very busy right now.â€
At the same time, the buyers are often couples who are selling a big house and downsizing to a condo.
In one case, she sold a condo in the Governor’s Hill building near Yonge and York Mills within a week in the depths of January. The 3,000-square-foot unit sold for the full asking price of $1,629,000, she says. Ms. Davis says older buildings such as Governor’s Hill are sought-after because they offer large units and buyers often consider they are getting better value for their money than they do in a newer building.
http://www.theglobeandmail.com/life...ly-bidding-for-toronto-homes/article23070035/
A lack of listings leads to lively bidding for Toronto homes
CAROLYN IRELAND
The Globe and Mail
Published Thursday, Feb. 19 2015, 9:08 AM EST
Last updated Thursday, Feb. 19 2015, 9:13 AM EST
Lively bidding for a small house in Leslieville last week caused a buzz around the neighbourhood when the house sold for $96,000 above the asking price of $499,000.
One neighbour on Berkshire Avenue looked around at his own nearly identical bungalow and called listing agent Christopher Stevenson to pepper him with questions about the sale down the street at number 21. By the end of the conversation, the owner at number 75 had decided to enlist Mr. Stevenson to sell his house too.
Mr. Stevenson, an agent with Sutton Group-Associates Realty Inc., says lower interest rates and a few high-profile sales have combined to bring a little bit of fresh vitality to the Toronto market. Still, lots of properties are changing hands without frenzied bidding wars and agents say new listings are trickling out slowly.
The Toronto Real Estate Board reported this week that sales jumped nearly 15 per cent in the first two weeks of February in the Greater Toronto Area compared with the same period in 2014. The average price climbed 10.3 per cent but new listings edged up only 3.5 per cent in the first half of the month compared with the same period last year.
Bidding contests such as the one for the semi-detached bungalow at 21 Berkshire Ave. have contributed to the price gains. Listed with an asking price of $499,000, it sold one week later on the night set for reviewing offers, for $595,000, after about 75 showings.
The sellers received four strong offers, Mr. Stevenson says, but the winning bid was far ahead of the others. He learned from the buyers’ agent that the couple had lost out on nine or 10 properties in past bidding wars.
“I think they decided ‘enough fooling around’ and they made sure they got it.â€
Mr. Stevenson plans to contact the agents of the three parties who lost out on the house and let them know that a similar house is coming.
He says 75 Berkshire Ave. is “the same but different.†The floor plan has been altered in a slightly different way because the owner at number 75 kept the original layout of the kitchen and living room and combined two bedrooms into one. At number 21, one bedroom was also enlarged and opened up.
Mr. Stevenson says he wasn’t surprised that 21 Berkshire sold for more than the asking price but he was anticipating a selling price closer to $550,000 or maybe as high as $565,000.
He chose the $499,000 asking price because he figured that price might also draw people who are looking at condos.
“I think that keeping under $500,000 was key,†he says.
The sellers had purchased the house for $429,000 a couple of years ago. They invested about $11,000 in a small renovation on the main floor.
“You can imagine how happy they were,†he says of the outcome.
Mr. Stevenson plans to list number 75 at $499,000 as well. He will also set an offer date seven days after it arrives on the market on Monday. He says he’s not varying the strategy because there are still potential buyers out there who were drawn to the first house.
“The seller liked it, obviously, because it worked.â€
He says the sale at number 21 seemed to stir some optimism in other potential sellers and also investors who wanted to know about the potential for rental income in such a house.
Numbers reported by the Canadian Real Estate Association this week show that confidence is faltering in several real estate markets across Canada. Sales in Calgary, Edmonton and Saskatoon tumbled more than 20 per cent in January compared with January of 2014. Activity is slow in Ottawa, Montreal and the rest of Quebec.
Douglas Porter, chief economist with the Bank of Montreal, says the Canadian housing market is cooling notably – even outside of Alberta where the volatility in energy prices has caused a sudden reversal of fortune.
Toronto and Vancouver are resisting those headwinds, with rising sales and prices in both cities in January, notes Mr. Porter.
“We suspect that with borrowing costs still plumbing the depths and many provincial economies holding up, any housing correction will be a specific regional affair,†he says.
Mr. Stevenson is sensing a lifting in the bidding war ennui that seemed to settle over the Greater Toronto Area market in the dwindling days of 2014. Some house hunters felt priced out of the market altogether and wanted to save up some more cash.
“There are some discouraged people,†he says.
Since the Bank of Canada’s surprise rate cut in January, however, he has noticed a renewed vigour on offer nights.
“I think the interest rate announcement put a little bit of spark back in people.â€
Still, another Leslieville house on a nearby street was listed around the same time with an asking price of $649,000. It didn’t sell on offer night and was quickly taken off the market and relisted for $675,000.
“I think they listed too high for the offer date approach,†Mr. Stevenson says.
Elli Davis, an agent with Royal LePage Real Estate Services Ltd., says she would be glad to see new listings pick up.
“I’m used to having much more to sell.â€
Real estate agents who find more of their listings among the single-family houses of popular Toronto neighbourhoods say new properties are scarce. Ms. Davis sells mostly in the mid-to-upper tiers of central Toronto.
“My phones are not as busy as usual,†she says.
But a swell in inventory may be coming: over the Family Day weekend, Ms. Davis signed up three additional properties. She’s preparing to list a small house in Rosedale and a three-storey in Forest Hill with asking prices just below $2-million. The third is a condo unit in Yorkville that will have an asking price of $1.795-million. All will arrive on the market within a couple of weeks.
One unit that she had listed near Yonge and St. Clair did not move in the fall. Ms. Davis took it off the market for a while, had it painted and staged, and it sold within a week when it was listed again in January.
She adds that many of the older condos being sold this winter are on the market because an owner is moving into a retirement home.
“That’s a demographic that’s very busy right now.â€
At the same time, the buyers are often couples who are selling a big house and downsizing to a condo.
In one case, she sold a condo in the Governor’s Hill building near Yonge and York Mills within a week in the depths of January. The 3,000-square-foot unit sold for the full asking price of $1,629,000, she says. Ms. Davis says older buildings such as Governor’s Hill are sought-after because they offer large units and buyers often consider they are getting better value for their money than they do in a newer building.
TheKingEast
Senior Member
This is why we gave up looking for a house in Leslieville/Riverdale that wasn't an absolute dump and got a big condo. We just couldn't deal with the sky high demand and competing with crazy bidders willing to overbid for everything and driving up the market.
We should have bought last spring/summer. Prices were better and the quality of homes were superior.
We should have bought last spring/summer. Prices were better and the quality of homes were superior.
Migos
Active Member
I believe that this type of emotional response continues to drive the market and pushes people into the "win at all costs" mentality we're seeing in a lot of bidding wars. If you've had your heart set on 5 properties and lose all 5 to a bidding war, I understand why some people would leave their cognitive functions behind while bidding the 6th property.
I just hope people don't bite off more than they can chew in terms of outbidding their budget and rather look to something more affordable like you are doing.