Real Estate Information Archive

April Experiences Record Number of Buyers and Sellers

Durham Region, Ontario - Wednesday, May 12, 2010

Greater Toronto REALTORS® reported 10,898 sales through the Multiple Listing Service® (MLS®) in April, representing a 34 per cent increase compared to April 2009. There were also 20,683 new listings in April – a 59 per cent annual increase. Both the sales and new listings results amounted to new records for the month of April under the current Toronto Real Estate Board (TREB) boundaries. “The GTA resale market is functioning properly. Sales were high as buyers continued to take advantage of affordable home ownership opportunities. Listings grew as home owners reacted to strong sales and price growth,” said Toronto Real Estate Board President Tom Lebour.

“More balanced market conditions will result in sustainable rates of annual price growth in the second half of 2010.” The average price for April transactions was $437,600 – up 13 per cent compared to the average of $385,641 recorded in April 2009. “Home sales continue to be driven by many different segments of the market, with sales growth for all major home types in both the City of Toronto and surrounding 905 regions,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “Home sales will remain strong in the second half of 2010, but will slip from the current record pace as borrowing costs rise.”

The Toronto Real Estate Board reported 4,120 sales in February 2009 compared to 6,015 sales recorded in February 2008...a decrease of 31.5% for that period.

The average home price was $361,305 last month compared to $382,048 during the same month last year, again a decrease of 5.4%.

On a month-over-month basis both sales and average price were above January levels of 2,670 sales and average price of $343,632. This represents a sales increase of 54.3% over the previous month and an increase in the average price of 5.1%.

DONTCHA-JUST-LOVE-THOSE-NUMBERS?

If you want the numbers to point down (news media) they do. If you want them to point up (salespeople) they do that too! Creative Accounting!

The bottom line is most people who want to buy or sell a home simply want to know if it's a good time to do it!

My team tracks a few sets of numbers, both a 6 month running tally which gives us a bead on direction of the market pretty quickly and a year over year comparison by time period and year-to-date which is really useful when pricing properties and assisting our buyers with their Offers.

Seasonality, even in a recession, plays a factor. January always starts off weak but activity (and prices) picks up through Feb/March/April/May, before trailing off again in the summer. We're seeing that this year is no different. I would expect sales volume and average price to continue rising throughout the Spring market.

Multiple Offers are indeed occurring on well priced starter homes. We have been involved in approximately 8 this year, at last count.

Moving Up? Sell your home first! We have a way of protecting you in the event you can't find a home you like after yours is sold.

Stimulus? Interest rates are extremely low and banks are lending. We do not have the credit crunch in Canada that our neighbours to the South are experiencing. Banks are anxious to lend money to qualified buyers.

Median Price: The Median Price for February 2009 compared to February 2008 showed a decrease of only 3.4%. Do you know what a median price is?

Have a question or just wanna chat? We love talking about what we know best - Real Estate and more specifically...homes for sale right here in Durham Region!

Give us a call or ask your question on this blog and we'll get right back to you!

The Real Estate market, like many other sectors such as manufacturing and exports, has taken it's share of bumps and bruises this year, yet over the past 30 days we have sold 3 homes over the listing price with multiple offers. They were:

Whitby - $9.000.00 over asking price

Toronto - $52,000.00 over asking price

Orono - $3,100.00 over asking price

That's how goofy real estate can be!

Real Estate values and demand are a very, localized affair. As a listing agent one gauges the local market, price range of the property, condition of the property and most importantly, the amount of competition for similar homes nearby. It's ironic that with negative news stories constantly on the tube, some Home Sellers are having very good experiences with the sale of their homes!

What separates a bad experience from a good one, in my opinion? Proper pricing, knowing your product and knowing the competition. Pricing is the most important factor in a successful home sale.

What's the local real estate market doing? In Whitby the average days to sell sits at 28 days with owners achieving 98% of their asking price. The market is doing just fine. Sales are off the pace of 2007 but that was a record setting year to begin with. Sales in the 905 Region were down 5% from last year but average re-sale price still was in the positive by 5% over 2007.

Yes, there is definitely more re-sale inventory on the market and certain pockets like northeast Oshawa are very competitive. This simply means that Sellers need to price it right, and if a buyer doesn't like the price of a particular home and is un-able to negotiate with the Seller, he can move on to another house because there will be one just around the corner, in most cases. This nice, balanced market also means that if a home isn't up to snuff, top dollar won't be achievable unless there is some other, compelling feature to justify the price.

I think Durham Region is well positioned over the next couple of decades. Look at all the positive aspects of our Region:

1. Most affordable in the entire GTA

2. Major new highway (407) coming which will up property values and make commuting easier

3. Possible new nuclear plant and/or incinerator in Clarington, new developments for Whitby, Oshawa Courthouse and downtown revitalization, growth of UOIT/Durham College, new commuter rail line for norther tier, possible extension of GO train.

4. Oshawa GM shift saved for now and new product coming into the plant

5. Large migration of first time home buyers from metro Toronto.

We've been very fortunate so far, in light of all the economic turmoil in the U.S. and in the Canadian manufacturing sector. We have allot of activity in our business with home buyers but I can tell you that buyers are more educated than ever. After years of having a Seller's market, home-buyers can now be a little picky and in many cases can negotiate a better deal.

Onward Durham Region...a great place to live, work and play!

I enter someone else's home practically on a daily basis. Scary stuff, right? What's really scary are some of the things I see in older homes. The worst seems to be homes 15 years and older that have never been touched. It's not so much that things are worn out, many times they're not, depending on how hard the home has been lived in. But what does change is style! The home building industry is much like the auto industry. Builders are constantly searching out new styles, products, colours etc. so you can be sure that what's in style when you bought your home, will one day be "dated"...if you stay long enough...like me!

Here is the 1st of the 3 rooms that rise to the top of the Return On Investment (ROI) list:

KITCHEN - Average ROI = 83% (minor remodel), 78.1% (major remodel)

A major kitchen remodel, depending on size, could run upward of $100,000 and on average get a return of approximately 78%. You're talking about custom cabinetry, expensive surfaces, high end and built in appliances, designer services, flooring, lighting etc. A minor "facelift" averages a simiilar ROI but costs far less. The more modest project might entail cabinet refinishing, replacement of countertops and flooring and perhaps installing new appliances that are inexpensive but improve the room's appearance.

You knew I was going to list the Kitchen first. When I walk into a re-sale home and see a shiny, modern kitchen...I know that home is sold!

Make it a great day!

Sales Break 6,000 In Spite Of Winter Weather