The Toronto Real Estate Board released their Toronto Real Estate Market Update numbers for the last month and this is my comments on them.
So the purpose of today’s video is to explain how I THINK the Real Estate market is going right now and how it’s going to do in the future. Now a disclaimer here… I’m by no means an “expert”. Seriously, all I do is sell homes and I’m going to leave the expertise up to the media… the politicians… the fashion bloggers… and my neighbours son, Joe who’s never owned a house because they are the TRUE EXPERTS in this industry.
So this started off with what I was reading in the media In fact, I have an article on my computer by Maclean’s and the headline is,
Real Estate Sales are ‘Catering’ around the GTA Is this a ‘Crash’ in the making?
Now to be fair, the article is actually well written and quite creative. The title is a little bit misleading because when you get through the article you realize that there were only a couple of ‘pockets’ in the GTA where sales have come down dramatically.
The reality is that all of the other markets came down from the spike but nowhere near what the media is claiming that the market is like. In fact, you can’t have a ” housing bubble”… in one city, and then the city next door… doesn’t have a bubble. That just doesn’t exist so when you look at the real estate market fundamentals.
My totally Unqualified Real Estate Market Update.
As you can see from my ‘scientific’ chart… you can notice home prices continuously going up and then in 2016… something happened. Prices really started going up. I mean, you’re talking two, three, four percent a month in some areas and people were wondering, ‘what the heck is going on?’ I have my theories about it but again… this is an unqualified real estate market update so… we definitely want to rely on the media… and the banks to tell us what really happened. But, for this story what I’m going to say is this… prices really started to go up and in the beginning of 2017 last year… we were on an over-heated, frenzied pace. Until in April, when the government announced… new measures… for foreign home buying and speculation… among some other things including the Fair Housing Act…
It really doesn’t matter, but… the steam came out of the market and what you noticed, especially with detached homes… and luxury homes… about a Fifteen Percent drop in prices… over the next three months… and they kind of ‘bottomed out’ in September… and since September we’ve kind of been riding a… ‘status quo wave’
Prices are starting to slowly climb up and that’s where we are today. So in reality, if you look at today versus two years ago you’re still way ahead! Now for sellers, the problem is that they’re still listing at the 2017 home prices, hoping that they’ll get them. As a home seller my advice is simple, Price Your Home properly and also make it look good, because home buyers in today’s real estate market are willing to pay a lot of money for a home that is finished and decorated well, versus a home that needs work.
Now for all the home buyers out there, be careful that when you read these negative articles that you’re not underestimating the real estate market. Buyers looking for houses and condos for sale need to understand that that in order to see a significant drop in prices, you need to have a lot of sellers who HAVE to sell and that’s not the case right now in the Mississauga Real Estate Market.
Last year’s housing price dip was not caused by economic factors, it was caused by government regulation. Since home sellers aren’t losing their houses, they aren’t desperate to sell.
This is especially true for the more affordable properties such as condos and town houses, which continue to go up in price.
So who does this current real estate market benefit? Move up buyers who already own and want to buy a bigger house. So if you current own a town house and would like to move into a larger detached home you’re probably in the best situation you’ve been in in the past 5 years. So to answer the question, “is it a good time to buy a house?” I say YES IT IS.
My Prediction for the 2018 Housing Market
For the spring, you’re going to see very moderate growth, it’s going to be a little slower however I feel that as we get into the year and people get used to all the changes that are going on that you’re going to see an uptick in home sales and the prices will start going up also.
Jeffrey O’Leary, Broker
Better Homes and Gardens Real Estate Signature Service
186 Robert Speck Parkway, Mississauga, ON, L4Z 3G1
Link to Maclean’s article:
Ontario Fair Housing Plan:
Toronto Real Estate Board Market Watch:
The Totally “Unqualified” Spring 2018 Toronto Housing Market Report