As if there was any surprise, 2014 is shaping up to be another record breaking year for real estate sales in the GTA. Naturally, this is good news for those selling and downsizing, and bad news for those trying so desperately to break into the home ownership arena. Over the short term, tight supply and low interest rates will continue to play a pivotal role in price appreciation. For now however, the best entertainment continues to be the Sale Price Guessing Game as multiple offers continue to dominate the real estate landscape.
Available listings in the Freehold market declined by over 30% this week while sales only declined marginally. One would think that this unfortunate combination would create a spike in multiple offers but for the first time in months, it seems that cooler heads have prevailed. Our speculation is that there is a fair amount of Buyer fatigue going on from those who have lost in multiple offer scenarios. The resulting condition causes buyers to draw a line in the sand when it comes to the price they are willing to pay. Multiple offers declined this week by a remarkable 15%, meaning that ONLY 50% of homes had more than one potential buyer
The Condominium Market continues its balancing act. Both sales and available listings backed off by nearly 10% this week while the percentage of multiple offers remained relatively unchanged. Our research indicates that there are two interesting forces at play in the condo sector. First, lack of affordable freehold homes will continue to drive buyers to larger condo suites. Second, and as long as fewer suites in that size category continue to decline, we expect prices to outpace smaller suites.
HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:
REAL ESTATE MARKET ON PACE FOR HOT START TO AUTUMN
There are early indications that September appears to have been another strong month for Canadian home sales.
WHAT IS THE LAND TRANSFER TAX DOUG FORD WANTS TO ELIMINATE, AND CAN TORONTO REALLY AFFORD TO GET RID OF IT?
Doug Ford is promising to do what his brother Rob Ford could not — slash the municipal land-transfer tax if he is elected mayor. Following a closed- door meeting with the Toronto Real Estate Board, Mr. Ford announced his plan to cut the tax by 15%, or $52.5-million, every year for four years “without harming services.” The Post’s Natalie Alcoba examines the candidate’s promise and whether it’s feasible
AGENTS ON THE HOOK FOR ILLEGAL IN-LAW SUITES
The Real Estate Council of Ontario (RECO), the body that licenses and governs real estate agents, is cracking down on representatives who advertise two-unit homes without making clear whether the second unit — usually a basement apartment — is legal.
PEOPLE ADMIT TORONTO IS TOO EXPENSIVE BUT DON’T PLAN ON LEAVING
Torontonians say the city is too expensive, traffic is getting worse and it’s become an increasingly hard place for the average person to live. It’s too much for some people – 38 per cent of 1,292 people polled by Ipsos Reid for Global News said they were thinking about leaving the city because it’s too expensive.
HOUSING DISTORTION: VANCOUVER, TORONTO, CALGARY
A wise voice in the BNN newsroom told me there’s no such thing as an average home price in Canada, and of course that voice is right – all real estate is local. So when you hear stories about hot markets stoking fears of a housing bubble and a major price correction, well it really does depend on where you live.